Energy retailer Momentum Energy has paid a $54,000 penalty to the Australian Competition and Consumer Commission (ACCC) for advertising claims suggesting it generated and supplied renewable energy.
A campaign by Momentum, which spanned television, print, radio, social media and online from September to December last year used phrases such as, “We generate energy out of thin air. And fresh water” and “Powered by Hydro Tasmania, all our electricity is 100% Renewable” to make the claim.
The ACCC says that while Momentum is owned by generator of hydroelectricity Hydro Tasmania, it, like all energy retailers, suppliers customers in Victoria, NSW, South Australia, Queensland and the ACT with electricity from the National Electricity Market or 'grid'. Given this pools a range of sources, including coal-fired generated electricity, the claim that it is 'renewable' is inaccurate.
ACCC chairman Rod Sims says the insinuation that Momentum's energy comes from the hydroelectricity generated in Tasmania is incorrect.
“By its advertising campaign, Momentum gave consumers the misleading impression that Momentum offered a renewable energy product, when this was not the case,” Sims says.
“These sorts of claims may mislead consumers to buy a product thinking it is a “greener” option than it really is. Such conduct not only harms consumers but also disadvantages competitors who may, for example offer accredited GreenPower plans which provide a financial incentive for new renewable electricity generation.”
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