CHOICE Accuses Energy Retailers of Misleading Pricing in ACCC Complaint

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Australians might be getting ripped off on their power bills — and consumer group CHOICE is not holding back.

They've just launched what's called a “super complaint” to the ACCC, the consumer watchdog, accusing energy retailers of using sneaky tactics to keep customers in the dark and overpaying. The ACCC now has 90 days to respond.

So what’s going on?

According to CHOICE, some energy companies are playing a tricky game — creating new, cheaper electricity plans but giving them the exact same name as existing ones. That way, when customers get a "better offer" notice, they might not realise it’s actually a different, more affordable plan. And because of that confusion, many don’t bother switching.

CHOICE says this little trick is costing Aussies big — on average, $171 a year, and up to $588 for some households. All up, they estimate consumers are losing out on a massive $65 million.

“The idea seems to be to keep people as confused as possible,” CHOICE said.

And it’s not just a few people missing out. A recent ACCC report found that 4 out of 5 Australians aren’t on their retailer’s best deal. That’s a huge chunk of the population overpaying on their energy bills.

“It shouldn’t be this hard to know if you’re being ripped off,” said CHOICE CEO Ashley de Silva. “We’re calling on the ACCC to take strong court action to stop these dodgy practices.”

But the energy retailers aren’t copping the blame without a fight.

The Australian Energy Council (AEC) — the group that represents electricity retailers — hit back, saying CHOICE has it wrong. CEO Louisa Kinnear pointed the finger at the Australian Energy Regulator (AER), which actually sets the rules around what wording retailers can use on bills.

Retailers, she said, tried to get the rules changed three years ago but were shut down.

“The AER decides the wording of those ‘better offer’ messages,” she explained. “Retailers have been in ongoing discussions with them to make things clearer for customers.”

In fact, back in 2023, the AEC even told the AER that there wasn’t solid proof the current system wasn’t working — that is, they didn’t think the “better offer” messages were failing to help people find better deals.

Now, the AER says it’s reviewing the situation and looking at ways to make things easier to understand.

So, if you've ever looked at your power bill and felt confused — or unsure if you're getting the best deal — you're not alone. And now, the pressure is on the ACCC to step in and clean up what CHOICE calls a confusing and costly mess.

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