ACM: Customers of energy supplier HEM can switch suppliers at no costs or opt for lower rates

Allround Hollands Energie B.V. (trading under the name Hollandse Energie Maatschappij, or HEM) will retroactively lower its rates for everyone that took out fixed contracts with HEM in 2023 or through April 29, 2024. All of these consumers and other small-scale users can decide themselves whether or not they wish to remain customers with HEM for these lower rates or if they wish to switch suppliers (without having to pay an early-termination fee). HEM has made this legally enforceable commitment to the Netherlands Authority for Consumers and Markets (ACM) to avoid further measures by ACM.

ACM will keep a close watch on HEM to see whether it will comply with these arrangements. In addition, an independent monitoring trustee will be appointed to oversee HEM and who will report directly to ACM. Failure to comply with the arrangements on HEM’s part may have consequences for its license.

HEM has said that it has already stopped selling energy contracts over the phone, and it has also made a commitment not to attract customers over the phone for the next three years.

Last year, ACM issued several warnings against HEM’s high rates, and, in September 2023, ACM took action following an investigation that had shown that HEM’s rates were unreasonably high. ACM has also ordered HEM to get its administrative systems and finances in order, and has fined the company 1.1 million euros for having misled customers in telemarketing calls involving energy contracts. Since ACM has received over 1,000 complaints about HEM since 1 January 2024, ACM has announced additional measures against the company. In response, HEM has offered to make a commitment. ACM has accepted this commitment to ensure that customers who took out fixed contracts in 2023 and 2024 have a choice between switching suppliers without having to pay early-termination fees or accepting HEM’s offer of lower rates.

Reduced rates

The price reductions will retroactively apply to everyone that took out fixed contracts in 2023 or through April 29, 2024. HEM will comply with ACM’s maximum tariff decision. With this decision, ACM retroactively set lower rates for several fixed contracts and variable contracts that went into effect in the first half of 2023. Customers that took out fixed or variable contracts in the first half of 2023 that fall under the scope of the maximum tariff decision will thus be retroactively compensated for the too high rates.

All other customers that took out fixed contracts in 2023 through April 29, 2024, will retroactively pay a reduced rate from January 1, 2024. Customers that took out fixed contracts between January 1 and April 29, 2024, and that wish to stay customers with HEM will pay the reduced rate from the month in which they became customers.

HEM has also committed to reimbursing former customers that took out fixed contracts in 2023 or in 2024 and had already paid a early-termination fee.

Switching suppliers at no costs or staying with HEM for the new rate

HEM will inform all customers within two weeks what their new rates will be. These customers will be able to choose if they wish to remain customers with these new rates or if they will switch suppliers immediately, without paying an early-termination fee. Customers that wish to switch will have to take action themselves and take out contracts with a different supplier. They can do so directly with the supplier of their choice, or through a comparison website. Customers that switch suppliers keep their right to compensations for the too high rates that they had paid if their contracts fall under the scope of the maximum tariff decision. Customers (including former ones) of HEM can find more information on HEM’s website .