EnergyAustralia failed customers on lowest price information: ACCC
Big retailer EnergyAustralia is facing millions of dollars in potential fines after the corporate regulator alleged it failed to provide simple price information to customers so they could compare offers with other providers.
The Australian Competition and Consumer Commission announced on Friday it had taken legal action EnergyAustralia, a wholly-owned subsidiary of the Hong Kong-based energy company CLP Group.
EnergyAustralia, the third-largest energy retailer in Australia after AGL Energy and Origin Energy, apologised to its customers on Friday, but the ACCC is still seeking remedies including financial penalties which could run into millions of dollars.
The regulator accuses EnergyAustralia of not giving customers the right price information. Paul Jones
ACCC chairwoman Gina Cass-Gottleib said the court action was the result of an audit of energy companies last year to ensure they were meeting their obligations under the Electricity Retail Code.
It is the first litigation the corporate regulator has taken against a large energy retailer.
“EA is one of our largest retailers and we do expect larger companies to invest in systems so they can comply,” Ms Cass-Gotleib told AFR Weekend.
The Australian Energy Regulator has moved to force energy retailers to simplify their bills as households deal with soaring power prices, but Ms Cass-Gotleib said trying to make sense of energy bills was often a frustrating experience for customers despite increased auditing and new guidelines.
“We think it’s still very complex when you look at the material,” Ms Cass-Gotleib said.
“The object of the code is to achieve transparency and to allow consumers to easily compare offers and which offers represent the best deal for them.”
The ACCC has
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