Blue NRG Pty Ltd

The Australian Competition and Consumer Commission (ACCC) has accepted a court enforceable undertaking from Blue NRG Pty Ltd (Blue NRG) in relation to misrepresentations made by Blue NRG that it could increase the price of certain electricity rates for fixed rate customers in likely contravention of sections 18, 29(1)(i) and 29(1)(m) of the Australian Consumer Law (ACL) in Schedule 2 of the Competition and Consumer Act 2010 (Cth).

Blue NRG is an energy retailer which provides electricity to approximately 13,380 businesses in Victoria, New South Wales, South Australia and Queensland.

The ACCC investigated allegations that Blue NRG engaged in misleading or deceptive conduct and made false or misleading representations by representing to 543 of its business customers in New South Wales and Queensland that it had the legal right to invoke a force majeure clause and therefore increase its electricity rates under fixed rate contracts in circumstances where it had no legal right to do so. Many of these customers were small businesses.

As a result of the ACCC’s investigation and in response to the ACCC’s concerns, Blue NRG has admitted that its conduct was likely to have contravened sections 18, 29(1)(i) and 29(1)(m) of the ACL. Blue NRG has provided the ACCC with a section 87B undertaking that it will:

• not increase any fixed electricity rates for the remainder of the term of the fixed-rate contracts and cease and refrain from making any representations that it has the legal right or power to increase fixed rates where it has no such right or power;
• compensate affected customers who left Blue NRG due to the price increase representations. In particular, Blue NRG will compensate former affected customers the difference in price between their new contracts with other providers and the original contract with Blue NRG for the remainder of the original Blue NRG contract term;
• establish and maintain a Competition and Consumer Compliance Program and conduct a compliance review, including providing training to senior management; and
• appoint an independent auditor to resolve any disputes between Blue NRG and former affected customers regarding compensation.