ACCC has instituted court proceedings against Click Energy

Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on facebook
Facebook

The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court of Australia against Click Energy alleging it made false and misleading marketing claims about discounts and savings that customers in Victoria and Queensland could obtain.

Click Energy - Federal Court of AustraliaPhoto of the Oar Mace of Admiralty from the Federal Court of Australia website.

By Anne Wardell, Regulatory Specialist, Compliance Quarter.

The breaches are alleged to have occurred from around October 2017 to March 2018 and involve a representation by Click Energy that customers could obtain discounts of between 7 and 29 per cent off Click Energy’s bill if they paid their bills on time. The problem with the offer was that the discounts offered applied to market offer rates which varied and were higher than the standing offer prices. Allegations were also made in relation to savings which would be available if the customers switched.

In announcing the action Mr Rod Sims, ACCC Chair said:

‘When compared with Click Energy’s standing offer rates, the discounts were much lower than advertised. In some cases, there was no discount at all.

The advertised savings were based on the amount a consumer could save with Click Energy by paying on time, and not on any estimate of savings a consumer switching from another retailer would obtain.

We believe that Click Energy’s conduct is among the worst practices we see in retail electricity marketing. We allege that consumers were misled about discounts and savings, with some consumers not getting any discount or savings at all.

The retail electricity market is too complex and opaque. Customers need to trust that discounts and savings advertised by retailers are accurate so they can make informed choices about which products are best for them’.

Further information is available on the ACCC Media releases page, ACCC takes action against Click Energy for misleading savings claims.

If you’d like to discuss any aspect of this article with our team, please click here to get in touch.

More to explorer

ESC Review of the Payment Difficulty Framework

In January 2019, the payment difficulty framework commenced in Victoria to ensure that disconnection for non-payment is a last resort and that vulnerable customers are supported to pay for their energy usage. After two years of operation, the payment difficulty framework remains the most stringent customer protection framework in the country and has been considered a success by the Essential Services Commission (ESC). Now the ESC has commenced a review to evaluate and assess the operation of the framework in

Checking bills

Opportunity to shape energy bills of the future

On 2 September 2021, the AER has made a call for submissions on issues that will inform the AER Bill Contents and Billing Requirements Guideline (Guideline). Submissions are due by Wednesday, 22 September 2021.

The purpose of the Guideline is to provide retailers with guidance on preparing and issuing bills to make it easier for residential and small customers to understand billing information. The Guideline is a further step in the AER Strategic Plan 2020-2025 to improve consumer outcomes.

modern building with airplane against a blue sky

An Embedded Network (Guideline) Refresher

If you own, operate or control a private embedded network, you will need to ensure that you hold the exemptions you require. In all of the Eastern States of Australia, this will mean that you will need a network exemption issued pursuant to the AER’s Electricity NSP Registration Exemption Guideline (Network Exemption Guideline). In this post, we answer some of the most common questions when it comes to embedded networks that are regulated by the Network Exemption Guideline.

Leave a Reply

Your email address will not be published. Required fields are marked *