ACM analysis: Financial positions of energy suppliers have improved further
Summary
- Equity and liquidity of energy suppliers have improved further, according to an ACM analysis.
- Financial stability is important because suppliers must also continue to supply even in the case of sudden price fluctuations.
- ACM keeps a close watch on the financial positions of suppliers. That is why they must submit data about their financial positions twice a year.
Over the past six months, energy suppliers have, on average, succeeded in further improving their financial positions. This has been revealed by an analysis of the financial data that all energy suppliers submitted to the Netherlands Authority for Consumers and Markets (ACM) this spring. It is important that energy suppliers continue to be able to supply natural gas and electricity in a reliable manner, even in the case of sudden price fluctuations on the energy markets. That is why ACM keeps a close watch on the financial positions and buying strategies of energy suppliers.
An ACM analysis has revealed that the average equity of suppliers have increased further over the past few months. ACM also assesses whether suppliers have sufficient funds on hand to pay their bills in the short term (“current ratio”). This is important if a supplier, for example, unexpectedly needs to purchase more natural gas and/or electricity. The ACM analysis has revealed that the average current ratio of energy suppliers has also increased over the past few months.
ACM’s oversight
Energy suppliers that supply natural gas and/or electricity to consumers and other small-scale users are required to have supply licenses, which are granted by ACM. ACM checks whether suppliers continue to meet all license requirements. In order to monitor the financial positions of all 52 licensed suppliers, suppliers need to submit information to ACM twice a year. ACM checks prior to the winter period whether suppliers are in good enough a position to make it through a bitter winter. In the spring, ACM checks how suppliers have made it through that winter. The winter period is the most critical period for energy suppliers, because that is when consumers consume the most natural gas and electricity.
Intensified oversight
Although suppliers are, on average, financially in a good position, four suppliers are still under intensified financial oversight, because ACM has concerns about the financial positions of these suppliers, or because their buying strategies are not in order. ACM keeps a very close watch on these companies, for example by regularly requesting extra information, conducting extra checks, and making arrangements about the resolution of problems. ACM does not disclose which companies it is checking, but it will always disclose if it takes any formal measures against a supplier, so that customers will be aware of them. If the security of supply is directly at risk at a supplier, ACM will take measures, and customers will get contracts with another energy supplier. Customers therefore do not need to be concerned that they will be left without any natural gas and/or electricity. In the first half of 2025, ACM did not revoke any licenses.
Number of suppliers remains the same
At this time, 52 energy suppliers have licenses for supplying electricity to small-scale users, and 50 energy suppliers have licenses for supplying natural gas to small-scale users. This number is the same as at the start of this year. ACM has intensified its oversight over energy suppliers over the past few years, and also conducts stricter checks on the companies that apply for licenses. So far this year, ACM has rejected one license application. In addition, ACM held an exploratory discussion with one company in the last few months. In such discussions, ACM pays extra attention to the statutory requirements that come with licenses after they have been granted. Over the next several months, ACM expects multiple market participants to express their interest in licenses.