Damage claim against Dutch regulator over "failed supervision" in energy firm's collapse

A foundation is claiming millions of euros from the Authority for Consumers & Markets (ACM) on behalf of former customers of Flexenergie. According to the Foundation for Victims in Action, the ACM is liable due to “its failing supervision” of the energy supplier, which was declared bankrupt in 2018. The foundation is initiating legal proceedings and demanding an amount of at least €15.7 million.

Flexenergie used large discounts on prepaid energy to attract customers. But it couldn’t keep these promises due to “organizational and financial disorder” within the company, the foundation said. After its collapse, customers did not get the energy they paid for and did not get their money back

According to the foundation, the ACM was aware of the situation at Flexenergie and failed to intervene. The ACM, as the “gatekeeper of the energy sector,” should not have allowed Flexenergie onto the market, the foundation said.

“We have attempted to find a solution for the situation in good consultation with the ACM. Now that this has not succeeded, we are going to court to repair this breach in legal order,” said Frank Bentschap Knook, chairman of the foundation.

In a response, the ACM said that, as a regulator, it cannot prevent an energy supplier from going bankrupt. Flexenergie met the requirements to obtain a supply license; these were deliberately kept low at the time. The regulator did subsequently intervene at the energy company, an ACM spokesperson said.

Since 2022, the requirements for obtaining a licence have been tightened. This happened after several energy suppliers went bankrupt as a result of the energy crisis sparked by Russia invading Ukraine.