Energy retailer fined $82,500 amid soaring electricity prices
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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.
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.
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.
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.
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.
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