When Europe went through its worst energy crisis in decades in 2021-2023, most people in Slovenia were just glad their lights stayed on and their homes remained warm, without thinking too much about the cost. But three years later, those same electricity bills have become the centre of a growing dispute.

The Slovene Consumers’ Association (ZPS) said recently that it launched a collective compensation action against the country’s biggest electricity supplier, GEN-I, accusing it of unlawfully raising household prices at the height of the crisis — and demanding millions in compensation.

The lawsuit against state-owned GEN-I refers to “unlawful unilateral increases in electricity prices charged to household consumers starting from August 1, 2022”.

Filed before the Ljubljana District Court on October 16, the lawsuit is set to be the first major test of Slovenia’s collective redress framework in the energy sector. It seeks to recover an estimated €193.4mn in overpaid bills for more than 300,000 households, with the average claim amounting to around €600 per family.

For many Slovene households, still recovering from the economic aftershocks of the pandemic and the inflation surge that followed, the case is more than just a matter of money — it’s about fairness, accountability and trust in an essential service.

The shock that sparked a lawsuit

GEN-I announced that it would raise average electricity prices by around 18% in August 2022, when, energy markets were in turmoil. Russia’s invasion of Ukraine had upended gas supplies, pushing prices up to record-breaking levels and forcing governments across the continent to intervene.

However, the Slovenian association now claims that GEN-I’s decision amounted to a unilateral change of contract, imposed without a valid legal basis and in violation of consumer protection rules. According to the collective action, customers were effectively charged more than what they had agreed to pay — and therefore entitled to refunds with statutory interest.

“In the collective action, ZPS demands that GEN-I refund consumers the difference between the contractually agreed electricity price and the unlawfully increased price charged, together with statutory default interest,” the association said in a statement sent to bne IntelliNews.

An independent analysis by economist Jože P. Damijan estimated that households collectively overpaid nearly €200mn, a figure that underscores the magnitude of the dispute.

GEN-I’s response

GEN-I has confirmed to bne IntelliNews that it has been notified of the collective lawsuit but says it has not yet received the full documentation and therefore cannot comment on the details. Nevertheless, the company strongly rejects ZPS’s claims that consumers suffered damage due to its actions.

The company emphasised that, since entering the household supply market in 2009, it has operated under strong customer-care principles. It noted that in the nine years prior to the 2022 energy crisis, GEN-I did not raise its prices at all.

“Even during the energy crisis, when some suppliers exited the market and left their customers behind, GEN-I stood by its Slovenian customers," GEN-I said in a statement.

The company pointed out that in 2022 alone, at the height of the crisis, it gained 50,000 new customers.

GEN-I also stated that it was the last supplier in Slovenia to adjust prices and that even during the most difficult period, its tariffs remained below government-regulated levels. It insists that it informed customers of any changes clearly and in advance, allowing them to withdraw from contracts and choose another supplier if they wished.

According to the company, it continues to be the most affordable electricity supplier in Slovenia, holding the largest market share.

It also said that since ZPS announced its collective action, only 0.78% of customers have joined the lawsuit — evidence, the company says, of the trust it continues to enjoy among consumers.

GEN-I argues that the ZPS action unfairly targets it alone, even though the association itself acknowledged that other suppliers also changed prices during the same period. The company believes that this selective approach raises questions about the motives behind the case.

Turbulent market conditions

The lawsuit cannot be separated from the broader turbulence that gripped Europe’s energy markets between 2021 and 2023. Slovenia, like many EU states, was forced to implement emergency measures to shield households from price shocks.

The government kept reduced excise duties on electricity and natural gas. Between September 1, 2022, and May 31, 2023, it also lowered the VAT rate to 9.5% on electricity, natural gas, district heating and firewood, according to the government statement.

From January 1 to December 31, 2024, the government capped electricity prices for households and small businesses, limiting 90% of consumption to a fixed, regulated price and leaving only 10% subject to market rates.

It also maintained reduced excise duties on electricity and natural gas and temporarily lowered the VAT rate to 9.5% for electricity, natural gas, district heating, and firewood between September 2022 and May 2023.

In addition, the government encouraged the use of solar energy and sustainable architecture as part of a long-term plan to reduce dependence on volatile energy imports and to strengthen domestic energy resilience.

These measures were introduced after a period of intense price volatility. Across Europe, electricity and gas prices surged to record highs, forcing suppliers and governments to balance consumer protection with the financial viability of the energy sector.

GEN-I’s performance

Despite the turbulent conditions, GEN-I remained one of the strongest performers in Slovenia’s energy market. The company’s financial results for 2024 show that net sales revenue fell by 30% year-on-year to just over €2bn, mainly due to falling energy prices. However, net profit rose by 45.3% to €36mn, while EBIT increased by 43% to €43.3mn.

GEN-I attributed its improved profitability largely to robust international energy trading, which compensated for weaker results in its electricity supply business in Slovenia and Croatia, where regulated prices limited earnings potential.

Today, the GEN-I Group comprises the parent company and 24 subsidiaries, operating in more than 20 European markets from France to Turkey. It is recognised as one of the region’s fastest-growing and most innovative energy companies.

Wider implications 

While the court has yet to rule on the admissibility of the collective action, ZPS has already described the case as a warning to all electricity suppliers in Slovenia. Its main goal, ZPS says, is to prevent the recurrence of similar practices and to strengthen legal certainty for consumers.

For now, the outcome remains uncertain. But what began as a price adjustment during a turbulent year has turned into a national test of corporate accountability — and a sign that consumers are increasingly ready to demand answers when fairness and transparency are at stake.

Under Slovenian law, the Ljubljana District Court must serve the collective action to GEN-I within 30 days. The company then has another 30 days to respond — but only on the question of admissibility, not on the substance of the claims, ZPS stated. If the court approves the collective mechanism, full proceedings will follow, likely stretching over months or even years.

For now, affected consumers need take no action. They are automatically included under the opt-out system unless they formally withdraw.

Whatever the eventual outcome, the case already represents a milestone in Slovenian consumer rights. 

As winter approaches and households once again turn up their heaters, the case serves as a reminder of how fragile public trust can be when the essentials of daily life — light, warmth and security — are at stake.

According to data from the Statistics Office, electricity and wood fuels accounted for the largest shares of household energy use in 2024, representing 35% and 33% respectively. Other notable sources included extra light heating oil with around 8%, natural gas and ambient heat captured by heat pumps each at 7%, district heating at 6%, liquefied petroleum gas at 2%, and solar energy at 1%.

Overall, Slovenia’s household energy profile in 2024 reflected a balanced mix between domestic and imported sources, traditional fuels and modern technologies, and fossil and renewable energy.

This energy structure helps explain why electricity prices — and the policies shaping them — remain a matter of public concern. For many households, particularly those relying on electricity, even a moderate price adjustment can have a noticeable effect on monthly expenses.