DTe Imposes a Fine on Durion for Misleading Customer Acquisition
The Office of Energy Regulation (DTe) has imposed a fine of EUR 220,000 on Durion Energie B.V. (a subsidiary of Energiebedrijf.com). The reason for the fine is the use of unfair and misleading acquisition methods by Durion. This is a serious infringement of the Electricity Act. DTe monitors closely whether energy companies comply with energy legislation and acquire customers fairly. DTe conducted an investigation into Durion's methods of acquisition, partly due to numerous complaints by consumers. It is the first time that DTe has imposed a fine.
DTe established that the following infringements of the Electricity Act had been committed:
- In telesales conversations, Durion does not make it sufficiently clear whether and subject to what conditions consumers enter into a contract with Durion.
- Durion gives consumers the impression that they are being approached by their present energy supplier to offer them a discount on their energy bill.
- Durion makes incorrect statements with regard to the amounts that consumers can save by entering into a contract with Durion.
- Consumers are not properly informed of possibility of terminating the contract.
- Durion often also sends a contract to consumers who only ask for information. "Consumer protection is one of the most important pillars of the Electricity Act," G.J.L. Zijl, Director of DTe, emphasises. "As a result of Durion's method of operation, the confidence of consumers in the liberalised energy market is harmed. After such contacts with Durion, consumers will become more hesitant to enter into contracts with new suppliers," according to Mr Zijl.
In addition to the fine, DTe also imposed two orders subject to penalties of EUR 20,000, subject to a maximum of EUR 400,000, and EUR 1,000, subject to a maximum of EUR 200,000, respectively. The first order subject to a penalty relates to DTe's demand that Durion gives its acquisition staff clear instructions so that fair sales methods are adopted and so that the company complies with the Electricity Act. If Durion does not do so, it will forfeit a penalty of EUR 20,000 a day. The second penalty compels Durion to set up a proper system for recording parts of the discussions within two months. Such recordings allow DTe to monitor whether an energy company acquires potential customers fairly. For every conversation which is not recorded after this, Durion will forfeit EUR 1000. Durion was not able to provide DTe with a large number of the recordings requested, while it is obligatory to save the recordings.