A Victorian-based energy company has been fined $2.5 million over a scam involving door-to-door sales agents allegedly switching people to a new energy provider without their consent.
- Agents used phoney accents and fake names to sign up customers to Simply Energy
- More than 500 accounts were switched without proper consent
- Simply Energy has been fined twice before for not obtaining consent for switching over accounts
Simply Energy was hit with 125 penalty notices by the Essential Services Commission over the actions of two sales agents between July 2019 and April 2020.
The agents allegedly used phoney accents and fake names to call the company and falsely consent to customers having their accounts switched to Simply Energy.
Commission chair Kate Symons said it was the most blatant case of fraudulent sales contractors the commission had dealt with.
"This behaviour from rogue sales contractors undermines customer trust in the market," she said.
The agents transferred 525 gas and electricity accounts at 264 properties without obtaining proper consent.
Ms Symons said many customers had their accounts transferred even after they made complaints to the company.
"Fourteen customers complained to the company after receiving unexpected information packs, but Simply Energy still went ahead with the transfers," she said.
"Some customers spent hours trying to stop the transfers or to be transferred back to their original retailer."
Simply Energy has been fined twice previously for switching customers without obtaining consent.
In one previous case in 2019, a customer was sent bills and disconnection warning notices for five months despite not consenting to have their account switched.
On that occasion, the company was fined $300,000.
In 2018, it was fined $20,000 for transferring, with appropriate consent, a customer who had an acquired brain injury.