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Energy company Enstroga asks ACM to revoke its supply license

The Netherlands Authority for Consumers and Markets (ACM) revokes the supply license of energy company Enstroga. This means that, from 12 November 2021 Enstroga can no longer supply its customers any natural gas and electricity, and that, on that date, all existing contracts and conditions will be cancelled. All of Enstroga’s customers will continue to receive natural gas and electricity. Customers will be redistributed among the other energy suppliers, and will get new contracts from the supplier to which they have been transfered.

On October 22, 2021, ACM urged Enstroga not to terminate the contracts of customers that did not agree with a price increase, and to continue the supply of energy to those customers. Enstroga subsequently said that they could not do so, and that it was no longer able to supply energy in a secure manner as a result of the increase in energy prices. That is why Enstroga asked ACM to revoke its supply license. Since ACM, too, is of the opinion that Enstroga’s security of supply is at risk, ACM has decided to revoke Enstroga’s license.

Consequences for customers

All of Enstroga’s customers will be redistributed among all other energy suppliers in accordance with the so-called ‘residual distribution scheme’. The idea behind this scheme is to ensure that all of Enstroga’s customers continue to receive natural gas and electricity. That is why, in addition to the approximately 150 customers that are currently still registered as customer with Enstroga, approximately 300 additional customers, to which Enstroga recently had stopped supplying energy and which have not yet taken out a new contract with a new energy supplier, will also be included in this redistribution. Since Enstroga wrongfully stopped the supply of energy to these customers, they, too, fall under this scheme. All of these customers will automatically be informed by their new supplier. In the meantime, they will continue to receive energy from Enstroga. Customers will subsequently be able to decide for themselves whether or not they wish to stay with their new supplier or to switch suppliers (after a notice period of up to 30 days).

It is possible that several customers in that group of approximately 300 customers to which Enstroga had already stopped supplying energy before November 9, 2021, already have taken out a new contract themselves with another supplier but that this new contract has not yet taken effect. These customers will initially be included in the redistribution among the different suppliers, but will subsequently be transfered to the supplier of their choice on the previously, contractually agreed upon date.

Enstroga has promised to send all customers their final bills so that it becomes clear whether Enstroga still owes these customers money or if these customers need to pay for energy that has already been supplied. It is not yet clear whether Enstroga is able to pay (in full or partially) customers that it still owes money, for example because they had paid more in advance than their actual energy consumption justifies or because they are still waiting for their sign-up bonuses or rebates.

ACM has made joint arrangements with  system operators aimed at ensuring that the redistribution among suppliers takes place as efficiently as possible. Enstroga’s customers that, after November 17, 2021 have not received information about their new energy supplier and therefore do not know to which energy supplier they will be transfered can inquire with their distribution system operator (Enexis, Liander, Stedin, Enduris, Coteq, Rendo or Westland Infra).

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