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NMa guarantees security of supply for customers of Orro Energy

The Netherlands Competition Authority today revoked the license of Orro Energy (hereafter: Orro) for the provision of electricity and natural gas. Orro offers energy to consumers as well as to small and medium-sized businesses (SMBs).  Customers of Orro do not need to be worried since their energy supply is guaranteed. A special mechanism kicks in, which ensures that consumers and SMBs continue to receive electricity and gas. Chris Fonteijn, Chairman of the Board of the NMa, reacts: ‘Consumers do not need to be worried about whether or not they will receive their electricity or natural gas in case their provider unexpectedly goes bankrupt. By revoking the license, a special mechanism kicks in that will guarantee security of supply for Orro customers.’

Orro’s current financial situation is not good, and a bankruptcy in the short term is expected. Orro is no longer able to pay for its purchased energy, which means Orro can no longer serve its customers. That is why the NMa stepped in, revoking its license. Supply of energy is guaranteed for the next ten working days by the transmission system operators TenneT and Gas Transport Services (GTS). In the meantime, a solution must be found for Orro’s customers. Solutions may include having one provider take over all of Orro’s customers or redistributing them proportionally among the other providers. During the ten-day period, Orro customers will temporarily be unable to switch energy providers themselves. Once they have been transferred to another energy provider, they will be informed thereof. Consumers and SMBs that are not happy with their assigned provider or with his tariffs or conditions can switch to another provider. The normal notice period of 30 days applies in those situations.

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