ACCC warns businesses to pass on savings

The Australian Competition and Consumer Commission has issued a statement reminding businesses to pass through to consumers all cost savings attributable to the carbon tax repeal.

In particular businesses supplying regulated goods such as electricity, natural gas, synthetic greenhouse gases (typically refrigerant gases) or synthetic greenhouse gas equipment (such as refrigerators and air-conditioners) are required to pass on all direct and indirect savings to consumers.

“If they fail to do so, the ACCC will take enforcement action against them and seek serious penalties from the courts,” said Rod Sims, ACCC Chairman (pictured).

The courts can also issue injunctions, set the maximum price of a regulated good and order the supplier to refund consumers.

“The ACCC will be keeping a close eye on prices to make sure that all cost savings go to consumers,” said Sims, reminding suppliers who put their prices up when the carbon tax was introduced that these prices must now come down.

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