ACM: energy companies provide correct information about origins of grey power
In its annual check of power disclosure labels, the Netherlands Authority for Consumers and Markets (ACM) this year predominantly looked into the correct presentation of the origins of grey power (sometimes also called brown power). The checks of the power disclosure labels have revealed that, out of the 66 suppliers that have licenses for supplying electricity to consumers and small businesses, two had not yet properly substantiated the origins of their grey power. After ACM had confronted these suppliers of its findings, they corrected the issue.
ACM also checked whether energy suppliers that sell power to consumers had published the mandatory power disclosure label on their websites before May 1, 2021. This was the case with 43 companies. Following a reminder from ACM, the other suppliers also published their mandatory power disclosure labels.
Edwin van Houten, Director of ACM’s Consumer Department, adds: “Customers must be able to see what energy they are supplied. That is why it is important that, each year, energy suppliers publish on their websites power disclosure labels, which explain how the supplied energy was generated.”
Since May 1, 2021, all energy suppliers, for the first time ever, have had to explain the origins of all of the energy supplied in the previous year. Energy companies can do so by substantiating the origins of all of the supplied energy by presenting cancellations of guarantees of origin (for green power) or certificates of origin (for grey power). This is also called full disclosure. Previously, only the origin of green power (wind, water, solar or biomass) had to be substantiated on the power disclosure label.
Suppliers that only supply electricity to large-scale users were randomly checked. Of these 7 checked companies, two were unable to substantiate the origins of the supplied energy. Following a request by ACM, these companies cancelled the required guarantees or certificates of origin.
As a result of full disclosure, the total supply of all suppliers together should be substantiated by guarantees and certificates of origin. For almost all of the energy consumed in 2020 (96%), this appeared to be the case. One of the reasons for that minor discrepancy may be that large business customers can also be supplied electricity by non-Dutch suppliers that do not have a registered office in the Netherlands, and thus do not fall under ACM’s regulatory regime, or because of the incomplete substantiation of power that is generated and consumed by private individuals.
Next to the checks of the power disclosure labels, ACM earlier this year launched an investigation into sustainability claims, including in the energy sector.