Self-employed workers are harassed less and less often about unfavorable energy contracts

Small businesses, including many self-employed workers (or independent contractors), are harassed less and less often by energy suppliers that want to offer them business contracts for their private homes. In early-2019, the Netherlands Authority for Consumers and Markets (ACM) took stock of the state of play in the market, and contacted various energy suppliers about this issue.

Better protection

Many self-employed workers are enticed into taking out business energy contracts for their private homes, whereas they are entitled to consumer contracts. In this situation, these self-employed workers are considered consumers. They enjoy better protection: for example, having a cooling-off period and lower cancellation fees. In early-2019, the Netherlands Chamber of Commerce was still receiving approximately 300 complaints per month from business owners who buy energy for their homes, mostly for private purposes. The Netherlands Chamber of Commerce always forwards these complaints to ACM. In the course of 2019, the number of complaints dropped to 50 per month. A follow-up check by ACM confirmed this significant drop.

Cateautje Hijmans van den Bergh, Member of the Board of ACM, comments: “We are satisfied with the results of our enforcement action so far. Things are moving in the right direction, and energy suppliers have let self-employed workers more and more alone. And rightly so. When self-employed workers conclude energy contracts for their homes, and use this energy mostly for private purposes, they are considered consumers.  They are then entitled to the same protection.”

Suppliers adjust their methods

In early-2019, ACM sent a warning letter to all energy suppliers reminding them to offer the right conditions to small businesses that are established at their private addresses. Energy suppliers have since clearly started to adjust their methods. ACM may impose fines or orders subject to periodic penalty payments.