ACM’s response to summons from Dutch foundation Stichting Benadeelden in Actie regarding the bankruptcy of energy supplier Flexenergie

Stichting Benadeelden in Actie, which is a Dutch foundation acting on behalf of injured parties, has started legal proceedings against the Netherlands Authority for Consumers and Markets (ACM) regarding the bankruptcy of Dutch energy supplier Flexenergie B.V. in 2018. In 2014, Flexenergie B.V. was granted a license from ACM for supplying electricity and natural gas to consumers and other small-scale users. ACM subsequently conducted oversight over the company through unannounced dawn raids, orders subject to periodic penalty payments, and a fine. ACM’s oversight may reduce the likelihood of energy suppliers going bankrupt, but it can never completely prevent bankruptcies.

At the time, Flexenergie was granted a license from ACM because the company met the statutory licensing requirements that were in effect at that time. When the energy market was liberalized, starting in 2004, the Dutch legislature chose to offer room to new entrants on the market. That is why no strict statutory requirements applied to energy suppliers (new and incumbents) at that time. In 2022, ACM tightened its oversight over energy suppliers in anticipation of new legislation in the new Dutch Energy Act. The claim by Stichting Benadeelden in Actie and the bankruptcy predate that time.

The lawsuit will be handled by the District Court of The Hague. The court will first assess whether Stichting Benadeelden in Actie can bring a claim in this case. Depending on the outcome of that assessment, the court will deal with the substance of the case. As long as the case is pending, ACM will not comment on this matter.