Eneco, Greenchoice and Essent announced significant tariff increases last week, starting October 1st.
Rising prices
On Thursday, Eneco informed customers that from the end of this week, gas prices will double and electricity prices will increase 2.5 times. This means that around 700,000 customers – a third of the total – often spend hundreds of euros more per month today.
In Greenchoice, 30% owned by Eneco, the prices of variable contracts also rise. From 1 October, a kilowatt hour of electricity will cost € 0.89, more than double the current rate of € 0.42. Gas ranges from € 1.84 to € 3.44 per cubic meter.
Announcing such a short rate change in advance is not allowed at all, according to the supervisory authority of the Dutch Consumer and Markets Authority (ACM). The legal deadline for terminating an energy contract is thirty days. The same period applies to tariff changes, according to the regulator.
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Jet: adjust immediately
According to the Minister of Climate and Energy Rob Jetten, companies must comply with the rules immediately and not only from the next scheduled change, as Eneco promised to do yesterday and Greenchoice promises today.
So adjust the rate change, Jetten says. “I expect all energy companies to do this immediately and retroactively,” he said. “Prevent ACM from intervening differently.”
Eneco and Greenchoice ignore this and inform RTL Nieuws today that the October 1 price hikes will continue. If customers disagree with the rate increase, they can leave is the message of the companies. The fact that this means that customers will still pay skyrocketing rates with another supplier when they switch is not Eneco’s problem, according to the information officer: “Customers have to evaluate the rates for themselves.”
Greenchoice states the same in a note: “Customers who have received a new rate as of October 1 can always switch to another provider immediately and without notice.”
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Legal bargaining
Eneco and Greenchoice believe that the minister and the regulator are interpreting the law incorrectly. The companies declare that they have always acted in compliance with laws and regulations.
And so the consumer is trapped between divergent interpretations of the law. ACM itself refers a decision of the Independent Disputes Commission in a judgment of the Court of Justice of the European Unionwhich supports the 30 day limit for rate changes.
Eneco, Vattenfall and Essent customers with variable contracts will receive much higher rates from 1 October. But the price of gas is falling; from 350 euros per megawatt hour to around 200 euros. You can see how this is possible in this video:
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To object
In the meantime, consumers can themselves oppose the planned tariff increases. It is possible with a letter of complaint can be found on the ACM website. Consumers can use this letter to signal that they disagree with the increase.
The objections presented will be dealt with within the applicable deadline, says the Eneco spokesperson. Greenchoice customers who have complained will receive “a personal response as soon as possible”.
The next tariff change in Eneco will be implemented on 1 November. “The first people will be notified of the new rates this weekend,” he says. That is, 30 days in advance.
The spokesperson does not want to further explain why the 30-day period is respected in this case and not for other customers.
From now on, Greenchoice will also communicate rate changes 30 days in advance.
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Greenchoice and Essent
ACM does not want to discuss what will happen if energy companies cancel the high rate on October 1st anyway. “We don’t want to get ahead of ourselves, the rules are now clear and energy companies must now provide clarity to their customers.”
Essent says it is still in the process of consulting on the matter.
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