ACM: energy suppliers inadequately inform consumers with solar panels

Many energy suppliers inform consumers with solar panels inadequately about feed-in tariffs and credits on their energy bills for generating power. At the same time, the methods that suppliers use for crediting and feed-in tariffs, which consumers are offered when feeding into the grid, do appear to be in order. This has been the conclusion of a study carried out by the Netherlands Authority for Consumers and Markets (ACM), which was prompted by questions and complaints received by consumer information portal ConsuWijzer. Anita Vegter, Member of the Board of ACM, explains: “Suppliers must inform consumers completely and correctly so that they are able to compare offers properly, and are able to check their bills. If consumers are able to make well-informed choices, energy suppliers will, as a result, experience competitive pressure. And that in turn is good for prices, quality, and innovation.”

Crediting and feeding into the grid

Consumers that generate power with solar panels are allowed to feed their ‘excess’ energy into the grid. In return, they are offered a feed-in tariff for the excess energy, which credits their energy bill. Energy suppliers are required to offer a reasonable feed-in tariff.

Informing consumers completely and correctly

In late-2014, ACM made arrangements with the energy suppliers about how consumers would be informed about products and prices. All offers to consumers must be easy-to-understand and customized, and consumers must be able to compare these with other offers. All suppliers must use the same, clear terminology. That way, consumers are able to make a well-informed choice about which supplier to choose, and they are able to check their bills. However, the study revealed that many suppliers provide to a very limited extent, or even fail to do so at all, the required information to solar-panel owners, whereas they are required to inform them completely about crediting and feeding into the grid. ACM has reminded energy suppliers of this obligation, and will strictly monitor whether suppliers improve their provision of information. If they fail to do so, ACM will start taking enforcement actions.

Different methods and tariffs

Suppliers use different crediting methods and feed-in tariffs. According to the study, all of these comply with the law. Solar-panel owners who generate more energy than they consume are able to gain a small financial advantage by choosing the right feed-in tariff, as there are suppliers that offer higher feed-in tariffs because of their sustainable reputation.