Watchdog supports TEC complaint on GreenPower

Saturday, 22 December 2007 03:48

In 2006, TEC, expressed concerns that these particular products were being represented as providing “100% green electricity at no extra cost” and “100% renewable energy”, on both the Energy Australia website and its promotional material.

“There was a major problem with Energy Australia’s products in that they implied certain things that were simply not true. They were clearlt suggesting the products would make a difference, when in fact major parts were not new green electricity generation and made no change to our carbon footprint,” said Jeff Angel, Director of the Centre.

“As a result of our complaint, Energy Australia removed these products from their website but the damage had been done. The representations made were leading consumers to incorrectly believe that by signing up to the non-accredited products they were making equal or similar contributions to genuine new green energy projects and improving the environment.”

“We call on the other retailers who indulged in this greenwash to also implement the undertakings.”

Energy Australia has agreed to an administrative undertaking to resolve the ACCC’s concerns, which will involve:
        

• Providing all former customers of the unaccredited products with 3 months of the 100% PureEnergy product at the same price as their current contract.
• Send letters to all former customers of these products explaining the difference between accredited and unaccredited energy products in terms agreed by the ACCC.
• Conduct a review of their trade practices compliance program.
• Not make any future claims that they were the “first suppliers” of green power.
• Provide $100,000 to an appropriate environmental organisation to publish a brochure explaining the differences between accredited and unaccredited green power products.

“Total Environment Centre is extremely happy with the results of this ACCC investigation and we also congratulate Energy Australia for agreeing to these rectification measures,” stated Mr. Angel.

“It further confirms the watchdog status of TEC in making sure that consumers are getting what they pay for, especially when their intentions are to benefit the environment.”

Environment groups, including TEC have also produced the 2007 rating report on green electricity products- see www.greenelectricitywatch.org.au