Residents of a nursing home and a retirement village were among consumers switched by energy retailer Simply Energy to new supply contracts without obtaining their consent, resulting in a stiff fine.
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In total, the company has paid penalties of $60,000 following the issue of infringement notices issued by the Australian Energy Regulator, the second time it has been fined in a matter of years.
The regulator claimed Simply Energy, which is owned by French giant Engie, had failed to obtain explicit informed consent from the customers before signing them up for new contracts.
"Customers who received Simply Energy telemarketing calls either did not understand the nature and the purpose of the call, or did not have the capacity to provide the proper consent," the regulator said in a statement.
Affected customers included residents of a nursing home and a retirement village.
"While active competition between energy retailers can help customers get a better deal, the explicit informed consent provisions of the Retail Law provide fundamental protections to stop retailers unlawfully switching customers who have not been made fully aware of what they are agreeing to, or indeed who have not agreed at all," the chairman of the regulator Paula Conboy said.
"Where we see evidence of retailers failing to comply with their obligations, we will take appropriate enforcement action," she added.
This is not the first time Simply Energy has been caught by the regulator, since it was fined $80,000 in 2015 for similar offences.
