Consumers are entitled to verifiable and comprehensible energy bills

Only two in five consumers say they are able to compare their energy bills with the information in the offers and contracts they received from their energy providers. They also say that the information in their energy bills is not presented in a comprehensible manner. These are some of the findings from the Energy Monitor, which is a survey among consumers that the Netherlands Authority for Consumers and Markets (ACM) carries out twice a year. Consumers are entitled to energy bills that they are able to verify and understand. ACM believes that this situation needs to be improved, and that it can be improved. ACM has given energy companies until July 1 to come up with changes that will result in an energy bill that consumers are able to understand and verify. After the deadline, ACM will assess whether the results of these changes meet these principles and the rules. If this is not the case, ACM will take enforcement actions.

The importance of having verifiable energy bills

Clear tariffs and conditions is one of the topics of ACM’s Agenda. Bernadette van Buchem, Director of ACM’s Consumer Department, explains: “We believe it is very important that consumers are able to base their choices on correct information. That is why consumers should be able to verify and understand the entire process from offer to contract to bill. The energy bill is the final step in that process. The basic principle is that consumers must be able to compare their energy bill with the contract and see whether or not they were given what had been agreed upon.”

Current energy bills

ACM randomly selected and reviewed bills from various energy companies. It turned out that it was difficult to match the information in these bills with the corresponding contracts, and also that statutory rules had been violated. Here are some examples:

• Unavoidable costs (such as additional administrative costs, and regional surcharges) were not always included in the price, although such inclusion is mandatory;
• Amounts were sometimes presented without VAT, whereas it is required to include VAT;
• Tariffs that were adjusted between contracts were presented as averages for the entire period. As a result, customers are not able to check whether they had been given the tariffs that had been agreed upon in their contracts, and that were communicated during the contract period in case of tariff adjustments;
• Energy bills sometimes use different units of measurement than in the contracts (for example, the contract uses months, and the bill uses days).

ACM has pointed out to the energy companies these shortcomings as well as the rules that apply. Bills must be verifiable, and must at least comply with the rules. On top of that, energy companies can do more to make the energy bills more comprehensible for consumers. The energy companies have promised to introduce changes from July 1.

Clear information improves consumer confidence

In 2016, 1.25 million households switched energy companies. Price continues to be the most important reason for switching. Consumers need clear information for their switch in order to be able to compare different offers. However, over half of all consumers say they still find it difficult to understand and compare the information about energy prices on the websites of energy companies. Consumers that have switched once are more likely to switch again. Today, 64 percent of all consumers have switched twice or more times. A stunning 91 percent of all consumers are satisfied or very satisfied with the switching process.