The ACCC has forced energy retailer Blue NRG to compensate more than 500 Australian businesses, who were brought onto fixed-rate contracts and then told they would be charged double.

In November 2022, 543 business customers across NSW and QLD were told by Blue NRG that their electricity bills “would approximately double despite being on fixed rate contracts.”

Blue NRG told these customers the fixed rates could change because of ‘force majeure’ – a contract clause which “relieves a party from performance of their obligations where that performance is impacted by events beyond their control.”

The ACCC found the Blue NRG contracts either did not contain a force majeure clause, or contained a force majeure clause which was not applicable in the circumstances.

The energy provider admitted to making false or misleading representations by telling these customers that it had a legal right to raise electricity prices, when it did not.

“Small businesses, like consumers, are facing cost of living pressures, including higher energy prices,” ACCC Deputy Chair Mick Keogh said.

“We will not hesitate to take enforcement action where energy retailers make misleading or deceptive statements about increasing prices where they do not have a proper legal basis to do so.

“The ACCC is closely monitoring energy retailers to ensure they honour the terms of their customer agreements.”

The ACCC estimates that the proposed price increase would have cost the impacted businesses a combined total of approximately $5 million.