Dutch regulator orders five energy firms to fix faulty cancellation fee practices

The Dutch Consumer and Market Authority (Autoriteit Consument & Markt, ACM) announced that five energy suppliers — Greenchoice, Essent, Clean Energy, Innova Energie, and Mega Energie — have agreed to improve how they inform customers about cancellation fees when ending fixed-term contracts early.

The ACM’s probe followed consumer complaints received through its ConsuWijzer platform regarding unclear or incorrect communication on cancellation fees. The ACM investigation found that several suppliers did not always inform customers promptly or accurately about whether a fee would apply or the estimated amount, which is crucial for customers considering switching suppliers.

Suppliers that wrongfully charged cancellation fees have refunded a total of about 230,000 euros to customers. The ACM said that the suppliers cooperated fully with company’s investigation and "have taken immediate measures to correct errors and prevent future mistakes."

Since summer 2023, new rules require suppliers to charge cancellation fees equal only to the actual costs caused by the early termination of gas or electricity contracts. Suppliers must immediately inform customers if a fee applies and estimate its cost so customers can reconsider their switch if needed.

Manon Leijten, board member of the Dutch Authority for Consumers and Markets, said in a company statement, “It is often unclear to customers whether they have to pay a cancellation fee. This uncertainty can discourage people from switching suppliers. That is why it is important suppliers provide clear and prompt information. It is positive that five suppliers have quickly corrected their mistakes.”