Energy supplier Kikker Energie makes commitments not to increase its fixed rates without its customers’ consent
Energy supplier Kikker Energie will not switch customers with fixed contracts to more-expensive contracts without their consent, and it will withdraw letters and emails it sent to approximately 13,000 customers on 1 July. Kikker Energie has made these commitments to the Netherlands Authority for Consumers and Markets (ACM) to prevent ACM from taking further measures.
ACM announced that it would take measures against Kikker Energie because it threatened to increase the rates of fixed contracts of former customers of energy supplier DGB. In response to this announcement, Kikker Energie has made commitments not to switch customers to more-expensive contracts without their consent. ACM will keep a close watch on Kikker Energie to see whether the company honors its commitments.
Changing contracts unilaterally is prohibited
All of DGB’s customers were transferred to Kikker Energie through reseller Volti. A reseller is a company that performs services on behalf of an energy supplier, for example attracting customers or sending bills. Kikker Energie loses money on the fixed contracts of approximately 13,000 of the 20,000 transferred customers. On 1 July, Kikker Energie sent these customers letters and emails, telling them that they had to make a choice: either switch to a different supplier or take out a new fixed contract with Kikker Energie with higher rates. Kikker Energie threatened to switch customers that would not respond to this letter to variable contracts with higher rates. That is prohibited. That is why ACM confronted Kikker Energie with these practices, and subsequently announced measures.
Commitments
Kikker Energie has informed ACM that it fears it will suffer financial setbacks (possibly substantial ones) if it must continue to supply all of DGB’s former customers with loss-making fixed contracts at those lower rates. That is why Kikker Energie will ask customers whether they wish to agree to higher rates, or whether they wish to switch to different suppliers free of charge. Customers that do not want either of these options and that had not yet notified Kikker Energie of a decision can serve out their fixed contracts with Kikker Energie at the lower rates that they had agreed on with DGB. Customers do not need to do anything themselves for this. If customers have already accepted Kikker’s offer of 1 July, this group of customers can choose to go back to the previous contractual conditions. If they wish to do so, they need to notify Kikker of this decision either over the phone of per email within 30 days after receiving Kikker’s new email. Customers that have already switched to different suppliers, too, might still be able to go back to Kikker Energie at their previous rates and conditions. If so, they need to notify their new suppliers of this decision within the 14-day cooling-off period.
ACM finds it important that customers that take out fixed contracts are able to rely on the fact that they will be supplied with natural gas and electricity for the entire duration of the contract at the agreed upon price and under the agreed upon contractual conditions, even if their contracts are transferred to different suppliers. Since Kikker Energie fears that keeping the loss-making contracts of approximately 13,000 customers is not financially sustainable, it is allowed to ask customers to agree voluntarily to higher rates or to switching to different suppliers. This choice must always be made freely. That is why ACM will keep a close watch on Kikker Energie to see if the company will honor its commitments.
Kikker Energie will make sure that all of the approximately 20,000 former customers of DGB will have received a contract with the agreed upon rates and conditions by 30 September 2024.
More information
25-07-2024 Kikker Energie will not change fixed contracts without consent (in Dutch)
01-07-2024 Kikker Energie/Volti wants to change fixed contracts: this is what you can do | ACM ConsuWijzer (in Dutch)