Electricity retailers CovaU Pty Ltd and ReAmped Energy Pty Ltd have each paid $33,300 in penalties after the ACCC issued each retailer with three infringement notices for alleged contraventions of the Electricity Retail Code.
The ACCC alleges that when sending information to customers about price changes to their electricity plans last year, CovaU and ReAmped each failed to include information required under the Electricity Retail Code that is intended to help customers compare different retailers’ prices.
“The Electricity Retail Code requires retailers to provide detailed information to consumers about pricing, to allow them to compare electricity plans and make informed decisions about the best deal for them,” ACCC Commissioner Liza Carver said.
“Providing the required information is essential, particularly in the current economic environment when consumers need confidence to switch providers to save money as rising energy costs and cost of living issues hit households and small businesses. We will continue to closely monitor the retailers to ensure that customers have the right information.”
It is also alleged that in the communications which CovaU sent to residential and small business customers in NSW, South Australia, and South East Queensland on 30 May 2022, CovaU failed to state the percentage difference to the comparison price set by the government.
CovaU has previously paid penalties following the issue of infringement notices for alleged contraventions of the Electricity Retail Code and the Australian Consumer Law.
“We are very concerned that CovaU continues to come to the ACCC’s attention for allegedly failing to comply with the code,” Ms Carver said.
“As a result of these concerns, CovaU has also provided us with a court-enforceable undertaking, committing to inform impacted consumers of the most recent issue, implement a compliance program and to include all required information in future correspondence to customers. There are serious consequences for breaching such undertakings.”
Separately, the ACCC alleges that ReAmped sent communications which did not include certain information required under the code to residential and small business customers in NSW, South Australia and South East Queensland on 9 May and 9 June 2022.
The ACCC issued three infringement notices to each retailer in relation to communications sent to customers in NSW, South Australia, and South East Queensland respectively.
Background
CovaU and ReAmped are electricity retailers operating in Australia that supply electricity to residential and small business customers.
The Electricity Retail Code was introduced in 2019 to reduce confusion and make it easier for consumers to compare retail electricity offers.
Under the Electricity Retail Code, electricity retailers must include certain information when communicating prices to residential and small business customers including the percentage difference to the comparison price
The AER and the ACCC work together closely to monitor the retail electricity market and enforce consumer protection requirements under these relevant laws and regulations.
The ACCC enforces compliance with the Electricity Retail Code and the Australian Consumer Law under the Competition and Consumer Act. The AER enforces the National Energy Retail Law and Rules in Queensland, New South Wales, the Australian Capital Territory, Tasmania and South Australia, which contain specific protections for energy customers.
In May 2023, the ACCC and the Australian Energy Regulator issued a Joint Compliance Bulletin, reminding retailers of their obligations about communicating pricing changes to their customers.
In July 2019, CovaU paid penalties of $12,600 following the issue of an infringement notice by the ACCC for alleged misleading claims about discounts available on their energy plans in breach of the Australian Consumer Law; and in January 2022, CovaU also paid penalties of $33,300 following the issue of an infringement notice by the ACCC for allegedly failing to include the percentage difference to the comparison price in website communications, as required by the Electricity Retail Code.
The ACCC also issued infringement notices to electricity retailer Locality Planning Energy for alleged contraventions of the code in July 2020.
Note to editors
The payment of a penalty specified in an infringement notice is not an admission of a contravention of a mandatory industry code or the Australian Consumer Law.
The ACCC can issue an infringement notice when it has reasonable grounds to believe a person or business has contravened certain provisions in industry codes.