Origin Energy will discontinue its Ongoing Saver plan as part of the ACCC action. Photo: JHVE Photo.
Origin Energy customers overcharged while on the ‘Ongoing Saver’ residential electricity plan will be getting some money back after action from the consumer watchdog.
The ACCC started investigating energy retailers after receiving a designated complaint from the non-profit CHOICE alleging false representations of savings or value to consumers on certain energy plans.
ACCC Commissioner Anna Brakey explained the authority was concerned Origin made statements in the Ongoing Saver plan’s terms and conditions, plus on customers’ bills, that told people their charges would be lower than on Origin’s Basic plan.
In reality, some customers on Ongoing Saver plans were charged more.
“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,” Ms 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 does not admit it breached Australian Consumer Law but has committed to refund customers.
An Origin spokesperson apologised to those affected by this “mistake”.
“Around 4500 customers, or 0.5 per cent of customers on the plan, paid an average total of $28 more than they should have,” they said.
“We have since made improvements and are in the process of refunding these customers an average amount of around $60.”
In light of these remediation and compliance steps, the ACCC has decided to resolve the matter without taking further enforcement action.
CHOICE campaigns and communications director Andy Kelly said energy plans should not confuse customers.
“With so many households struggling to get by, consumers should be able to trust promises about savings or value made by energy companies,” he said.
“Our complaint highlighted four bills from Origin customers on its ‘Ongoing Saver’ plan who could have saved by switching to a different plan. The use of the term ‘saver’, in combination with the description that the plan was an ‘ongoing lower rate that you don’t need to renew’, may have led consumers to believe they’d be getting a better deal than other plans and didn’t need to worry about switching.
“The plans degraded in value for customers over time – yet another example of the energy ‘loyalty penalty’, which was at the core of our complaint.”
Mr Kelly said actions to address the accuracy and reliability of the information people received on their energy bills were the first step forward.
“There is more to be done. The unfairness of the loyalty penalty rife in the energy market cannot be ignored,” he said.
“CHOICE is calling on the government to introduce a new energy consumer duty, which would require energy retailers to deliver fair outcomes for consumers.”
People are encouraged to use available energy comparison sites to find the best deal for their circumstances, such as the government comparison site Energy Made Easy (for consumers in NSW, the ACT, Queensland, South Australia and Tasmania).
You can also call your 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.
Retailers are required to let customers know every 100 days (or every four months in Victoria) whether a better deal is available by including a statement on their bill.
An example of an Origin energy claim highlighted in CHOICE’s complaint. Photo: CHOICE.
Affected Origin customers will be contacted directly by the energy supplier to arrange a credit or refund.
People have been warned that scammers may use this announcement to falsely offer help in receiving their compensation.
“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,” a statement outlined.
“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.”
Origin will discontinue its Ongoing Saver plan as a result of this action and will not use plan names to suggest savings or monetary value unless those savings or values are built into the plan.
Original Article published by Claire Fenwicke on Region Canberra.
