EnergyAustralia fined over $1 million for giving customers incorrect information about its best energy deals

EnergyAustralia has been penalised $1,066,986 for allegedly giving over 150,000 customers incorrect information about its best energy deal in communications about price changes.

The penalty comes less than a month after EnergyAustralia entered an enforceable undertaking to provide a $1.2 million customer remediation package following alleged failures to inform struggling customers of their payment assistance entitlements.

The Essential Services Commission alleges EnergyAustralia informed customers they were on its best plan when it had cheaper energy plans available. This denied customers the opportunity to switch to a cheaper plan and save money.

On average, affected customers could have saved approximately $56 per year by switching to EnergyAustralia’s best offer.

If all impacted customers had taken up the best offer, they could have saved approximately $8 million collectively.

In Victoria, energy retailers must include information about their best offers on:

• all communications about price changes
• customers’ energy bills – every three months for electricity bills and every four months for gas bills.

The alleged conduct happened between March 2022 and August 2024.

Quotes attributable to Essential Services Commission Chairperson and Commissioner Gerard Brody

“EnergyAustralia is one of Australia’s largest energy retailers and should have systems in place to comply with energy rules. To be issuing this penalty so soon after its previous breach, which also cost customers the chance to save money, is a real concern.”

“With the current cost-of-living pressures, it’s more important than ever that retailers provide customers with clear, timely information to help them make informed decisions that will save them money.”

“Victoria’s energy market has some of the nation’s strongest consumer protections. EnergyAustralia again failed to uphold these safeguards, and the penalty reflects the seriousness of this conduct.”

Background

Best offer messaging

An energy retailer’s best offer is typically the cheapest, generally available offer and does not include one-off gifts or sign-up credits. It’s based on how much energy a customer has used over the past year.

Upcoming changes to energy rules

From July 2026, energy retailers must ensure customers who have been on the same plan for more than four years are paying a reasonable price or move them onto a cheaper offer if they are not. This change is part of a wider suite of changes to Victoria’s energy rules to ensure costumers doing it tough get the best price and stay connected, and to tackle the energy market’s ‘loyalty tax’.