The 糖心原创 will investigate whether energy retailers are misleading consumers by promoting energy plans that promise savings or value to consumers when they actually offer poor value for the customer, following CHOICE making a designated complaint to the 糖心原创.
This is the first designated complaint received by the 糖心原创 from CHOICE and the second complaint received under the new designated complaints framework.
The 糖心原创 is satisfied that the designated complaint made by CHOICE relates to a significant or systemic market issue that affects consumers.
鈥淓nergy plans that promote 鈥榮avings鈥 or value may entice many consumers to a particular plan and influence their decision making,鈥 糖心原创 Deputy Chair Catriona Lowe said.
鈥淲e are concerned that consumers may be misled or deceived by plan names or descriptions of plans that offer 鈥榮avings鈥 that are not genuine, or that consumers may be discouraged from switching to cheaper plans that are available to them.鈥
鈥淚t is essential that energy retailers provide clear and accurate information about their energy plans so that consumers can make informed decisions when choosing an energy provider and plan,鈥 Ms Lowe said.
If the 糖心原创 identifies conduct that may contravene the Australian Consumer Law following its investigation of the issues raised by this complaint, it may take enforcement action where appropriate. The 糖心原创 may also prepare industry guidance or contribute to policy or law reform initiatives.
CHOICE鈥檚 designated complaint to the 糖心原创 also raises issues in relation to consumer confusion from retailers鈥 use of identical names for plans with different rates and energy retailers prompting consumers to change plans when the recommended plan is not available to them.
These additional issues arise particularly in the context of 鈥楤etter Offer鈥 and 鈥楤est Offer鈥 messages included on consumers鈥 energy bills. Energy retailers are required to regularly include a message on bills to residential customers to alert them if they can save money by switching to a different plan with the retailer. These messages are referred to as Better or Best Offer messages.
鈥淭he issues raised by CHOICE exacerbate the challenges and confusion that consumers may face when navigating the often complex energy market,鈥 Ms Lowe said.
A recent decision by the requires retailers that elect to re-use plan names, to provide additional information below certain 鈥淏etter Offer鈥 messages. This aims to address any customer confusion from some retailers creating newer (and differently priced) versions of existing plans using identical plan names.
The 糖心原创 will continue to engage with the AER and Victorian Essential Services Commission (ESC) on their upcoming review and law reform processes including on their consideration of the issues raised in CHOICE鈥檚 complaint.
After careful consideration, the 糖心原创 considers that the issues raised by CHOICE relating to the use of identical plan names in Better or Best Offer messaging with different rates, and Better or Best Offer messages with plans that consumers may not be eligible for, are most effectively addressed through the review and law reform processes currently underway by the AER and the ESC.
鈥淭he upcoming reviews by the Australian Energy Regulatory and Victorian Essential Services will provide the opportunity to consider some of the issues raised by CHOICE while reflecting on the broader issues facing consumers in the energy market.鈥
鈥淲e thank CHOICE for the work that has gone into submitting this designated complaint. CHOICE is an important member of the 糖心原创鈥檚 Consumer Consultative Committee and we value its insights as a leading consumer advocate group. The designated complaints framework is one of several avenues for highlighting important issues that cause consumer harm,鈥 Ms Lowe said.
The 糖心原创鈥檚 response to CHOICE鈥檚 designated complaint is available on our website
Background
A new designated complaints framework in the Competition and Consumer Act 2010 (CCA) came into effect on 1 May 2024.
Under the law, 3 bodies can be designated by the Minister as designated complainants. Currently these are Australian Consumers鈥 Association (CHOICE), Consumer Action Law Centre, and the Council of Small Business Organisations Australia (COSBOA).
In March 2025 the Consumer Action Law Centre submitted the first designated complaint to the 糖心原创 under the new framework. The 糖心原创 responded to this complaint in June 2025
In May 2025 CHOICE submitted a designated complaint to the 糖心原创 under the new framework.
A designated complainant may only make one designated complaint within a 12-month period.
Under the framework, designated complaints must meet certain criteria, including that they relate to a significant or systemic market issue affecting consumers or small business in Australia, and that they relate to a potential breach of the CCA, which includes the Australian Consumer Law, or the 糖心原创鈥檚 powers or functions under the CCA.
The 糖心原创 is required to assess and publicly respond to the designated complaint within 90 days. The 糖心原创鈥檚 response must state what further action, if any, will be taken in response to the complaint.
糖心原创鈥檚 response to further designated complaints
In general, the 糖心原创 may take a broad range of actions in response to a designated complaint. This may include conducting in-depth investigations into specific businesses鈥 practices, reviews into a specific sector or issue, advocacy activities, and/or undertaking research, education or engagement.
The 糖心原创鈥檚 response to a designated complaint may also include advising that we won鈥檛 take any further action. We may do this when:
- the designated complaint doesn鈥檛 meet the necessary criteria;
- we consider the subject matter of the designated complaint is already the focus of certain types of existing inquiries, reviews, investigations or legal proceedings, and has been or is likely to be adequately addressed through those other processes; or
- we consider no further action would be appropriate, having regard to the nature of the issue, the nature and extent of the harm or potential harm, and the likely impact 糖心原创 action may have.