Energie-Nederland is pleased that the Authority for Consumers and Markets (ACM) is proposing that the reasonable cancellation fee – in case of early termination of a fixed-term contract (breach of contract) – should be determined in a more market-based manner. This would reduce the risks for energy suppliers in the current market conditions. The industry association has always advocated for this too.
President Cora van Nieuwenhuizen: “The new method of calculating a cancellation fee gives energy suppliers more certainty so that offering fixed price contracts becomes an option again. It’s a good development.”
Factors such as the uncertainty of sharp price rises and/or drops in the wholesale market and the financial collateral required for longer-term purchasing also play a role.
Incidentally, the proposal from the Authority for Consumers and Markets (ACM) aligns with European legislation, yet to be adopted into law in the Netherlands, which assumes compensation for economic loss.