Need to know
- MyConnect is a utilities connection service owned by Australia's largest energy retailer Origin Energy
- CHOICE mystery-shopped the company and found it didn't disclose its ownership to potential customers
- Energy experts and regulators recommend avoiding third-party utility connection services and using independent governmental comparison sites
After signing her new lease back in February, Melbourne renter Kirsty received a text from MyConnect and a missed call.
When she rang back she got the impression that the service was associated with the real estate agency, but later discovered it was a separate company offering "assistance" to connect her energy and internet.
Her information had been passed on to MyConnect by her real estate agent, something she doesn't remember consenting to.
"I'm wondering if I consented on one of the forms … but I didn't really know what I was agreeing to," she says. "It was not spoken about in any of my conversations with the real estate agent."
Her information had been passed on to MyConnect by her real estate agent
Kirsty says she continued to receive daily calls and texts from MyConnect and felt like they were "hassling" her to sign up.
The sales representative from MyConnect gave her two utility company options to choose from – Origin Energy or AGL. Little did Kirsty know that MyConnect was actually owned by one of these retailers.
What is MyConnect?
Changing energy and utilities suppliers when moving house or renting can be time-consuming and stressful. Third-party utility connection services market themselves as an easy way to get connected quickly and conveniently.
But the fine print reveals that these third-party utility connection sites are in fact owned by major energy retailers.
For example, MyConnect and another provider, Your Porter, are owned by Origin Energy; Connect Now is owned by AGL; and Direct Connect is owned by Snowy Hydro/Red Energy.
The fine print reveals that these third-party utility connection sites are in fact owned by major energy retailers
After receiving complaints about MyConnect, we decided to dig deeper to see if it was being transparent and offering customers the best deal, or simply funnelling time-poor Australians into the country's largest energy retailer.
MyConnect is a free utility connection service that helps users to connect their electricity, gas and internet in one phone call. It claims that utility services can be connected in less than eight minutes, with customers able to choose from over 20 service providers.
According to the MyConnect website, on average almost 1500 Australians moving home used its services each week to connect utilities in 2023.
MyConnect also offers partnership with real estate agents, stating it's trusted by 2500+ partners across Australia.
Not a comparison site, and not independent
The MyConnect home page features a disclaimer informing users that, despite offering different options and services, it is not a comparison site. There's also a link leading to information on MyConnect's commercial partnerships.
The last line of the disclaimer reveals some vital information for people who think they're using an independent service: "MyConnect is owned by Origin Energy Limited. We may recommend Origin products to you".
MyConnect was originally an independent utilities connection company, but Origin acquired it in November 2023.
Despite the company now being owned by a major utility provider, a 'partner with us page' testimonial video states MyConnect is "completely independent".
After CHOICE asked Origin about this video it was taken down from the MyConnect website.
The MyConnect webpage before and after we asked about the video testimonial stating that MyConnect is "totally independent".
What our investigation found
CHOICE conducted a mystery shop on MyConnect to find out which energy companies would be recommended based on different addresses in New South Wales and Victoria.
When our six mystery shoppers filled out the form online to connect an energy account, the same three retailers were shown – Origin, EnergyAustralia and AGL.
Reading from left to right on the web page, Origin was always the first option, followed by EnergyAustralia and AGL. The offers outlined the price you would pay per year along with the plan details.
However, the first option shown was not always the cheapest available.
Each mystery shopper then received a call around 5–10 minutes later from one of MyConnect's customer service representatives.
In every one of our six calls we asked the salesperson how MyConnect worked. Its ownership by Origin was never disclosed
After confirming the details our shoppers had entered online, the customer service representative asked about our shoppers' proposed move-in dates and what services they were interested in.
Out of our six mystery shoppers, three were recommended to connect with EnergyAustralia, and three were recommended Origin.
Those who were recommended EnergyAustralia were told they were being offered competitive rates for the area. Some were also told they would be given a $200 credit on their accounts.
In all three of the calls that recommended Origin, EnergyAustralia was actually listed as the cheaper option online; however, one sales representative recommended the mystery shopper go with Origin, saying, "I do find Origin to be a reliable company as a whole".
In every one of our six calls we asked the salesperson how MyConnect worked. Its ownership by Origin was never disclosed.
