ACM forces energy providers to adjust their information online

The Netherlands Authority for Consumers and Markets (ACM) recently reprimanded four energy providers about giving potential customers unclear and misleading information on prices and expected costs through their websites. ACM has imposed orders subject to periodic penalty payments on N.V. Nuon Sales Nederland and Coöperatie Windunie U.A. The orders force these providers to end the violations, and to comply with the rules on consumer information.

For years, consumers have complained about energy providers that fail to inform them about their offers properly. As a result, they potentially miss out on financial benefits or do not make the right choices. The law mandates that offers made by energy providers must be easy-to-understand, clear, and complete. In order to offer certainty about what this means in practice for energy providers, ACM released the document 'Provision of information in the consumer energy market' (in Dutch: ‘Informatievoorziening op de consumentenmarkt voor energie’) in November 2014. ACM also announced it would actively take enforcement actions in cases of continuing non-compliance.

ACM is disappointed by the actions of the energy industry

Over the past few months, ACM checked the information on websites of energy providers, and has found that providers continue to violate the rules. That is why ACM has decided to take enforcement actions, starting with the providers that have committed the most serious violations.

Henk Don, Member of the Board of ACM, adds: “We are disappointed with the first results, and that is why we are taking firm action against continuing abuses. It is a shame that, despite having sat down with the industry many times, we need to take enforcement actions first before a lot of these providers finally begin to move.”

Violations by Nuon and Windunie

Energy company Nuon failed to mention the level of the network management costs in a clear manner that was easy-to-understand. In addition, its online calculation tool gave misleading information about the expected annual costs, and it also failed to inform consumers about the statutory cooling-off period in a clear manner that was easy-to-understand. Reseller Windunie failed to communicate in a transparent manner that it was not a supplier, leaving consumers in the dark over which supplier they actually were buying energy from. In addition, it also provided critical information about prices in an unclear manner and too late in the purchasing process, and it gave incorrect and unclear information about the statutory cooling-off period.

Orders subject to periodic penalty payments

By imposing orders subject to periodic penalty payments, ACM forces Nuon and Windunie to end these violations permanently. Nuon and Windunie have already adjusted their websites, which means they will not need to pay any penalty payments. The order imposed on Nuon could have had a maximum of EUR 125,000, and the maximum of the order imposed on Windunie could have been EUR 50,000.

ACM has contacted two other energy providers about similar violations. However, ACM does not need to impose any orders subjects to periodic penalty payments on these two providers, because they had already adjusted their websites before the order was finalized.

Follow-up investigations

ACM continues to keep a close watch on the information presented on the providers’ websites. In addition, ACM will take a closer look at the information presented in the contracts that consumers receive after accepting an offer, as well as at the information that is given over the phone (telemarketing) or at the door/in the street. ACM will also check whether providers comply with the obligation from their new code of conduct, which stipulates that they will always make consumers personalized offers.