Momentum Energy overcharging enforceable undertaking 2019

We accepted an enforceable undertaking from Momentum Energy about refunding customers who Momentum Energy had overcharged by failing to apply concessions to each customer’s account.

Momentum Energy's enforceable undertaking for refunding customers it had overcharged

Momentum Energy overcharged customers an amount equal to or more than the overcharge threshold of $50 and failed to inform each customer of the overcharging within 10 business days after Momentum Energy became aware of the overcharging as required under clause 31 of the Energy Retail Code.

Refunds to be paid

Three hundred and forty of the overcharged customers had ceased obtaining customer retail services from Momentum Energy before Momentum Energy became aware of the overcharging. Momentum Energy is required to take action to inform each of these customers that they are entitled to a refund and pay such refunds accordingly. Momentum Energy has given the commission an enforceable undertaking that it will take such action under section 54B of the Essential Services Commission Act 2001 (Vic), and the commission has accepted the undertaking.

Momentum Energy will use best endeavours to attempt to contact each of the relevant customers including by letter, email, SMS text message and telephone call. For any customer who contacts Momentum Energy in response to Momentum Energy’s contact attempts, Momentum Energy will pay the refund to the customer within 14 days of such contact.

If any of the relevant customers cannot be successfully refunded by 1 March 2020, then the overcharged amount must be dealt with as unclaimed money in accordance with the Unclaimed Money Act 2008 (Vic).

Progress reports

Momentum Energy will report to us monthly on its progress in informing and refunding the relevant customers.

Got a question?

Contact us for more information about this undertaking. If you have concerns about your energy supply, contact your retailer.