Electricity broker Energy Watch has been accused of false and misleading advertising by the Australian Competition and Consumer Commission (ACCC). The ACCC is due to take the company before the Federal Court on allegations of misleading conduct in its advertising.

 

The accusations stem from Energy Watch's advertising campaign which compared the prices of competitors and implied the company could make savings for its customers, a fact that the ACCC disputes.

 

The ACCC will seek a Federal Court injunction that will limit the company's ability to continue its campaign which positioned itself as an impartial 'energy umpire'. The company takes profits from commissions it earns after negotiating prices with wholesale electricity providers in New South Wales and Victoria.

 

The ACCC also says that the savings the company claims it can make for its customers are unrealistic and apply to a two year cycle. 

 

The pending legal case comes as the company has drawn fire from the Greens over its similarity to the UK based Energy Watch, which is an independent energy watchdog.