$900 million in electricity bill savings available to households

Electricity prices have fallen almost 9 per cent since the middle of last year and there is $900 million in potential savings for households in eastern and southern states, new figures released today by the ACCC show.

Retail electricity offers now available to households in New South Wales, Victoria, South East Queensland, South Australia and the Australian Capital Territory are, on average, 8.8 per cent lower than they were in June 2020, which equates to an average annual household saving of $126.

Opportunity for energy savings must not be wasted

The current period of structural upheaval in Australia’s energy sector provides an opportunity for more affordable energy and it should not be wasted, ACCC Chair Rod Sims said today.

In relation to electricity, Mr Sims noted that the focus on reliability and sustainability need not, and therefore should not, come at the expense of affordability.

“We must make sure that consumers and businesses are not wearing increased costs as a result of them being required by governments to take on risk which sits better with private investors,” Mr Sims said.

Origin Energy pays penalty for allegedly misleading electricity customers

Origin Energy has paid a penalty of $126,000 after the ACCC issued it with an infringement notice for an alleged false or misleading representation in a price increase letter sent to residential electricity customers in Victoria.

In the letter, Origin told customers on market offers that its electricity prices were changing, and represented that the reason for the change was the Victorian Essential Services Commission’s increase to the Victorian Default Offer.

Efficient infrastructure key to economy beyond the COVID-19 crisis

Efficient infrastructure is integral to rebuilding the economy beyond the pandemic but cannot come by excessively focussing on the needs of infrastructure owners at the expense of the users, ACCC Chair Rod Sims said today.

Mr Sims was speaking at the Australian Financial Review’s National Infrastructure Summit on competition issues in infrastructure and changes since COVID-19.

iSelect to pay $8.5 million for misleading consumers comparing energy plans

The Federal Court has ordered iSelect Limited to pay $8.5 million in penalties for making false or misleading representations about its electricity comparison service.

iSelect admitted that, between November 2016 and December 2018, it misled consumers by representing on its website that it would compare all electricity plans offered by its partners and recommend the most suitable or competitive plan, when this was not the case. During the period, hundreds of thousands of consumers visited the website.

Sumo Power allegedly misled consumers about electricity pricing

The ACCC has instituted proceedings in the Federal Court against Sumo Power Pty Ltd (Sumo) alleging it made false or misleading representations to Victorian consumers in relation to its electricity plans.

It is alleged that between June and November 2018, Sumo promoted 12-month electricity plans with low electricity rates and large ‘pay on time’ discounts of up to 43 per cent to residential consumers, while planning to substantially increase the prices charged to those consumers who signed up within a few months, or knowing it was likely to do so.

Locality Planning Energy pays penalty for alleged breach of Electricity Retail Code

Electricity provider Locality Planning Energy Pty Ltd (LPE) has paid a penalty of $10,500 after the ACCC issued it with an infringement notice for an alleged contravention of the Electricity Retail Code.

This is the first enforcement action taken by the ACCC for a breach of the Code.

The Code was introduced in July 2019 to reduce confusion and make it easier for consumers to compare retail electricity offers. It imposes rules on electricity providers for how they must advertise prices and conditions on market and standing offers.

Guidelines will assist industry to comply with new laws

New guidelines, published by the ACCC, will assist electricity retailers and generators to comply with laws aimed at protecting consumers and businesses from excessive electricity prices.

The laws prohibit electricity retailers from keeping consumer and small business prices unnecessarily high when costs fall, and prohibit generators from inflating wholesale prices or blocking access to critical contracts, which could increase retail prices. The laws will form part of the Competition and Consumer Act and come into effect on 10 June 2020.

Guidelines on Part XICA - Prohibited conduct in the energy market

These guidelines set out how the ACCC will interpret Part XICA of the Competition and Consumer Act 2010 (Cth) (CCA) and they explain the general approach the ACCC will take in investigating alleged contraventions of Part XICA. They include a number of examples of the types of conduct that the ACCC considers are likely or unlikely to contravene Part XICA.