Fairer Energy for all Victorians

A remarkable win for Victorian energy consumers was welcomed in February 2022 when the Essential Services Commission (ESC) announced that energy retailer Sumo Power had paid a penalty of $500,000 for the alleged wrongful disconnection of Victorian families in the lead up to Christmas 2020. This was partly the result of the work of our dedicated financial counsellors, and the powerful policy and media advocacy that Consumer Action does alongside other consumer advocates.

Consumer Action’s Senior Policy Officer Luke Lovell was closely involved in the advocacy to expose Sumo’s conduct and support Victorians who suffered as a result. “We welcome the ESC’s decision to fine Sumo $500,000 for wrongfully disconnecting their customers,” Luke said.

Multiple people called Consumer Action after being disconnected by Sumo, some even without notice. One of these customers was James Heenan. He realised something had gone wrong when his phone was still flat after having charged it overnight and when the lights did not turn on.

However, the impact of energy disconnections goes beyond these day-to-day activities. “Disconnecting someone’s energy supply is a harsh, punitive measure which can put people’s health and wellbeing at risk,” Luke said.

“As a provider of an essential service, it is critical that energy businesses are following the rules and doing everything required to support people who may be having trouble paying their bills.” These rules include giving a reminder notice of a late bill, a warning period of 6 days before disconnection, and a duty to act fairly and reasonably.

To add insult to injury, further revelations showed that Sumo Power engaged in egregious management practices, including the altering of customers’ billing schedules to fasttrack disconnections and targeting

1,500 customers by putting their names on a “wall of shame” with the aim of cutting off their power.

Consumer Action made a formal complaint to the ESC and campaigned to have Sumo Power’s operating licence investigated, and for victims to be compensated. Although Sumo Power ultimately retained its licence, the $500,000 penalty imposed by ESC was a forceful warning to industry that rules for disconnection must be complied with. And that the potent voice of victims, represented by Consumer Action and other organisations, would not go unheeded.

Upon hearing about the fine, James Heenan was ecstatic. “Wow, that’s awesome news! This makes me really happy! Thanks for your help in sharing my story,” James said.

Luke says that “going forward, we will continue to monitor energy companies’ behaviour, and make complaints where we believe businesses have failed in their duty to customers.”