Regulator commences second court proceeding against energy retailer Sumo
01 March 2024
The Essential Services Commission has commenced civil penalty proceedings in the Supreme Court of Victoria against energy retailers Sumo Power Pty Ltd and Sumo Gas Pty Ltd (together, Sumo).
The commission alleges that between February 2022 and August 2023, Sumo failed to meet its obligations under the energy rules1 in relation to best offer messages, affecting more than 60,000 Victorian electricity and gas customer accounts.
Victorian energy retailers are required to tell customers on their bill whether or not they are receiving their deemed best offer—at least once every 3 months for electricity and at least once every 4 months for gas. This includes telling customers how much money they could save by switching to the best plan the retailer offers, if they are not already on it.
The commission alleges:
Between February and July 2022, Sumo failed to correctly calculate best offer messages in accordance with energy rules1, affecting 38,219 electricity customers and 24,342 gas customers.
Between April 2022 and August 2023, Sumo failed to provide best offer messages every 3 (electricity) and 4 (gas) months in accordance with the energy rules1, affecting 21,165 electricity customers and 35 gas customers.
Best offer messages give consumers clear, timely and transparent information about energy offers, which helps them to engage confidently with the energy market and make informed decisions about their energy offers.
In pursuing this matter in the Supreme Court of Victoria, the commission is seeking civil penalties and other remedies including declarations, contravention orders, injunctions, adverse publicity orders and other relief under the Essential Services Commission Act 2001.
