What happened
When South Australian customer Fred Newman called ENGIE to challenge an increase to 65c/kWh — on top of a one-month bill of $1,200 — he says he was told the charge 'is set by the government'. 'I said to the person that's a straight up lie because you're a private company and you've got a profit margin and you can choose how to set this', Newman said. He took the global energy company to the South Australian Energy and Water Ombudsman.
ENGIE apologised and admitted it had misled him. 'ENGIE's call centre scripts do not state or suggest that governments set market prices, and we have delivered agent coaching and targeting retraining about the importance of providing correct information to customers', a spokesperson said; the complaints resolution manager confirmed the words 'set by the government' were 'used in error'. Newman changed providers anyway, saying 'I wouldn't be the only person, there would be lots of people that they've said this to.'
The admission landed amid wider scrutiny: ENGIE issued up to 3,000 price 'corrections' after questions about increases, and another customer, Peter Doyle, said he was told his $1.10/kWh peak price 'is correct' and was not offered the cheaper default offer. South Australian Energy Minister Tom Koutsantonis — who had already referred ENGIE to the ACCC — sent the company's admission to the regulator as well: 'I think it's getting to the point where there's actually something else going on that needs to be investigated and there needs to be prosecutions.'
What it cost
Up to 3,000 customers received price 'corrections'; the SA energy minister referred ENGIE to the ACCC twice
Why it happened
Frontline staff told customers prices were government-set, removing any perceived ability to negotiate.
Steep increases — to 65c/kWh and $1.10/kWh peak rates — triggered complaints the company answered with denial.
The pattern surfaced only after customers escalated to the ombudsman and the ABC.
Up to 3,000 'corrections' pointed to a systemic pricing-communication problem, not one rogue call.
The lesson
When frontline staff blame the government for your prices, the cover story costs more than the increase — regulators treat scripts as policy.
Aftermath
ENGIE said it delivered agent coaching and targeted retraining on giving customers correct information. Energy and Water Ombudsman SA noted that systemic problems get reported to the Australian Energy Regulator, and Minister Koutsantonis forwarded ENGIE's admission to the ACCC, saying he wanted to see investigations and prosecutions.
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