ACM: price increase is not a reason for terminating energy contracts

The rising energy price is not a valid reason to stop supplying energy to consumers. The Netherlands Authority for Consumers and Markets (ACM) has published a press release about this on Saturday, after several reports from consumers to the ConsuWijzer complaints desk about terminated agreements.

The consumers who wrote to ACM received a message from their energy company that the supply would be discontinued. The agency also received questions from people who were told that agreements about a fixed price were being broken. The only option offered to these customers was to switch the agreement to a variable price arrangement. According to ACM, no valid reason was given for terminating the contracts in the cases investigated. The suppliers invoked general terms and conditions or non-payment against the consumers. However, the letters sent were not preceded by payment reminders, which is necessary.

Also read: You can do this as a consumer to limit the damage of the high gas price

Real reason

The regulator suspects that rising energy prices are the real reason for the broken agreements. That reason would also be mentioned in some letters, the ACM told ANP news agency. But the current price explosion does not meet the special circumstances set out in the general terms and conditions of the supply contracts. ACM advises customers who are told that energy supply will be discontinued “to send a letter or email in which they point out that the supplier may not terminate the agreement and may not stop the supply”.

In its own message, ACM does not specify which energy companies are involved. It is also not disclosed how many reports the agency has received. Earlier in the week it was announced that an investigation was launched into DGB Energie, which would have unilaterally terminated contracts by letter due to the rising prices of the past two weeks.

There is a lot of demand for gas and electricity throughout Europe, while the supply is limited. As a regulator, ACM monitors whether the Dutch energy companies are able to supply. If security of supply is endangered, the authority can revoke the license of energy companies.

–