Dutch consumers sue six major energy firms over price hikes in variable contracts
Six major energy suppliers in the Netherlands are facing a collective lawsuit filed by Stichting Eerlijke Handelspraktijken (Fair Trade Practices Foundation), which claims millions of households paid excessive amounts under variable energy contracts. The foundation argues that consumers are owed compensation totaling hundreds to thousands of euros per household, according to Consumentenbond.
The legal action targets Vattenfall, Eneco, Essent, Greenchoice, Energiedirect, and Budget Thuis. “Our goal is first of all compensation for consumers who have overpaid in the past,” Esther Janssen, chair of Stichting Eerlijke Handelspraktijken, told RTL. “Additionally, we want energy companies to treat their customers in a fair and transparent way in the future.”
The lawsuit focuses on price increases applied to variable contracts since April 1, 2017. According to the foundation, the suppliers did not clearly explain why prices would change during the contract period. Customers were also not properly informed in advance about the financial impact of tariff adjustments.
Although the general terms and conditions did state that prices could change, the foundation argues that this was misleading. Janssen said, “This was already happening before the 2022 energy crisis,” referring to the surge in energy costs after Russia invaded Ukraine. She added, “Consumers then felt the impact of a variable energy contract and the unilateral tariff changes. Some were no longer able to pay their bills or switch to a fixed contract.”
The Amsterdam Court of Appeal ruled in March that Vattenfall had wrongfully implemented price increases. Because the other energy companies used similar contract terms, the foundation believes the scope of the claim is much larger.
Vattenfall disagrees with the ruling and has filed for cassation. “We do not agree with the judgment because under a variable tariff, the price can change during the term of the agreement,” the company said in a statement. “This can happen several times per year, and the tariff can rise or fall.”
In contrast, Essent won a related case just over a month ago before the Noord-Holland court. The court found that Essent had specified in its terms that tariffs for gas and electricity would change twice a year, typically on January 1 and July 1. The court ruled this adjustment was justified due to developments in global market prices and government policy.
Despite Essent’s legal success, Janssen said she draws confidence from the higher court’s ruling against Vattenfall. “The judgment of the Court of Appeal left no doubt that the amendment clause in these contracts is unfair, and therefore unlawful. With this summons, the legal process is now truly starting.”
According to Janssen, the claim has been under preparation for a year and a half. Two law firms are involved, and the effort is funded by two international litigation financiers.
The foundation is calling on anyone with a variable energy contract or model contract since April 1, 2017, to register via EerlijkeEnergieprijzen.nl. “Participation is on a no cure, no pay basis,” the foundation stated. Consumers will only receive compensation if the case is successful and will not have to pay to join the claim.
Janssen said she does not yet have a timeline for when the case might produce concrete results. She expects it will take several more months because the court must first decide whether the foundation is legally admissible to represent affected consumers. “We have confidence,” she told RTL. “The progress of the case can be followed on our website, and participants will be kept informed.”
Earlier this year, the Consumentenbond opened a separate reporting center for consumers with variable contracts. Although the bond and the foundation have been in contact, the Consumentenbond is not a party to the lawsuit. “The Stichting Eerlijke Handelspraktijken is the first organization to actually start a collective legal procedure on this issue,” Janssen added.
