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Energy Retailer CovaU Hit With Three ACCC Fines

Energy retailer CovaU has been hit with three separate fines totalling $33,300, after ACCC alleged it contravened the Electricity Retail Code.

CovaU allegedly contravened the Code by advertising the prices of three residential electricity plans on its website without offering a percentage difference to the comparison price set by the government. Retailers are required to include this difference in order to provide a consistent benchmark.

CovaU admits it published 79 plans that did not offer this comparison percentage.

“Comparison pricing is vital for consumers searching for the best electricity deal, as it provides a consistent benchmark,” ACCC Deputy Chair Mick Keogh explains.

“The failure to publish comparison pricing, as required by the Electricity Retail Code, deprives consumers of an opportunity to compare the individual plans on a like-with-like basis.

“We are disappointed this is the second time CovaU has paid penalties in relation to its energy plans, and we will continue to monitor compliance with the Code and Australian Consumer Law by CovaU and other electricity providers.”

In July 2019, CovaU was fined $12,600 for alleged misleading claims about discounts available on its energy plans.

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