21-05-2025
Energy retailers accused of misleading customers with 'sneaky' price tactics in landmark complaint lodged to ACCC
Consumer watchdog CHOICE has lodged a "super-complaint" with the ACCC targeting Australia's energy retail sector.
In July 2024, CHOICE, alongside the Consumer Action Law Centre and the Council of Small Business Organisations Australia, was recognised by the federal government as one of the first organisations in Australia authorised to file a 'designated complaint'- a grievance similar to the UK's 'super complaint' - with the Australian Competition and Consumer Commission.
The consumer watchdog argues energy retailers' "complicated and confusing" price tactics are the 'stuff of nightmares' and are intended to keep people 'as confused as possible.'
The action marks the first designated complaint from CHOICE and only the second example of this kind of action in Australian history.
The 'super-complaint' flagged concerns over 'potentially misleading' tactics, namely advertisement of new plans that are cheaper yet have an identical name, suggesting customers who were under the impression they were already on the best deal are unknowingly stuck with a higher price.
Ahead of lodging the complaint, CHOICE reviewed 382 energy bills issued between January and March 2025, 64 of which advertised a legally required 'best' or 'better offer' with the same names as the ones customers were already on.
CHOICE CEO Ashley de Silva said customers were led to believe they were already on the best plan because of the duplicate names.
'Across these 64 examples, people could have saved an average of $171 annually had they switched to the cheaper plan, even though it had the same name. The highest potential savings amongst these examples was $588 per year," Mr de Silva said.
"The potential impact of this practice is significant. CHOICE estimates that reusing identical names for plans with differing prices could, in aggregate, be costing consumers approximately $65 million in savings.'
A 2024 review by the ACCC found that 81 per cent of consumers could have saved money by switching offers.
"It shouldn't be this hard to know if you're being ripped off on your energy bill," Mr de Silva said.
"We're calling on the ACCC to enforce the law with strong court action to put an end to these dodgy practices costing consumers money."
In addition to the identical names, CHOICE has urged the ACCC to probe whether energy retailers are breaking the law by using names and descriptions that imply savings for poor-value plans, as well as encouraging consumers to switch to plans the customer is not eligible for.
"CHOICE can only submit one designated complaint each year, and much like the Shonky Awards, we only use it for the most serious issues we see. We are calling on the ACCC to urgently investigate these sneaky tactics used by energy retailers to confuse and potentially mislead consumers," Mr de Silva said.
The ACCC must publicly respond to the complaint within 90 days.
