The Australian Competition and Consumer Commission today reported on carbon pricing complaints and enquiries it has received about carbon price claims in the first 100 days since the commencement of the carbon pricing mechanism on 1 July 2012.
Since then, the ACCC has received close to 2,500 complaints and enquiries. The majority has come from consumers and small businesses seeking information or wishing to report concerns about carbon price claims made in the marketplace. The ACCC also conducted 50 initial investigations and 15 in-depth investigations.
In the same 100-day period the ACCC received over 43,000 complaints and enquiries, including these carbon related complaints. That is, six per cent of our total complaints related to carbon.
Average daily carbon complaint figures have dropped substantially from around 60 to 10 - 15 complaints per day, with daily numbers as low as four in recent weeks.
ACCC Chairman Rod Sims said “We ran an extensive education campaign in the lead up to the introduction of the carbon price mechanism and have quickly pursued some early compliance outcomes.
“The balance between education and the quick pursuit of early enforcement has helped to show business how to do the right thing. The low complaint levels certainly show that most businesses have acted in accordance with the law during the first 100 days of the carbon price mechanism. When they have not, we have contacted them quickly and worked with them to help them comply,” he said
During the first 100 days, a number of sectors stood out as attracting a larger number of complaints, including the refrigerants industry. The ACCC through the course of its investigation of these matters received one administrative resolution, with a further four anticipated, and one enforceable undertaking from air conditioning and refrigeration repair companies in relation to alleged false and misleading representations regarding the impact of the carbon levy on the price of refrigerant gas. The ACCC continues to work with the industry providing guidance to avoid making misleading statements.
The ACCC also issued over 40 formal and informal warning letters to traders in various sectors and sent out over 50 educative letters to traders providing them with information and guidance material about carbon price claims and the role of the ACCC.
Other public enforcement outcomes included a further enforceable undertaking accepted, one informal undertaking and one infringement notice paid.
Examples of representations addressed include:
- A regional Queensland medical practice increasing charges for facsimile messages that in the ACCC’s view were inappropriately linked to the carbon price.
- A New South Wales flying school raising tuition fees due to the carbon price with concerns over full attribution.
- A WA refrigerant gas supplier passing on price increases that in the ACCCs view may have attributed all the increase to the carbon price, when this was not the case.
Of the complaints received, over 40% have concerned the energy sector. This is to be expected given the most prominent effect of the carbon price has been on electricity prices. Complaints and inquiries have sought to confirm the price increases made by electricity retailers, and have asked about the accuracy of statements required to be placed on some bills by state legislation. There has also been a subset of complaints raising concern with the effect of the carbon price on electricity supplied under Greenpower contracts.
Mr Sims said, “While the impact of the carbon price may continue to raise concerns it’s still business as usual. Businesses are free to increase their prices as they see fit. However, claims made about the impact of the carbon price need to be truthful and have a reasonable basis.”
With first quarter electricity bills soon arriving, the ACCC expects an increasing focus on retail electricity carbon price claims, as well as CPI related price increases and air conditioning costs with the beginning of the warmer months.
The ACCC encourages consumers and businesses to be vigilant and report any suspect claim or where necessary seek further information from the ACCC.
To report a claim or for further information on the ACCC’s role in relation to carbon price claims and a range of associated publications for businesses and consumers, contact the ACCC.