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Please note: The algorithm descriptions in English have been automatically translated. Errors may have been introduced in this process. For the original descriptions, go to the Dutch version of the Algorithm Register.

Algorithm subsidy scheme Energy Cost Contribution (TEK)

The algorithm is used to perform automated risk assessment for all Energy Cost Contribution applications, prior to automated or manual granting and payment of the advance.

Organisation
Netherlands Enterprise Agency
Theme
Economy
Status
In use

General information

Name

Algorithm subsidy scheme Energy Cost Contribution (TEK)

Short description

The algorithm is used to perform automated risk assessment for all Energy Cost Contribution applications, prior to automated or manual granting and payment of the advance.

Organisation

Netherlands Enterprise Agency

Theme

Economy

Status

In use

Begin date

04-2023

Contact information

Via contactformulier: https://www.rvo.nl/onderwerpen/contact/formulier

Publication category

High-Risk AI-system

Responsible use

Goal and impact

With the deployment of the algorithm, decision making is accelerated so that as many entrepreneurs as possible can receive grants on time. The algorithm speeds up the decision-making process for awarding a grant, and it provides risk guidance for the manual flow.

Considerations

The use of the algorithm in TEK applications ensures that entrepreneurs' applications can be processed quickly and efficiently. Most of the entrepreneurs have the money in their accounts quickly. When an application fails to manual check, an employee has to assess the application. In that case, it takes longer for a decision on the allowance to be made, resulting in the money being in the entrepreneur's account later

Human intervention

The risk model determines the qualitative and quantitative risk of each application; those factors together form the overall risk category. In case the algorithm identifies an application as high risk, it falls out to a manual check by a staff member. For example, because the amount is high, the application is incomplete, or there is evidence of abuse or improper use. The application is then prepared for human review. The algorithm gives advice to the employee on what to look out for, such as data that is incomplete or contradictory. This can be useful: the advice helps the clerk get a quick picture of the situation. The clerk then reviews the entire application. The clerk can then approve or reject applications, possibly after a further request for information. A negative decision (no grant or lower grant) therefore does not follow from the risk model but always from an employee's assessment. In case of deviation from the customer request and for subsidy amounts above a certain limit, this is always done through the four-eye principle.

Risk management

The risk model is submitted for approval to an interdepartmental advisory committee (rolling review), which advises the general director RFO on the application of the risk model. Only after they advise positively on the use of the algorithm (or a change to it) will the algorithm be put into use.

In addition, the technical operation of the algorithm is extensively tested, both at the time of commissioning and in the interim.

Legal basis

The algorithm will be used for tasks under the Energy Cost Contribution Scheme.

Links to legal bases

Wettelijke grondslag: https://wetten.overheid.nl/BWBR0047926/2023-03-21/0

Elaboration on impact assessments

DPIA has been carried out

Operations

Data

The algorithm uses data on turnover, energy consumption, energy connections, Chamber of Commerce data and data from the entrepreneur's own application.

Technical design

RFO deploys an algorithm to support the assessment of applications from entrepreneurs. This algorithm tests whether an application meets the conditions set by the minister. This is done using a risk model: when an application arrives at RFO, an estimate is made as to whether the entrepreneur is actually entitled to the allowance.

Here, for example, RFO compares the applicant's declared information with other data, such as VAT declarations at the Tax Administration and consumption values at the grid operators.

An application is automatically approved if the algorithm classifies the application as low risk, for example because the amount claimed by the applicant is low and there are no indications of abuse or improper use. In that case, no more employee is involved.