The Australian Competition and Consumer Commission has authorised an industry code of practice for door-to-door energy sales undertaken by electricity and gas retailers. The authorisation is for a period of three years.
Energy Assured Limited was formed by electricity and gas retailers to develop a code regarding the conduct of sales agents when making house visits.
“The code is likely to benefit consumers in a number of ways through improving standards for doorstep marketing of energy. The code will also better inform consumers about their rights and sales agents’ obligations in door to door selling of energy.” ACCC deputy chair Peter Kell said.
“Requirements for the registration, accreditation, recruitment, training and monitoring of sales agents are likely to improve the conduct of sales agents working in the industry.”
"The ACCC notes that concerns have been raised by industry ombudsmen and consumer organisations about door to door marketing in the energy sector, so industry efforts to improve standards in this area are important to address market concerns."
The ACCC previously issued a draft determination proposing to deny authorisation of the code.
Since then, EAL has significantly revised the code and the ACCC now considers that the code is likely to generate a net public benefit.
The revised code is now consistent with laws applying to the door to door selling of energy, provides for appropriate sanctions on members for breaches of the code, improves the mechanisms for consultation with stakeholders, and includes a number of mechanisms to promote awareness of the scheme.
While the code is likely to result in public benefits, this will depend on how effective the code is in practice in areas such as improving consumer awareness and the conduct of sales agents. The effectiveness of the sanctions in the scheme, including the level of reporting on compliance by energy retailers, will be important in this regard.
The ACCC will look carefully at these elements of the scheme should Energy Assured seek reauthorisation of the scheme towards the end of the authorisation period in three years.
Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.
The final decision will be available on the public register on the ACCC website at www.accc.gov.au/AuthorisationsRegister.