EnergyAustralia, ACCC propose $14m penalty in pricing lawsuit
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The news: EnergyAustralia is set to face a combined penalty of $14 million in the Australian Competition and Consumer Commission's (ACCC's) lawsuit against the company.
The numbers: Lawyers for both the company and the regulator put two proposed penalties totalling $14 million to Federal Court of Australia Judge David O'Callaghan in a half-day hearing in Melbourne today.
A $4 million penalty relates to alleged breaches of an electricity industry retail code by failing to provide mandatory pricing information in offers on its website.
A $10 million proposed penalty is linked to alleged breaches of consumer law and of the retail code in letters to customers. The company allegedly made false or misleading representations in the estimates of annual costs made in price change notices and breached the industry code by failing to notify consumers of the lowest possible price available to them.
The context: The ACCC announced the lawsuit in September 2023, with the alleged conduct taking place over a period of months in 2022.
This is the first time a breach of the electricity retail code has been the subject of a lawsuit before the Federal Court.
While O'Callaghan had not made a final decision on the case, he indicated the proposed penalty was appropriate, which included a requirement for EnergyAustralia to pay $50,000 in legal costs to the regulator.
O'Callaghan is expected to publish reasons and make orders in the case later this month.
The source: Federal Court of Australia
