Energy company to compensate customers after adverse ACCC finding

AN energy company has been forced to compensate customers after the consumer watch dog found their ads made “misleading” comparisons. Here’s how you could be refunded.

THOUSANDS of Victorians will be compensated after the consumer watch dog ruled an energy company likely misled customers about price comparisons.

Alinta Energy’s advertising campaign — which ran between 9 December and 28 February 2018 in print and on radio — compared increases in its competitors’ standing tariff rates to decreases in its own discounted rates.

The Australian Competition and Consumer Commission found this “gave a false impression of … price reduction” because it was not a reasonable or like-for-like comparison.

During the review, Alinta also admitted that the reduction figure of 2.8 per cent was miscalculated and the company’s standing tariff rates were 1 per cent lower than advertised.

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Alinta will honour the advertised price reduction for customers who choose to continue with their plan.

ACCC Acting Chair Delia Rickard said the conduct prevented customers from making informed choices when decided which energy retailer to sign up to.

“Businesses must not mislead consumers in advertisements comparing their prices or services to those offered by competitors,” Mr Rickards said.

As a result of the ACCC’s investigation, Alinta immediately ceased its advertising campaign and has promised to compensate all affected customers.

Alinta will honour the advertised price reduction for customers who choose to continue with their plan, Mr Rickard said.

A spokesman for Alinta said the company had worked quickly and proactively with the ACCC to address the error and concerns surrounding the advertisement.

Alinta Energy’s Executive Director of Retail Markets Jim Galvin apologised to affected customers.

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“We remain absolutely committed to making energy more affordable for you, and recognise our communication should have been clearer and error-free,” Mr Galvin said.

The energy retailer’s commitment to honour the 2.8 per cent tariff price reduction will be provided through credits backdated to 12 January to 11 July 2018.

Adjusted rates will apply from 12 July for the next six months.

Staff at Alinta will receive a refresher in consumer law and the company will review its advertising processes in line with the ACCC action.

Anyone who has been affected is urged to contact Alinta on 133 702.

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