Minister announces new rules to punish shifty electricity deals

THE Federal Government is cracking down on dodgy power deals as news emerged of a “discount” offered by a major energy retailer­ that cost families nearly $100 more each year.

Energy Minister Josh Frydenberg says a $20,000 fine will apply for companies that rip off customers by advertising dodgy deals.

A “DISCOUNT” power­ deal offered by a major energy retailer­ actually cost families nearly $100 more each year.

The deal from Click Energy is one of the worst among a slew of dodgy special offers that are more expensive than the regular rate.

It comes as Energy Minister Josh Frydenberg has unveiled a new rule and $20,000 fine per connection for companies that rip off customers this way.

Mr Frydenberg said the new rule would “prevent retailers from attempting­ to confuse consumers”. Picture: Gary Ramage

The Daily Telegraph can reveal­ the offer from Click Energy, owned by the publicly listed Amaysim, was more than 1c dearer for every kilowatt hour and 3c dearer for a daily connection compared­ with the company’s regular price.

It equates to about $1.80 more per week for an average family, at a time when NSW households are already struggling with skyrocketing electricity bills.

The offer was still available to customers as late as March.

Another offer by the same company in Queensland, known there as Click Opal, was 3c more expensive per kilowatt hour, price sheets obtained by The Daily Telegraph show.

The new rule now means no retailer can advertise or claim a “price discount”.

Mr Frydenberg said the new rule, which came into effect this week following an Australian Energy Market Commission ruling, would “prevent retailers from attempting­ to confuse consumers, providing them with confidence that a discount is exactly that — a discount”.

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“Big discounts ... can seem very attractive but if the discount is only available­ because the price of energy is artificially inflated, the consumer can end up worse off,” Mr Frydenberg­ said.

The commission also proposed Mr Frydenberg and his interstate counterparts allow regulators to hit companies with a $20,000 penalty per customer signed up to a dodgy discount scheme. Currently, penalties are either voluntary or require court action.

Major electricity companies including Origin and Energy­Australia have argued against the proposal, saying existing laws are enough to deal with dodgy discount deals.

The new rule now means no retailer can advertise or claim a “price discount” if there is an existing equivalent or cheaper rate available.

Click did not respond to ­requests for comment.

Another retailer, 1st Energy, charged about 2c more per kilowatt hour and 1c extra every day for a connection fee — or about $67 per month for an average household — but offers a 28 per cent discount if a bill is paid on time.

1st Energy could not be reached for comment.