Almost $800,000 (US$508,000) in penalties have been paid out by Australian energy provider AGL after it allegedly failed to provide customers with correct best offer advice. Victoria’s independent economic regulator accused AGL of failing to calculate its “deemed best offer” check in line with a prescribed formula for 22 customers from March to June 2022.
An energy retailer’s deemed best offer is its cheapest generally available offer and based on customer power usage over the past year. It does not include one-off gifts or sign-up credits. Retailers must regularly inform Victorian customers through their electricity and gas bills if they are on their best offer, as well as how they could save by switching.
The Essential Services Commission gathered evidence showing AGL’s alleged calculation errors deprived the 22 customers of accurate best offer information and reported the issue to the company. Commissioner Sitesh Bhojani said non-compliance with best offer rules was serious. He stated that retailers that do not comply with their obligations under the best offer rules undermine the intended consumer benefits and consumer trust in energy businesses.
Commissioner Bhojani emphasized that best offer information was even more important as many Victorians faced increased cost-of-living pressures. He noted that this was the second time in as many months that the commission held an energy business accountable for depriving customers of critical best offer information.
In September, Red Energy paid $254,436 (US$161,500) in fines after allegedly breaching customer best offer information rules. Separately, AGL paid $73,958 (US$47,000) in penalties last month over the alleged wrongful disconnection of a customer experiencing difficulty paying power bills.