The ACCC notes that the Electricity Supply Association of Australia (ESAA) has issued a press release denying that power companies are liable to compensate consumers for damage caused to appliances and other property by defects in the power supply.
‘The Commission is disappointed at the customer unfriendly response of the ESAA’, said Professor Allan Fels, Chairman, ACCC. The ESAA is responding on behalf of suppliers who are more concerned with their own interests than those of consumers, unlike suppliers in a more competitive industry. It needs to be remembered ordinary consumers have no choice of electricity supplier.
It appears that ESAA misunderstands both the undertaking given by EnergyAustralia and the conduct that triggered the ACCC investigation. EnergyAustralia has not disputed that they may have misled customers when they advised them that, ‘so far as the law allows, EnergyAustralia is not liable for any loss or damage that you suffer because of the electricity or services you get under [the Customer Supply] contract’. Such statements lead consumers to think that they have no rights under the Trade Practices Act - it is unlawful to mislead consumers about their rights.
The ACCC has solid legal opinions that the implied warranty provisions of the Trade Practices Act apply to the supply of electricity to consumers. The key issue is that electricity suppliers owe the same obligations to consumers as do suppliers of any other good or service. While there may be other legal opinions, the Commission believes that the application of these important consumer protections rests on firm ground.
The Commission welcomes the consumer friendly attitude which has been adopted by EnergyAustralia and expects that consumers will demand that other suppliers match EnergyAustralia's commitment.
