AGL slapped with $700,000 fine for misleading customers

AGL has been fined $700,000 after it was found guilty of providing misleading information.

The ACCC took action against AGL over a 2012 advertising campaign targeting South Australian customers which falsely claimed consumers who entered into an energy plan would continue to receive a discount despite rate rises.

The energy company released a statement after the Federal Court decision was handed down this morning.

"AGL Energy (AGL) did not intend to mislead consumers but we accept that we could have done a better job of explaining to our customers the impact of changes to their energy plan rates in mid-2012," the statement read.

"Consumers who are eligible for a refund will be contacted.

"Refunds will vary depending on individual circumstances, but AGL anticipates the average refund will be around $30.

"We are constantly looking at ways to improve how we present information about our energy plans to ensure the plans are clear and easy to understand."

The total cost to AGL, including the fine, court costs and refunds, is expected to top $2 million.