Origin Energy will refund over $270,000 to more than 4,500 customers after an ACCC investigation into allegedly misleading representations regarding Origin’s “Ongoing Saver” residential electricity plan.
The ACCC was concerned that Origin made statements both in the Ongoing Saver plan’s terms and conditions and in customer bills that represented charges would be lower than on Origin’s “Basic” plan for the life of the plan. In fact, some customers on Ongoing Saver plans were charged more than they would have been on the Basic plan.
The ACCC’s investigation into Origin formed part of its actions in response to CHOICE’s designated complaint about energy retailers falsely representing savings or value to consumers on certain energy plans.
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“Electricity retailers that claim or suggest savings for consumers on their plans, including in the name of the plan, must ensure that the savings are actually delivered to customers for the life of the plan,” ACCC Commissioner Anna Brakey said.
“Energy plans are complex, and the mix of usage and supply charges makes it difficult for many consumers to assess potential savings. Retailers should provide clear and accurate information about their plans to help consumers make informed decisions.”
Origin has not admitted to breaching the Australian Consumer Law but, in response to the ACCC’s concerns, has committed to providing refunds to customers.
Affected customers will, on average, receive approximately $60 in remediation from Origin.
Origin will contact these affected customers to arrange a credit or a refund. Current Origin customers will be given the option of requesting a refund or an automatic credit, and former customers will be contacted by Origin about a refund.
The ACCC urges affected Origin customers to be aware of scammers claiming to be from Origin. Communications from Origin will not ask for credit card or banking details. If in doubt about the authenticity of any communications purporting to be from Origin, consumers should contact Origin through an independently sourced phone number or email address.
As well as refunding affected customers, Origin will not use plan names that suggest savings or monetary value unless they are built into the plan. Origin will also discontinue its Ongoing Saver plan.
The ACCC has urged consumers to shop around for cheaper electricity prices.
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“We strongly encourage all consumers to use available government energy comparison sites to try to find the best available energy deal for their circumstances, as there are large differences between the cheapest and most expensive plans,” Brakey said.
Consumers should compare their current energy rates on the government comparison sites energymadeeasy.gov.au for consumers in New South Wales, South Australia, Tasmania, the Australian Capital Territory and Queensland, and compare.energy.vic.gov.au for consumers in Victoria.
Consumers can also call their existing retailer and ask for a better deal. Retailers are legally required to provide this information, as well as information about how the price of an existing plan compares to the regulated safety net price.
