Energy companies shift to customer-friendly debt collection to help clients pay bills
Energy suppliers in the Netherlands are increasingly adopting “social collection” methods to recover unpaid bills, a shift that includes earlier personal contact, fewer penalties, and more payment plans. According to NU.nl, the approach is being used by companies such as Essent and Eneco. Meanwhile, municipalities and policymakers in Rotterdam and Amsterdam, as well as the national Central Judicial Collection Agency (CJIB), are also adjusting debt enforcement practices to limit rapid escalation of consumer debt.
At Essent, a spokesperson said the company no longer begins with demands but with outreach. “When someone does not pay, we do not say, 'You must pay,’ but ask why it is not possible and whether we can help,” the spokesperson told NU.nl. “We really listen to what is going on, and that approach works.”
The company said social collection means early personal contact with customers in arrears, assessing what they can realistically pay, and minimizing additional charges.
“Life without electricity is quite difficult, so we want to prevent that,” the spokesperson said. “This prevents arrears from escalating. As a result, there are fewer long trajectories, fewer heavy collection measures, and fewer uncollectible claims and, therefore, lower costs in the long term.”
Eneco said it began moving away from strict enforcement about a decade ago, issuing fewer reminders and more often arranging payment plans. The company reported a decline over the past decade in terminated energy contracts for nonpayment, though that trend has stalled in the past three years. “Without electricity, life is quite difficult. We want to prevent that,” an Eneco spokesperson told NU.nl.
Eneco also said the number of customers with overdue bills is shrinking, but those who fall behind tend to remain in financial distress longer, particularly young adults. The company said it has reduced legal and bailiff-related costs by nearly a factor of ten, eliminating “hundreds of euros” in legal fees for customers.
At the same time, energy companies continue active outreach. Vattenfall conducts thousands of home visits annually, according to a spokesperson, as part of efforts to contact customers who do not respond to calls or mail.
Debt expert Rosanne Oomkens told NU.nl that the broader societal impact of debt is significant. “Debt problems cost society at least 8.5 billion euros per year,” she said. “Those costs also land on the government and society. That is precisely why it is good to limit the buildup of debt.”
Oomkens also noted that some debt collection firms operate on a “no cure, no pay” model, earning a percentage of recovered debt, which can increase what consumers owe. “These agencies only earn if something is actually collected,” she said.
Under the social debt collection framework, led by Michiel van der Zant of the Stichting Financieel Gezond Nederland (SFGN), companies are being evaluated on whether they can label their collection practices as socially responsible.
SFGN estimates that about a quarter of all invoices are already handled by organizations using social collection methods, representing roughly 1 billion invoices from about 60 parties. The group is in talks with additional organizations, including childcare providers and auto insurers, to expand participation.
Some municipalities are also shifting enforcement practices. Rotterdam and Amsterdam now work only with collection agencies that follow social collection standards.
However, Oomkens warned that uneven incentives remain. Creditors are not required to act gently, which can undermine cooperative approaches. “A creditor who collects socially and patiently runs the risk that others claim the available repayment capacity first,” she said.
Government enforcement is also tightening in some respects while softening in others. A 100-euro traffic fine can rise by 50 percent after eight weeks and then double after a second reminder, eventually reaching 300 euros. Starting July 1, the CJIB will first send a free payment reminder to prevent rapidly increasing debt.
State Secretary Claudia van Bruggen (Justice and Security) is working on legislation that would map a person’s total debts before repayment begins, creating a collective repayment plan to distribute available funds more fairly among creditors.
Despite the shift toward softer approaches, collection limits remain. Eneco said that when customers do not respond to calls, emails, or other outreach, staff may visit in person, but “four out of five doors remain closed.” In those cases, the company ultimately ends contracts.
A spokesperson for the Dutch Association for Debt Assistance Services (NVVK) said the shift is broadly positive. “We are pleased with the movement from creditors themselves,” the spokesperson said. “A number of parties were still pushing the edge of the law by quickly terminating contracts, but that now seems to be a thing of the past.”
