The Australian Competition and Consumer Commission welcomes United Energy's announcement that it will provide residential consumers with 'no-cost' protection against damage caused by power surges.
United Energy's announcement follows discussions the ACCC has been having with the Electricity Supply Association of Australia (ESAA), regulators and the Victorian electricity companies on the question of who bears liability for damage caused by electricity.
"The ACCC has formed the provisional view that Victorian electricity companies are liable under the Trade Practices Act for damage caused by power surges," ACCC Chairman, Professor Allan Fels, said today.
"These consumer rights may include some small businesses for damage caused by electricity, including power surges.
"Although electricity companies have maintained that these implied rights do not apply to damage caused by electricity other than where the electricity company has been negligent, United Energy's Surge Plan addresses in part the ACCC concerns. "Nevertheless, it is important for consumers to know that they may have other rights under the Trade Practices Act as well as rights under other laws.
"The ACCC is aware that United Energy and other electricity companies have in the past charged fees for similar protection plans. The ACCC has concerns that electricity companies should not misrepresent to consumers that they may not have additional rights under the Act.
"Consistent with this view, the ACCC has informed electricity companies that they might have to fully refund fees paid by consumers for protection plans. United Energy has advised the ACCC that it intends to fully refund payments made by its customers for the previous PowerGuard Plan."
Further information Professor Allan Fels, Chairman (06) 264 2829 or pager (016) 373 536 Ms Lin Enright, Director, Public Relations, (06) 264 2808
United Energy's announcement follows discussions the ACCC has been having with the Electricity Supply Association of Australia (ESAA), regulators and the Victorian electricity companies on the question of who bears liability for damage caused by electricity.
"The ACCC has formed the provisional view that Victorian electricity companies are liable under the Trade Practices Act for damage caused by power surges," ACCC Chairman, Professor Allan Fels, said today.
"These consumer rights may include some small businesses for damage caused by electricity, including power surges.
"Although electricity companies have maintained that these implied rights do not apply to damage caused by electricity other than where the electricity company has been negligent, United Energy's Surge Plan addresses in part the ACCC concerns. "Nevertheless, it is important for consumers to know that they may have other rights under the Trade Practices Act as well as rights under other laws.
"The ACCC is aware that United Energy and other electricity companies have in the past charged fees for similar protection plans. The ACCC has concerns that electricity companies should not misrepresent to consumers that they may not have additional rights under the Act.
"Consistent with this view, the ACCC has informed electricity companies that they might have to fully refund fees paid by consumers for protection plans. United Energy has advised the ACCC that it intends to fully refund payments made by its customers for the previous PowerGuard Plan."
Further information Professor Allan Fels, Chairman (06) 264 2829 or pager (016) 373 536 Ms Lin Enright, Director, Public Relations, (06) 264 2808