A major Australian energy retailer is set to issue hundreds of thousands of dollars in compensation after Australia’s competition regulator confirmed the company overcharged thousands of households on a misleadingly marketed plan. The Australian Competition and Consumer Commission (ACCC) has ordered Origin Energy to refund a total of $270,000 to 4,500 residential customers who were incorrectly billed on the provider’s so-called “ongoing savers” plan.
The investigation into Origin’s pricing practices launched after consumer advocacy group Choice submitted formal complaints, raising alarms that energy suppliers across the country were using confusing, misleading plan names to falsely advertise cost savings to households. ACCC Commissioner Anna Brakey explained that many customers who signed up for the “ongoing savers” plan ultimately ended up paying higher rates than customers on Origin’s basic, no-frills plan, directly contradicting the value promised by the plan’s branding.
“Energy plans are inherently complex, with layered usage and supply charges that make it challenging for the average consumer to accurately compare potential savings across offerings,” Brakey noted. “It is the core responsibility of retailers to deliver clear, accurate information about their plans so consumers can make fully informed choices that fit their household budgets.”
Under the remediation order, each affected household will receive an average refund of approximately $60, though impacted customers have the option to apply the amount as a credit to their future energy bills instead of claiming a cash refund. In an official statement following the regulator’s announcement, Origin Energy acknowledged the error and apologized to the affected customers, who make up just 0.5% of all customers enrolled in the “ongoing savers” plan. The company added that the average overcharge per affected household sat at roughly $28, and that it has already implemented internal pricing adjustments to prevent a repeat of the error, with refund disbursements currently underway.
Beyond the Origin Energy case, the ACCC used the announcement to issue a broader warning to all Australian energy consumers: long-term loyalty to a single provider rarely benefits the customer, and instead pads the bottom lines of energy companies. The watchdog urged all households to proactively shop around for cheaper energy plans, noting that consumers can request a better rate directly from their current provider. Under Australian regulations, retailers are legally required to disclose how a customer’s existing plan pricing stacks up against the national regulated price safety net.
Brakey encouraged consumers to take advantage of free, government-run energy comparison tools to find plans aligned with their specific usage needs, adding that the gap between the cheapest and most expensive energy plans on the market remains substantial, leaving hundreds of dollars in potential annual savings on the table for inactive customers.