Statement From Sumo Power About Price Hikes
Regarding claims of luring customers with discount rates that turn out to be short-lived
Melbourne energy retailer Sumo has admitted advertising cheaper rates to sign up new customers before upping prices without warning several months into a contract.
Sumo Power provided the following statement:
We apologise to the small number of our customers who received this communication. It’s not correct and doesn’t accurately represent how Sumo operates and how we treat our customers.
All electricity retailers are permitted to change their prices to reflect changing costs and generally change their rates at least once each year. When a customer signs up with us, we make it clear to our that prices may change to reflect higher costs, such as higher wholesale electricity prices.
We don’t have any control over wholesale electricity prices, which have risen rapidly and unexpectedly over the past few months. You can see this volatility in the graphic from the ASX below. Rising wholesale prices are the main driver of higher retail prices right now and will be for the foreseeable future.
Unfortunately, sometimes a price change will impact a customer who only recently signed up with us. Sumo guarantees no customer has received more than one rate rise this year, despite the challenging wholesale electricity market outlook.
Sumo was founded to provide customers an alternative to the big retailers and while we can not control wholesale prices we strive to provide the best offer to our customers and provide a new alternative in the market.