Powershop and Kogan Energy mislead: Cheap gas as lure.

Powershop and Kogan Energy

Powershop were great when they first launched to the market about 5 years ago. Their prices were keen, sometimes the cheapest. After a couple of years, Powershop put up their prices. Good luck to them, but not so good for customers!

A few months ago, Kogan entered the market supported by Powershop systems and procurement. Kogan provide the brand and customer acquisition. We didn’t take much notice as initially neither Kogan nor Powershop were competitive.

They looked to be competitive again

In the last few weeks, Both suddenly started to show up as the cheapest for a few gas customers but in different areas. We cross-checked on Victorian Government website. It gave the same result.

Not declared as a dual fuel offer

We checked out the their offers only to find that in order to get the gas price plan it was necessary to switch for electricity as well. Their Fact Sheet on their websites don’t say that it is only a dual fuel offer. Why is this concealed?

They both require you to call them up to find out this hidden catch. Are they thinking that by the time you are on the phone they’ll convert you?

It’s disappointing that you didn’t come clean, Powershop and Kogan Energy. In effect the Government website is harvesting leads for them.

Cheap gas used to lure customers to buy expensive electricity

We did a spot check on one of our customers from the Peninsula who was already paying the cheapest price. By switching to Kogan Energy, he could save $37/yr on gas but he would pay $271/yr more for electricity. Net cost would increase by $234.

Powershop and Kogan Energy’s motive?

It’s hard to know if this is a scam i.e. a deliberate attempt to mislead customers or an honest mistake. If it’s an honest mistake, please fix it Powershop and Kogan Energy. If not, we will have to bring it to the attention of the Essential Services Commission and the ACCC.

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