All about security deposits for energy contracts
In some cases the energy supplier asks new customers for a deposit. The deposit is meant to limit the credit risk. Whether a deposit is asked for, and how much it is, differs per energy supplier, so compare carefully!
When someone enters into a new energy contract with an energy supplier, this energy supplier can ask for a security deposit. The energy supplier does this in principle because there is a payment risk, for example because there are still unpaid bills from the previous energy supplier or because the new customer has debts.
01Different reasons for a security deposit
De most energy suppliers automatically engage a third party or research agency to check the credit risk of new customers. The privacy terms will then always state that the energy supplier has the right to transfer personal data for this reason.
This method sometimes attracts criticism. After all, such agencies often base themselves on outdated data and do not know well what the current situation is. Debts may meanwhile have been neatly repaid or the income stream may meanwhile be back on track, while they still sound the alarm. Unfortunately, there is rarely much that can be done about this.
With some energy suppliers, a security deposit is also requested when there are no signals pointing to money problems. With an urgent application, where it is often not possible to carry out an investigation, a security deposit is in turn requested almost as standard. With a number of energy suppliers this is also the case when someone has previously, even years ago, had payment arrears with an energy supplier .
What is a security deposit?
A security deposit is not an extra cost for the new customer, but a guarantee. This means that in principle the deposit is not used. After paying the deposit, there are therefore simply instalment bills and the annual bill. Only if there is later non-payment will the energy supplier use the security deposit. As a result, the security deposit offers the energy supplier extra certainty. In the meantime, the security deposit therefore remains the property of the customer. Should the customer die, this security deposit forms part of the estate.
Amount of the security deposit
Each energy supplier chooses for itself whether it imposes a security deposit and how large this security deposit is, but of course this will be included in the energy contract and agreed by mutual consent. It is usually also stated that the energy contract only starts when the security deposit has been received, but some energy suppliers do make an exception for urgent connections. Then it may, for example, suffice to provide proof of payment.
Just as the method can sometimes differ greatly, this also applies to the amount of the security deposit. Many energy suppliers ask for a deposit that ranges between 200 and 500 euros, but there are also energy suppliers that ask for security deposits of up to 1.000 euros. The deposit will often be higher if electricity and gas are purchased from the same energy supplier. In any case, the amount of the security deposit is not determined nationally and energy suppliers can decide this themselves.
Below are the security deposits at the main Dutch energy suppliers. Below you can also read how quickly an (urgent) application can be handled. In each case, the security deposit must first have been transferred before it is possible to become a customer. Do bear in mind that the energy supplier that asks for the lowest security deposit is not automatically the best or most advantageous energy supplier.
Getting the security deposit back
The refund of the security deposit can also be arranged completely freely. With many energy suppliers, the security deposit is returned with the annual or final bill. However, there are also energy suppliers that apply different rules and return it earlier. Even after switching early and paying the cancellation penalty the security deposit is simply released again.
With most energy suppliers, you receive half of the statutory interest in addition to the security deposit. As a result, you get back slightly more than the security deposit paid.
If there are ultimately arrears, these are charged against the security deposit. This concerns both unpaid annual bills and unpaid interim bills. However, bear in mind that not only such matters can be charged, but also administrative costs and collection costs. In addition, the terms and conditions of the energy supplier sometimes state that a cashback discount granted must be repaid if even one bill has not been paid on time. In such a case, this can also be deducted from the security deposit.
02Finding energy suppliers without a security deposit
The fact is that each energy supplier sets its own limits. So it may be that one energy supplier finds a security deposit appropriate while with another energy supplier it is possible to become a customer without a security deposit. This makes it even more important for those with debts to compare different energy suppliers with each other.
Many energy suppliers do have special rules for people under financial administration. They then do not ask for a deposit. For them they have worked out specific procedures in which the administrator has to complete a number of formalities. Administrators often know very well which energy suppliers are very flexible and turn to them almost as standard. However, this does not yet mean that this is also the most advantageous solution.
03Contacting the energy supplier
Anyone who feels that a security deposit is being imposed unjustly, for example because the external research agency uses outdated data, should first contact the energy supplier. Ask them to state clearly what the reason for the security deposit is. On the basis of this information it is possible to determine the next steps. This step is important because mistakes with major consequences are sometimes indeed made, for example because someone has the same name or because a previous occupant had debts.
04Filing a report with the Autoriteit Persoonsgegevens
Contact the Autoriteit Persoonsgegevens →
Because it concerns personal data, the GDPR applies. This states that you have a right of access, but also the right to correct incorrect data. That is why an energy supplier must cooperate. If they do not do this, it is advisable to contact the Autoriteit Persoonsgegevens. In this way it may still be possible to adjust incorrect data (or have it adjusted).
05Having a new assessment carried out
It is also possible to simply ask the energy supplier for a new assessment. In that case, more recent data is submitted than the data used by the research agency. Think, for example, of proof that a certain debt was already paid off three years ago. However, a new assessment does not mean that the decision of the energy supplier will differ.
06Report to the ACM
If the new energy supplier still unjustly continues to insist on the security deposit, this can be reported to the ACM. In the meantime, it is advisable to also make enquiries with other energy suppliers. They may not ask for a security deposit or ask for a lower one. A disadvantage of this is that it is therefore not always possible to choose the most advantageous energy supplier.
07Step-by-step plan for an unjustified security deposit
If you feel that a security deposit is being requested unjustly, it is possible to take action against it. Above all, it is important to discuss the situation with the energy supplier, but there are also options beyond that.
08Frequently asked questions about the deposit for energy
We understand that such a security deposit can raise questions. It does not always feel fair and it actually increases the financial pressure on someone who is already having a hard time. Below, a number of frequently asked questions are answered.
Some external research agencies also take the postcode area into account in their assessment. If many people in a certain postcode area have debts, this is taken into account in the assessment. They then reason that there is a local deprivation problem that probably also affects the person investigated. Such a regional score will in principle not be the only reason to demand a security deposit, but it can mean that even limited debts weigh heavily. A number of energy suppliers have already indicated that they will no longer take such regional scores into account.
What does the regional score in a credit check involve?
With many research agencies this is free, but there are also research agencies that charge a fee. Much depends on the research agency the energy supplier works with.
I want to have a reassessment carried out. Is this free?
This cannot be said in advance. In principle you then have a claim against the energy supplier. The trustee must then sell the assets and pay the creditors. It is not impossible that customers lose their security deposit, but the same also applies to instalment amounts paid. There is in fact no emergency fund that helps consumers when energy suppliers go bankrupt, as does exist for banks.
What happens to my security deposit if the energy supplier goes bankrupt?
In principle the energy supplier is free in this. However, some energy suppliers have concluded an agreement about this with the Consumentenbond. For example, in 2013 Engie concluded an agreement stating that they would not ask for more than the price of six months of energy. Of course, energy suppliers must respect such agreements, just like their own general terms and conditions in which they can also include restrictions. Moreover, the ACM has previously indicated that a deposit must always be reasonable. According to the ACM, a deposit of six months is only permitted in exceptional situations. This can therefore to some extent be used as an upper limit.
How much may the security deposit be?
This can be read in the general terms and conditions. The ACM does supervise this, and in principle the intention is not that the security deposit is immediately called upon for small arrears or short delays.
What may the energy supplier use the security deposit for?
Work out the monthly amount with your usage and feed-in.