Origin Energy Limited and two of its subsidiaries will have to pay a penalty of $325,000 after the Federal Court of Australia found the company guilty of making false or misleading representations concerning the discounts suggested as part of an energy plan.
In proceedings brought by the Australian Competition and Consumer Commission (ACCC), the Court held that Origin had contravened Australian Consumer law (ACL) by offering South Australian consumers discounts of up to 16 per cent on the company’s electricity usage charges if they signed on to a DailySaver energy plan. A discount of up to 12 per cent off Origin’s natural gas energy charges was also offered.
It was found that customers who took on the DailySaver energy plan were actually receiving discounts based off higher calculated usage charges. The rates used to calculate discounts were found to be higher than those under subsidiaries standard retail contracts.
ACCC Chairman Rod Sims said the fact energy bills placed a lot of pressure on Australian homes made customers more willing to accept special offers.
“Power bills place considerable pressure on household budgets. Energy plans featuring discounts are designed to attract consumers and do so because they are seen as providing an opportunity to ease that pressure,” Mr Sims said.
“Origin misled consumers about the level of discount they would achieve under a DailySaver energy plan – the key feature that would have attracted consumers to the plan.”
Apart from the $325,000 fine, the Court ordered Origin to publish a corrective notice in The Advertiser, notify all customers affected, and contribute towards paying part of the ACCC’s fees.