Dodo Power & Gas has been penalised for breaches of the electricity code.

Electricity retailer M2 Energy Pty Ltd, trading as Dodo Power & Gas (Dodo), has paid $82,500 in penalties following the issuance of six infringement notices by the Australian Competition and Consumer Commission (ACCC) for alleged breaches of the Electricity Retail Code of Conduct. 

In addition to the penalties, Dodo has provided an enforceable undertaking to the ACCC, admitting to contravening the Code.

“This is the first enforcement action taken by the ACCC in respect of a failure to ensure standing offers comply with the price cap,” said ACCC Commissioner Liza Carver. 

“The price cap is the maximum allowable price for standing offers and serves an important function to protect standing offer customers. It also acts as a common reference price to compare offers against.”

Dodo admitted that between 1 July 2022 and 31 May 2023 the standing offer prices for two of its offers exceeded the relevant price cap for the 2022-2023 financial year. 

Furthermore, Dodo acknowledged that on 6 June 2023 and 20 June 2023, it sent price change communications to customers that did not include required information under the Code. 

Additionally, Dodo did not make a record of how it calculated some matters related to the offered prices as required by the Code.

As part of its undertaking, Dodo has committed to cease the conduct and establish a compliance program to minimise the risk of future breaches of the Code.

“The Electricity Retail Code mandates that retailers issue comprehensive pricing details to consumers, enabling them to compare electricity plans,” Commissioner Carver said. 

“Not only does this information allow consumers to make well-informed choices that best suit their individual needs, but it is also crucial when deciding whether to switch provider for a more affordable plan. This is particularly important given the current economic climate in which households continue to face cost of living pressures.”

Dodo is a small electricity retailer, with 65,658 residential customers and 879 small business customers as of Q2 2023-24, representing approximately 1 per cent and 0.1 per cent of the market, respectively. 

This recent action follows previous penalties paid by Dodo: $20,000 to the Australian Energy Regulator in 2020 for failing to promptly appoint a Metering Coordinator, and $37,800 to the ACCC in 2019 for alleged misleading claims about discounts on energy plans.

The ACCC says its monitoring of Dodo's price change communications and standing offer prices across the market allowed it to identify the conduct.