Five Dutch energy suppliers have pledged to improve the way they inform customers about cancellation fees after pressure from the consumer watchdog ACM.

The Autoriteit Consument & Markt launched an investigation into six energy companies following complaints. The watchdog found that suppliers were not always correctly applying or communicating the rules on early termination fees.

Greenchoice, Essent, Clean Energy, Innova Energie and Mega Energie cooperated with the investigation and agreed to take immediate steps to improve their practices. Customers who were charged the wrong fees have also been refunded to the tune of some €230,000.

The ACM said it is continuing its investigation into a sixth energy supplier and said it will take enforcement action if necessary. The company’s name will be made public if sanctions are imposed.

Energy customers who end a fixed contract early are often charged a fee, which should reflect the actual costs incurred by the supplier, but suppliers are supposed to inform their customers about the fees so they can rethink.

The ACM said several companies had failed to meet these requirements. “It’s often unclear to customers whether they have to pay a cancellation fee,” ACM board member Manon Leijten said. “That can make people hesitant to switch suppliers.”