EnergyAustralia has been ordered by the Federal Court to pay $14 million in penalties for making false, misleading or deceptive statements to consumers about electricity prices. The company admitted to breaching the Australian Consumer Law and the Electricity Retail Code in communications sent between June and September 2022 to approximately 566,000 consumers.

EnergyAustralia failed to state the lowest possible price in the communications and misrepresented the estimated annual price of its electricity offer for an 'average' customer. From July to September 2022, the company published 27 electricity offers online that failed to state the difference between the reference price and the unconditional price expressed as a percentage of the reference price, or the 'lowest possible price', as required under the Code. These offers were viewed about 220,000 times.

"EnergyAustralia breached laws which were designed to help consumers to compare electricity offers and identify the best deal by increasing transparency," said ACCC Chair Gina Cass-Gottlieb. "EnergyAustralia's failure to fully inform consumers meant they could not accurately compare offers from competing retailers and may have been denied the opportunity to choose the best deal for them."

"Some consumers may also have been misled by EnergyAustralia's statements into thinking that a price change was less than it actually was, causing them to stay with their existing plan when in fact a different plan may have represented a better deal," Cass-Gottlieb said.

The Court also ordered EnergyAustralia to review its compliance program and pay a contribution to the ACCC's costs. This conduct occurred at a time when electricity prices were rising and many consumers were looking to switch to cheaper plans.

"It is essential that electricity retailers provide consumers with accurate information so they can compare and access the most competitive prices in the market. This enforcement action is a reminder that the ACCC is closely monitoring the electricity market, conducting regular compliance checks and ready to take strong action when appropriate," said Cass-Gottlieb.