Energy retailers will be investigated for misleading consumers over energy plans in only the second probe under a new complaints framework.
Australian Competition and Consumer Commission (ACCC) Chair Catriona Lowe said the ACCC would investigate whether retailers were promoting energy plans that promised savings or value to consumers when they actually offered poor value.
Ms Lowe said the investigation was a result of CHOICE making a designated complaint to the ACCC, the first received from the consumer advocacy group and the second under the new designated complaints framework.
She said the ACCC was satisfied that the designated complaint made by CHOICE related to a significant or systemic market issue that affected consumers.
“Energy plans that promote ‘savings’ or value may entice many consumers to a particular plan and influence their decision making.
“We are concerned that consumers may be misled or deceived by plan names or descriptions of plans that offer ‘savings’ that are not genuine, or that consumers may be discouraged from switching to cheaper plans that are available to them.”
Ms Lowe said CHOICE’s designated complaint also raised issues in relation to consumer confusion from retailers’ use of identical names for plans with different rates and energy retailers prompting consumers to change plans when the recommended plan is not available to them.
She said these additional issues arose particularly in the context of ‘Better Offer’ and ‘Best Offer’ messages included on consumers’ energy bills.
“The issues raised by CHOICE exacerbate the challenges and confusion that consumers may face when navigating the often-complex energy market,” Ms Lowe said.
