DTe Sets Conditions for Durion's Canvassing of Customers

The Office of Energy Regulation (DTe) has granted a supply licence subject to conditions to Durion Energie B.V. (a subsidiary of Energiebedrijf.com) following changes made by Durion on DTe's instructions to its method of canvassing customers. The licence relates to the supply to customers of electricity generated by renewable means (green electricity). DTe's point of departure is that customers must have clarity on whether and subject to what conditions they enter into a contract with Durion. The conditions include provisions, for instance, that it must be clear to the customer beforehand when the contract with Durion commences, what price is charged, what the components of this price are, what method of payment is used and what the period of notice is for cancellation of the contract. Durion has indicated that it will take these rules of conduct into account. In the coming period, DTe will regularly check that Durion has complied with these conditions.

DTe strives towards effective competition in the energy sector and therefore considers it important that new suppliers, such as Durion, are able to enter the market. A condition, however, is that energy suppliers are transparent in canvassing customers and apply reasonable conditions when entering into contracts.

Durion canvasses its customers by telephone. DTe has received various complaints about this. Customers indicate that they do not realise that they have entered into a contract with Durion and that Durion is not clear enough about this during the telephone call. DTe also regularly receives complaints that Durion debits the accounts of customers without the customers' having given written authorisation to do so. In addition, Durion allegedly created the incorrect impression that the company cooperated with regional grid managers.

As a condition, DTe has required Durion to make changes to the way it canvasses customers so that customers are given clarity beforehand about the company Durion, the product that it sells and the conditions subject to which this occurs. DTe also monitors other energy suppliers in this regard.

Recently Durion has canvassed customers without having a supply licence. This is permissible under the present Act. This is expected to change in the near future. Energy suppliers will be required to complete the licensing procedure before they are allowed to canvass customers.