Electricity provider Diamond Energy Pty Ltd has paid $46,950 in penalties after the ACCC issued it with three infringement notices for allegedly breaching the Electricity Retail Code (the Code).
Under the Code, electricity retailers must provide certain information about pricing, such as the lowest possible price, to help consumers compare different electricity plans.
The three infringement notices relate to allegations that Diamond Energy failed to communicate mandatory information to three of its customers.
The ACCC has also accepted a court-enforceable undertaking from Diamond Energy in which it has admitted it contravened the Code.
Diamond Energy admitted that in June 2024 it sent communications to 12,809 customers which failed to include the required pricing information under the Code, when notifying these customers of price changes to their electricity plans.
Diamond Energy also admitted that it failed to include on its website some of the required pricing information under the Code between 1 January and 30 June 2024 in relation to 44 of its electricity plans, and then also between 1 July and 20 September 2024 in relation to a further 44 plans.
"By not disclosing the required pricing information to its customers, Diamond Energy has impacted consumers' ability to make an informed decision when comparing prices across electricity retailers," ACCC Commissioner Anna Brakey said.
"It is vital that electricity retailers provide consumers with accurate information so they can compare and access the most competitive prices in the market."
In the court-enforceable undertaking, Diamond Energy has committed to introduce a compliance program to ensure it complies with the Code.
"We will continue to monitor electricity providers to ensure they adequately disclose pricing information to consumers," Ms Brakey said.
What electricity retailers must tell consumers
The Code requires retailers to include certain information when it communicates its offered prices to residential and small business customers by advertising or publishing the price, offering to supply electricity at that price, or notifying the customer of a change to the price.
Consumers who believe their retailer has failed to provide the required information should in the first instance contact their retailer, which is obliged to inform them of this information under the Code.
The undertaking is available at Diamond Energy Pty Ltd.
Note
The ACCC can issue an infringement notice when it has reasonable grounds to believe a person or business has contravened certain provisions of an industry code.
A person or business is not regarded has having contravened the provision of the industry code merely by paying the penalty specified in an infringement notice.
Background
The Code applies to electricity retailers that supply electricity to residential and small business customers in applicable distribution regions in New South Wales, South Australia, and South East Queensland. Diamond Energy is a retail electricity supplier in these regions.
Since the Code was introduced in 2019, the ACCC has issued infringement notices to Locality Planning Energy, CovaU, ReAmped Energy and Dodo Power & Gas for allegedly failing to include certain mandatory information when communicating prices. The ACCC has also accepted a court-enforceable undertaking from CovaU and Dodo in response to breaches of the Code.
In September 2024, the Federal Court ordered Energy Australia pay penalties of $14 million for making false, misleading or deceptive statements to around 566,000 consumers about electricity prices and failing to provide mandatory information required by the Code.
One of the ACCC's Compliance and Enforcement Priorities for 2025-26 is 'misleading pricing and claims in relation to essential services, with a particular focus on energy and telecommunications'.
