Click Energy pays $640,000 for alleged sales agent fraud

Click Energy has paid penalties totalling $640,000 after an external sales agent allegedly faked customer details to sign them up without their consent.

The Essential Services Commission has issued 32 penalty notices to Click Energy after the sales agent allegedly entered 20 customers’ details into an online contract form without their permission.

Commission chair Kate Symons says the penalty illustrates the problems of rogue sales contractors operating on behalf of energy businesses, undermining trust in the market.

“Consumers must have confidence they will only be switched from one energy retailer to another after they are properly informed and have given their consent to the switch,” she said.

Between 1 September 2020 and 25 September 2020, an external sales contractor processed transfer requests for 20 customers, across 32 accounts, without their knowledge.  

Ms Symons says this is the second time Click Energy has paid penalties because of alleged fraudulent conduct by its sales agents.   

At the time, Click Energy advised it had enhanced its controls and internal guidelines to further minimise the risk of a similar occurrence in the future. 

Ms Symons says considering those comments, the commission is very disappointed similar conduct has happened again.

“Taking strong enforcement action is a message to Click Energy and the industry as a whole to prevent customers being transferred without their consent,” she said.

Ms Symons says energy retailers needed to monitor the behaviour of external sales agents to ensure fraudulent practices are picked up.

“Retailers are responsible for the actions of their sales agents and we will not hesitate to act to stamp out energy retailers gaining customers by allegedly fraudulent means,” she said.

^{*On 30 September 2020, Amaysim Energy Pty Ltd (which owned Click Energy) was acquired by AGL Energy Ltd.}

Editors’ note: The commission can issue energy industry penalty notices where it has reason to believe a business has committed an energy industry contravention. Payment of a penalty is not an admission of a contravention of its retail licence.