ActewAGL comments on accusations of price gouging
Thursday 16 August 2012
ActewAGL Chief Executive Officer Michael Costello today rejected suggestions in the media of price gouging through ActewAGL’s Greenchoice program.
“We have already provided, some months ago, an explanation to the Australian Competition and Consumer Commission (ACCC) on how ActewAGL calculates its charges for its Greenchoice program. The ACCC expressed no objections and have confirmed there has been no misrepresentation made by ActewAGL.
ACCC Chairman Rod Sims stated on ABC 666 radio this morning, “There is no underlying rip-off here … the additional money you’re paying for green energy is bringing on additional renewable projects that would not have been there. So the objective you signed on for is still being achieved.
With regards to information on ActewAGL’s website about Greenchoice, Mr Sims commented, “there is no misrepresentation involved and that is the way the cost is put together.”
Mr Sims also pointed out that, “[Michael Costello] has the ability to … have those who were paying - buying green energy - not pay the carbon price and increase the price on all other customers a little bit beyond the carbon price to equalise the price out – some retailers have chosen to do that.”
Mr Costello responds, saying, “It is important for our customers to know that there is no price gouging – ActewAGL makes virtually no profit from the sale of Greenchoice. In fact, the Greenchoice product is sold at a loss when it is part of our discounted Bundle package.
“Approximately 60 per cent of ActewAGL’s Greenchoice customers take advantage of the Bundle offering and receive a typical discount of 25 per cent. This means they are paying 5.62 cents per kilowatt hour compared with the published rate of 7.5 cents per kilowatt hour.
“Greenchoice is a voluntary program and we encourage our customers to call us if they have any further concerns.”
If customers have concerns about the Carbon Pricing scheme they can call the Government’s Clean Energy Future contact centre on 1800 057 590 or visit cleanenergyfuture.gov.au
For more information about Greenchoice customers can call ActewAGL on 13 14 93 or visit actewagl.com.au/greenchoice
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