Contact to refund 25,000 customers over misleading bills
Company caught in Fair Trading Act breach.
Contact Energy will refund more than $280,000 to about 25,000 customers after it breached the Fair Trading Act by misleading some customers about the amount payable for final bills.
Customers who closed their account with the energy supplier between April 1 2008 and April 15 2011 did not receive their prompt payment discount or Dual Fuel discount on their final bill.
While helping the Commerce Commission with the investigation, Contact uncovered a similar breach of the act in relation to those customers on the Dual Energy service also not receiving the relevant discount on their final bill.
Contact would be contacting those customers affected by mail in the coming weeks to arrange for the refund. Customers who were unable to be contacted after six months would have their refund donated to the Christchurch Earthquake Relief Fund.
“We’re pleased to have reached a settlement with Contact Energy that addresses both misleading practices but also makes direct payment back
to the affected customers. Contact Energy co-operated fully with our investigation and admitted liability at the first opportunity,” said
Greg Allan, commerce commission enforcement branch manager.
In response to the commission’s concerns, Contact adopted a compliance programme to ensure future compliance with the
Fair Trading Act. Contact Energy would provide the commission with a report in three months on how the compliance programme was working.
“When we contact a company about a potential breach of the Fair Trading Act, a quick admission of the breach, followed by a remedy, as
in this case, avoids a lengthy and costly investigation and potentialcourt hearings, and produces a win-win for consumers and ultimately
the taxpayers of New Zealand,” said Mr Allan.
“This case is also a reminder to consumers that it can be worth taking the time to check that the relevant discounts have been applied
accurately to their bill, rather than assuming the company has got it right."
NBR staff
Fri, 17 Jun 2011
Fri, 17 Jun 2011
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Contact to refund 25,000 customers over misleading bills
15302