Incorrect billing - Allegations of fraud - electricity customers get millions back
After a million-euro damage caused by incorrect billing at Dortmunder energy supplier Stadtenergie, around 40,000 swindled customers are getting their money back. According to a statement, the amount involved is 36 million Euro, which were billed to electricity and gas customers through excessively high prices. The background of the affair is fraud allegations against the daughter company of Dortmunder energy supplier DEW21, which came to light in the spring.
As a result of the affair, the CEO of the parent company DSW21, Heike Heim, must now face the consequences. The supervisory board is reportedly tasked with discussing the termination of the cooperation with her and negotiating a termination agreement, according to the Citywerke DSW21. Several media had previously reported on this.
At the end of May, DEW21 reported on its website about "irregularities in individual customer billing" in the 2022/23 period and initiated an investigation into the matter. The prosecutor's office was also informed. In addition, a responsible manager was suspended.
Irregularities also affect the DEW21 result
After meticulous analysis by auditors and data analysts, the company and the group have now quantified the expected damage: DEW21 is expected to incur a loss of 74 million Euro for the year due to the damage at Stadtenergie. This includes not only earnings adjustments but also customer refunds.
The economic consequences will also affect the DEW-consortium as a shareholder, it was further stated: The consequences of the incidents will be reflected in the DSW21 balance sheet to the tune of a total of 46 million Euro. This will be noticeable for the city utilities, said Finance Director Jörg Jacoby in a statement.
"We are stable enough within the consortium to cope with this," Jacoby further emphasized. The city utilities therefore earned approximately 75 million Euro in profits for the year 2023, a spokesperson said.
- The allegation of fraud against the daughter company of Dortmunder energy supplier DEW21, which is a subsidiary of the company, led to the discovery of irregularities in their billing practices.
- The energy supplier Stadtenergie, a part of DEW21, has been accused of causing a million-euro damage due to incorrect billing, affecting millions of Euros in excessively high prices billed to electricity and gas customers in North Rhine-Westphalia.
- The municipalities in North Rhine-Westphalia, where DEW21 operates, will also be impacted by the billing scandal, as the company's financial troubles may affect the profitability of the DSW21 balance sheet, amounting to 46 million Euro.
- Following the spring revelation of these fraud allegations, the CEO of the parent company DSW21, Heike Heim, is now facing consequences, and discussions are taking place about terminating her cooperation and negotiating a termination agreement.
- Despite the scandal surrounding DEW21 and its subsidiary Stadtenergie, the overall financial performance of the DSW21 consortium remains strong, with the city utilities reporting approximately 75 million Euro in profits for the year 2023.
