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Two small energy companies unilaterally cancel permanent contracts, but that is not allowed

Suppose you have a fixed energy tariff for three or five years. And then the supplier comes up with a letter that offers only two choices: a huge rate increase, or cancel and find another supplier. Is that allowed? No, so judged the Netherlands Authority for Consumers and Markets (ACM) Friday. Contract is contract, even at high market prices.

A company that has stopped deliveries anyway, is therefore now facing a fine. For each week that is not delivered as agreed, a penalty of 15,000 euros follows, up to a maximum of 45,000 euros. ACM has not disclosed which company is involved.

Rate up or end of contract

The last few weeks comes up consuming amphora however a rain of complaints underway that focuses on two energy providers: DGB Energie from Hardenberg and Enstroga, which has its Dutch office in Maastricht. The stories of Enstroga customers are quite similar. They received a letter on 7 October that the rate – despite their permanent contract – was immediately more than doubled. Anyone who objected to this was told on 15 October that gas and energy would no longer be supplied as of 20 October.

At DGB, things are slightly less rigorous. Company says it will continue to supply energy, but can no longer maintain the fixed rate. Customers can therefore either switch to a much more expensive variable rate as of November 1, or look for a new supplier. Even then they pay much more: after all, those who switch with these high prices will pay much more than those who maintain their permanent contract.

The Consumers’ Association has also received dozens of complaints in recent weeks. “It is clear that a permanent contract cannot be terminated just like that,” emphasizes a spokesperson. The fact that the situation on the energy market is currently exceptional is no excuse. “We see that DGB has many contracts for five years: there is a risk that such a company takes itself. Other energy companies also adhere to the rules of the game. For example, they increase the variable rates: that is allowed.”

Sample letter

Both the Consumers’ Association and the ACM platform Consuwijzer have a sample letter put on the site with which people can object to unilateral termination of an energy contract. Although ACM’s penalty payment now only concerns one company, the authority emphasizes that it will also enforce the rules at other suppliers. “If it turns out that other companies also stop supplying, ACM will also take action against this.”

Enstroga and DGB Energie were not yet available for comment.

Also read:

Suddenly many energy offers have disappeared – ‘It can still pay to look at your contract’

The sharp rise in energy prices is causing energy suppliers to withdraw earlier offers en masse, reports online price comparator Pricewise.

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