Energy retailer Pacific Blue Retail Pty Ltd (Pacific Blue), which trades as Tango Energy and Pacific Blue Retail, has paid $961,550 for allegedly breaching Victorian energy rules related to guaranteed service level payments.
Victorian energy distributors are required to make guaranteed service level payments to customers who receive a level of service worse than a specific threshold or level. This occurs via a customer’s energy retailer.
Where a distributor makes a guaranteed service level payment, the energy retailer must apply the credit to the customer’s account within 10 business days.
The Essential Services Commission alleges that between 29 September 2021 and 30 December 2024, Pacific Blue failed to credit 8,131 guaranteed service level payments to 6,376 customers within 10 business days.
The late payments totalled $860,165, with some customers entitled to multiple payments totalling hundreds of dollars. 1,822 customers did not have their credits applied to their next bill and therefore paid more for that bill than they would have if Pacific Blue had applied the payments within the regulated timeframe.
Almost 300 customers who did not have their credits applied to their next bill were receiving payment difficulty assistance, with one customer entitled to four guaranteed service level payments totalling $580.
Pacific Blue has now applied the delayed amounts to the accounts of all customers who were entitled to them, and applied customer service credits as goodwill compensation.
Quotes attributable to Essential Services Commission Chairperson and Commissioner Gerard Brody
“Pacific Blue received payments that should have found their way to customers much sooner than they did. It’s money that would have made a real difference for customers, particularly given the cost-of-living pressures faced by households.”
“Victoria’s energy rules exist to protect consumers accessing essential electricity and gas.”
“Retailers should have robust systems and processes in place to ensure that guaranteed service level payments are provided within the required timeframe.”
“The $961,550 paid by Pacific Blue reflects the seriousness of the offending, which continued for over three years.
“The Essential Services Commission won’t hesitate to take action where we see wrongdoing.”
Contact details:
Essential Services Commission Media contact:
Email: [email protected]
Phone: (+61) 437 677 385