Planning to change energy supplier? Keep these seven pitfalls in mind!

1. Fixed fee

Some suppliers charge a fixed fee, per contract year started. This means that you pay this fee in full if you remain a customer for less than a year. Amounts of up to more than 100 euros per contract are charged, both for electricity and natural gas.

The energy ombudsman has not been happy with this for years because switching suppliers should be free of charge. The law already regulates the fee for variable contracts. "The supplier may charge a maximum of 6 months of the fixed fee if you are a customer for less than 6 months. If you remain a customer for more than 6 months, the company may only charge the fixed fee for those months and no longer for a full contract year."

However, for fixed-price contracts, nothing is laid down by law yet and those fixed fees, per started contract year, are experienced as a disguised termination fee.

Agreements have been made with suppliers. The fixed fee can only be charged on fixed-term contracts of more than 1 year. "Even if you are only a customer for 1 month, you may have to pay for another year. Suppliers are also charging flat fees on 1-year contracts as well as on open-ended contracts."

2. Discounts

Many suppliers lure new customers with attractive discounts, but there are a few snags.

Often, discounts are only calculated on part of the energy bill.

A discount may be awarded on the amount of energy you consume, "but first check carefully exactly how many kWh you get for free," says the ombudsman.

Conditions are often set on discounts. "For example, you only receive the discount after you have been a customer for a year and a half, or they only show up on your bill much later."

3. Pre-payments and final bill

Pre-payment instalments and final bills sometimes turn out to be higher than expected. As a customer, you always have the right to ask the supplier for clarification and to have your advance adjusted when you are on a variable contract. To avoid disappointment, Houtman gives a good tip: "Don't be tempted by a low advance payment, but when you receive a proposal always look at the price for a full year."

If you do not agree with the proposed advance, you can challenge it citing your reasons within the first 15 days. The supplier is also not allowed to simply assume how much you will consume, based on previous consumption, e.g. a previous harsh winter. If the supplier refuses to accept your objections, the company must give its reasons.

4. Tacit extension or renewal?

Many consumers assume that their contract is tacitly extended and that the terms and conditions remain the same. "But this is not always the case. Often the contract is renewed, and then the supplier may change the terms and conditions."

"If there is a contract renewal, the supplier must inform you about it at least two months before the end of the contract. The company even has to ask your permission to renew the contract."

5. What about social rate?

Are you entitled to the social tariff? "Then stay where you are and don't change suppliers," advises Houtman. "The social tariff is the same from every supplier and switching can only add extra hassle."

After all, you are already getting the lowest price on the energy market.

6. What about additional services such as smart thermostats and maintenance?

Additional services you have to cancel separately. "The supplier must inform you at the start of the contract that when you cancel the energy contract, you can also give notice for the additional services. The company must also clearly explain to you what the conditions are when you cancel. For example, you will have to continue paying off a smart thermostat according to a defined payment plan when you leave early."

But there is a gap in the regulations: "If you change supplier, the supplier is not obliged to point out to you that you still have a contract running for additional services. Some people cancel their energy contract but forget to cancel the other services which means they continue to pay for them," says Houtman. The ombudsman is calling for suppliers also to be obliged to provide the information about the termination of these contracts when you switch. In that way, you immediately get an overview of the other ongoing maintenance contracts.

7. Beware of salespeople at the door or on the phone

The ombudsman is no fan of door-to-door sales or telephone sales. "It is an aggressive way to sell energy contracts, but it is not prohibited".

Houtman stresses that you always have a two-week “right of withdrawal” from the moment you get notice that you are connected to the new supplier. If you cancel, do so in writing and state very clearly that you are cancelling the agreement.