Empower fined over Fair Trading Act

Electricity retailer Empower has been fined $30,000 for breaches of the Fair Trading Act by a company which formerly conducted its residential sales.

The breaches occurred from October 2001 to March 2003.

Contact Energy bought Empower in June 2000, but did not take over management control until July 2003. In the interim Remco Management was contracted to manage Empower.

In turn, Remco contracted residential sales activity to The Sales Company Limited (known as Salesco).

The breaches related to misleading sales practices by employees or contractors of Salesco.

Contact said in a statement that throughout the period the breaches occurred Empower was given repeated assurances by Remco that Salesco was complying with the Fair Trading Act.

Contact Energy has conducted all of Empower's sales since it took management control of the company on July 1 2003.

The statement said Empower did not dispute the charges and recognised that such breaches were wholly unacceptable sales practice.

Contact said Empower co-operated with the Commerce Commission throughout the investigation.

"The Judge noted that Empower's actions throughout the period were entirely appropriate; that Empower did not itself engage in dishonest or misleading conduct; and that it was difficult to see what more Empower might have done to ensure compliance, review procedures, and implement improvements," it said.

- NZPA