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AGL told to pay back $785k

ABC

ABC

Electricity retailer AGL will pay back $785,000 to customers the Federal Court has ruled it misled.

The court found in December that AGL misled or deceived about 30,000 South Australian customers during phone calls between January and July 2012.

The customers were told they would get discounts if they signed on to an energy plan, but when rates later increased the discounts reduced and some customers ended up paying more than the standard rates for energy deals.

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Dan Star for the Australian Competition and Consumer Commission (ACCC) told the latest Adelaide hearing it was agreed AGL’s deception was “inadvertent” and unintentional.

Mr Star said AGL agreed a fine of $700,000 would be appropriate, based on other similar matters and on AGL’s prior record.

He said the court also should make publication orders so affected customers and the wider community knew AGL had engaged in misleading and deceptive behaviour.

The ACCC wanted to deter other businesses from such behaviour, he told the court.

Dick Whitington QC, for AGL, said the company would credit the accounts of existing customers and refund to any former customers the case involved.

Justice Richard White reserved his decision on a penalty.

At the time of the verdict last year AGL issued a statement saying it did not believe it had misled energy customers.

It promised to offer simpler energy deals and said it was constantly looking for clearer ways to communicate complex plans.

ABC

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