27 Jun 2024 Dodo Power & Gas pays $82,500 in penalties for breaches of electricity code Electricity retailer M2 Energy Pty Ltd, trading as Dodo Power & Gas (Dodo) paid $82,500[...]

Electricity retailer M2 Energy Pty Ltd, trading as Dodo Power & Gas (Dodo) paid $82,500 in penalties after the ACCC issued six infringement notices to Dodo for alleged contraventions of the Electricity Retail Code of Conduct (the Code). Dodo has also provided an enforceable undertaking to the ACCC in which it has admitted it contravened the Code.

"This is the first enforcement action taken by the ACCC in respect of a failure to ensure standing offers comply with the price cap. The price cap is the maximum allowable price for standing offers, and serves an important function to protect standing offer customers. It also acts as a common reference price to compare offers against," ACCC Commissioner Liza Carver 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," Ms Carver said.

Dodo has admitted that between 1 July 2022 and 31 May 2023, the standing offer prices for two of Dodo's offers exceeded the relevant price cap in force for the 2022 to 2023 financial year, in contravention of the Code.

Dodo also admitted that it sent price change communications to customers on 6 June 2023 and 20 June 2023 which failed to include information required under the Code, and that it did not make a record of how it calculated some matters related to the offered prices as required by the Code.

As part of its undertaking, Dodo has committed to cease the conduct and to establish and implement a compliance program to minimise its risk of future breaches of the Code.

"The ACCC will continue to monitor electricity retailers to ensure customers have access to accurate information, and that retailers are meeting their legal obligations, including in respect of the price cap," Ms Carver said.

A copy of the undertaking is available at: M2 Energy Pty Ltd trading as Dodo Power & Gas (Dodo)

Copies of the infringement notices are available on the infringement notices register.

Dodo is a small electricity retailer in the market, with 65,658 residential customers and 879 small business customers as at Q2 2023-24, approximately 1 and 0.1 per cent of the market respectively.

Dodo previously paid a penalty of $20,000 to the AER in 2020 for failing to promptly appoint a Metering Coordinator.

Dodo also paid penalties of $37,800 after the ACCC issued it with three infringement notices in 2019 in relation to alleged misleading claims about discounts on energy plans.

Dodo's conduct was identified by the ACCC through compliance checks of Dodo's price change communications and the ACCC's monitoring of standing offer prices across the market.

This matter marks the first enforcement action taken by the ACCC in respect of sections 10(2) of the Code, which relates to the price cap on standing offers, and section 13A(2) of the Code which prescribes record keeping obligations. The infringement notices issued to Dodo for breaches of the Code bring the total number of infringement notices issued to retailers since the Code was introduced in 2019 to 16.

The Code requires retailers to include certain information when it communicates its offered prices to small customers by advertising or publishing the price, offering to supply electricity at that price, or notifying the customer of a change to the price.[1] The Code also sets a price cap on electricity retailers' standing offer prices.

The Australian Energy Regulator determines the reasonable annual price for supplying electricity to small customers in certain distribution regions with effect from 1 July every year, known as the default market offer determination (DMO). The DMO serves as both a price cap for retailers' standing offer prices and a reference price for comparing electricity offers.

The ACCC will continue to closely monitor the energy sector and take enforcement action against companies who fail to comply with their obligations under the Competition & Consumer Act 2010, including the Australian Consumer Law and the Code.

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