ACM takes action against unclear energy bills

Consumers are entitled to receiving energy bills that they can understand and check themselves. Yet the bills of energy providers differ widely on these two aspects. Of the 40 energy providers whose energy bills the Netherlands Authority for Consumers and Markets (ACM) has examined, 16 providers issued clear bills on the reference date of July 1, 2017. 21 providers still need to take several steps in order to get there. However, three providers perform so badly that ACM has announced orders subject to periodic penalty payments.

ACM had previously established that the verifiability and comprehensibility of energy bills could and should be better. ACM had given energy providers until July 1, 2017 to implement changes to their bills. ACM subsequently assessed whether or not the energy providers have indeed issued verifiable and easy-to-understand energy bills since. The assessment has revealed that, apparently, this varies widely.

Basic principles in the assessment

ACM has assessed whether the bills are easy-to-understand, and whether, in terms of design, they can be easily linked to the contracts of customers and to notifications of price changes. ACM did not assess the accuracy of the bills.

The most important basic principles in ACM’s assessment were:

Any prices that have been adjusted between annual bills must be listed separately on bills, and should not be listed as an average for the entire billing period. Otherwise, it is difficult for customers to see whether they have been charged the tariffs that had been agreed upon in the contract, and those that had been communicated in any notification of price changes.

Units used in bills must be the same as those used in contracts and notifications of price changes (for example, it is not allowed to use monthly rates in contracts, and daily rates in bills).

Bernadette van Buchem, Director of ACM’s Consumer Department, explains: “Almost half of all Dutch consumers go through their annual energy bills, and check them for accuracy. They should be able to understand and verify the entire process from offer to contract to bill. In that way, they are able to check easily whether the provider has delivered what had been agreed upon, and at what price.”

Energy providers with verifiable bills that are easy-to-understand

The energy providers that ACM has examined, and that comply with the basic principles for verifiable and easy-to-understand bills are: