Energy retailer fined $82,500 amid soaring electricity prices

In a world where every penny counts, especially for those who have waved goodbye to the full-time workforce, keeping an eye on utility bills is more important than ever.

With the rising cost of living, Australians feel the pinch, and energy providers must play by the rules to ensure fair pricing for all. However, not all companies are sticking to the script.


Recently, energy retailer Dodo found itself in hot water after the Australian Competition and Consumer Commission (ACCC) fined a hefty $82,500.

Dodo breached the electricity code of conduct by charging prices that soared above the regulated caps.

The price cap, or default market offer, is the maximum price energy retailers can charge customers on standing offers.


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Dodo was fined $82,500 for breaking electricity price cap regulations. Credit: Shutterstock


These caps, set by independent regulators, are designed to protect consumers from overcharging.

They also serve as a benchmark for comparing different energy plans, ensuring transparency and fairness in the market.

However, Dodo, which trades under M2 Energy Pty Ltd, admitted to offering two energy plans during the 2022-2023 financial year that exceeded these price caps.


To add insult to injury, the company also sent out price change notices in 2023 that lacked crucial information, leaving consumers in the dark about the actual cost of their energy bills.

The ACCC's action against Dodo marks the first time an energy retailer has been penalised for breaching price caps. ACCC Commissioner Liza Carver emphasised the importance of the price cap.

‘The price cap is the maximum allowable price for standing offers and is important to protect standing offer customers. It also acts as a common reference price against which to compare offers,’ she said.

‘The Electricity Retail Code mandates that retailers issue comprehensive pricing details to consumers, enabling them to compare electricity plans.’

‘Not only does this information allow consumers to make well-informed choices that best suit their individual needs, but it is also crucial when deciding whether to switch provider for a more affordable plan.’

‘This is particularly important given the current economic climate in which households continue to face cost of living pressures.’


This isn't Dodo's first brush with authority. In 2020, the Australian Energy Regulator fined the company $20,000 for failing to appoint a metering coordinator on time.

A year before, the ACCC issued three infringement notices to Dodo for misleading claims about energy price discounts, resulting in fines totalling $37,800.

Similarly, an ACCC report revealed that 79 per cent of Australians were overpaying for electricity, often on higher-priced offers compared to the cheapest options available.

Loyalty proved costly for those who had initially signed up for cheaper plans that later saw price increases. Learn more about this report here.
Key Takeaways
  • Energy retailer Dodo has been fined $82,500 for exceeding electricity price cap regulations and for related breaches.
  • The breaches included having two energy plans with prices higher than the default market offers and sending out inadequate price change notices.
  • This marked the first time the Australian Competition and Consumer Commission (ACCC) has taken action against an energy retailer for breaching price caps.
  • The ACCC highlighted the importance of providing comprehensive pricing details to consumers.
Have you experienced any issues with your energy bills recently? Do you regularly compare plans to ensure you're getting the best deal? Share your experiences and tips in the comments below.
 
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Up here in North Queensland, there is only one power supplier ; that is Ergon. This company is owned by the QLD Govt, and its shareholders, are politicians, who receive dividends.
Cop that Queenslanders.... what a racket. !!
Carsrme
 
You call that a fine, $82,500. The bosses, secretary's, assistant probably earns more than that. Add a couple more zeros, that might get their attention .
Not as ridiculous as the fine that Woolworths copped!

Woolworths supermarket has been hit with a hefty fine after it was found to be selling out of date food at one of its popular Sydney stores.

The NSW Government’s Food Authority issued Woolworths with a penalty notice for $1320 over the incident that occurred at the Seven Hills store.


Source: https://7news.com.au/lifestyle/wool...-food-is-your-local-store-affected-c-14180185
 
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cant read the stupid things...I defy anyone to i...read the bill , 2...understand the bill, 3...relate the usage to the bill, bearing in mind some of the usage is costed at a certain rate then ..a minor price rise halfway through the period, then a different rate going into the next quarter and at different times of the day certain rate adjustments...I defy anyone to read and understand the bill....therefore they can charge whatever they want
 
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cant read the stupid things...I defy anyone to i...read the bill , 2...understand the bill, 3...relate the usage to the bill, bearing in mind some of the usage is costed at a certain rate then ..a minor price rise halfway through the period, then a different rate going into the next quarter and at different times of the day certain rate adjustments...I defy anyone to read and understand the bill....therefore they can charge whatever they want
Phantom55, I agree.
For me it was like being blindfolded about when to use electricity and I think this is the key to getting lower bills when using the high drawing devices.

There is a mob called Amber that I switched to and am currently trialling. It uses a totally different business model to the rest. They are totally transparent in respect to what usage costs are on a daily basis. And they warn me on an updated half-hourly basis (in real time) what the WHOLESALE price will be, with estimates in half-hourly brackets as to how the days costs will pan out.

In another fortnight I will have some of the answers to my trial. I say some, because we are still getting used to making the most out of the costing information they provide us with, either daily or at anytime during the day using their App.

What I do know so far is that by using the information they are giving me, and planning the timing of the use of high energy drawing devices better, I am watching my daily usage cost drop as each day goes by. We are getting better at this process and that is the thing about the other retailers, you can't easily control what the end bill will look like. Amber appears to go a long way to helping a person do that if they wish to.

I'll report on it in about a fortnight, but I intend to stick with them into the summer months to give me time to refine how I use the info they give me.

We are a house of 8, with 4 kids so getting everyone into good cost saving habits, using the new knowledge, is like herding cats.
 
Phantom55, I agree.
For me it was like being blindfolded about when to use electricity and I think this is the key to getting lower bills when using the high drawing devices.

There is a mob called Amber that I switched to and am currently trialling. It uses a totally different business model to the rest. They are totally transparent in respect to what usage costs are on a daily basis. And they warn me on an updated half-hourly basis (in real time) what the WHOLESALE price will be, with estimates in half-hourly brackets as to how the days costs will pan out.

In another fortnight I will have some of the answers to my trial. I say some, because we are still getting used to making the most out of the costing information they provide us with, either daily or at anytime during the day using their App.

What I do know so far is that by using the information they are giving me, and planning the timing of the use of high energy drawing devices better, I am watching my daily usage cost drop as each day goes by. We are getting better at this process and that is the thing about the other retailers, you can't easily control what the end bill will look like. Amber appears to go a long way to helping a person do that if they wish to.

I'll report on it in about a fortnight, but I intend to stick with them into the summer months to give me time to refine how I use the info they give me.

We are a house of 8, with 4 kids so getting everyone into good cost saving habits, using the new knowledge, is like herding cats.
Will be interested in your findings ..... who would have thought that an electricity company would go to such lengths at to warn the consumer about the highs and lows of their energy usage; very interesting indeed!
 
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In Western Australia we have no choice as there is only one supplier for electricity and that is Synergy (or Western Power as the used to call themselves).
 
Wax candles are still a buy today. There are still plenty of us still around when they were common place in the middle of the dinning table burning happily away standing in a bottle of sorts.
 
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You call that a fine, $82,500. The bosses, secretary's, assistant probably earns more than that. Add a couple more zeros, that might get their attention .
Agreed Bill, it’s almost an insult & certainly would not induce incentive to alter their “Modus Operandi”.
I’ll also bet that none of the stolen funds were returned to the victims!
 
Wax candles are still a buy today. There are still plenty of us still around when they were common place in the middle of the dinning table burning happily away standing in a bottle of sorts.
Try cooking oil-used!!!
 

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