Origin Energy was always presented at the "first" option on the left hand side of the page, even when it wasn't the cheapest.
Regulators and expert warnings
The Energy & Water Ombudsman NSW Janine Young tells CHOICE that "trust in the energy sector is very low, and if the energy sector is going to build it, then there's got to be increased transparency".
Ombudsman Young says there needs to be transparency around offers and the fact that commissions might be paid when a consumer signs up.
Consumers should be informed that every offer available, or the offer which will best suit their circumstances, won't always be recommended, she says.
Eirene Tsolidis Noyce, a senior policy officer at Consumer Action Legal Centre, says information being provided to consumers from services such as MyConnect needs to be clear and not misleading.
Ombudsman Young says there needs to be transparency around offers and the fact that commissions might be paid
"It's putting consumers in a position to trust this company that seems completely independent from Origin Energy or any other energy provider," she says.
Noyce adds that it takes time to be informed about energy plans, time which consumers might not have.
"It's definitely benefiting off of that issue that so many Australians have, which is to understand an incredibly complex market and to make something worthwhile for them as a consumer or to get a product that's relevant for them," she says.
"I think that speaks more broadly to the issues with the electricity market itself."
Ombudsman warning about commercial comparison sites
In a statement to CHOICE, the office of the Energy & Water Ombudsman NSW "urges customers to be cautious when accessing any of the commercial comparison services, as they are generally not independent".
"While most don't charge a fee, they typically receive a broker's commission from participating energy retailers or their preferred suppliers.
"They do not show all retailer plans. Due to the constantly changing nature of energy products, these sites may not be able to guarantee that the deal they offer is the 'cheapest' or the 'best' product the retailer currently offers."
Gerard Brody, chairperson of the Essential Services Commission in Victoria, says "it's always better to do your own research and shop around for your best offer, rather than using a third party, who will recoup revenue elsewhere".
"Transparency about ownership structure and financial arrangements is good practice, but research tells us transparency alone does not help consumers find the best deal."
The Australia Energy Regulator and Energy Water Ombudsman Victoria declined to comment on MyConnect.
Renters' information being passed on to third-party providers
Joel Dignam, executive director of Better Renting, says people who rent have few options when it comes to protecting their personal data during the rental application process to ensure it isn't passed on to third parties.
Dignam says landlords and real estate agencies can currently get away with not being upfront about what they're doing with renters' data.
"If I need a place to live, and the only way to get that place is by filling out an invasive form asking me to hand over personal information, I've got few alternatives."
Dignam calls on the government to put legal protections in place to stop information gathered in rental application forms being passed on to third-party companies, including utility connection businesses.
Importance of shopping around
When it comes to consumers getting the best deal on their energy, Ombudsman Young says it's important to make the time to call your energy provider and ask for its best deal, and to compare plans with other energy providers.
"On bills nowadays, retailers are required to put what might be a better offer or variance from the default market offer," says Young, adding that it's a "big step forward in giving customers an extra nudge to get a better deal".
Young also recommends speaking with family members or having open conversations with friends about their energy plans, and to use the independent governmental comparison sites.
CHOICE recommends that to get the best energy offer you should conduct your own research and make the switch yourself. We also recommend you avoid commercial comparison sites, which are often commission-driven, and use free government sites like energymadeeasy.gov.au, or compare.energy.vic.gov.au in Victoria.
The best way to get a good energy deal is to do your own research and make the switch yourself.
Origin's response
Origin Energy's general manager of consumer and property retail Duncan Permezel says MyConnect is an important part of helping Origin connect more than half a million Australians at their new homes each year.
"It is very important to Origin that we be appropriately clear about our ownership of MyConnect, which is why we reference this on most pages of the website," he says.
Hasan Ulker, co-CEO and founder of MyConnect, says real estate agents are required to clearly communicate their existing relationship with MyConnect as part of the application process, including telling renters that their information will be passed on to MyConnect.
"We are very proud to be part of Origin and believe it's important to be clear with our customers, which is why we reference Origin's ownership of MyConnect on multiple pages of the website. If our team are asked about this, they should definitely be upfront about Origin's ownership," says Ulker.
Neither Origin nor MyConnect responded to our questions regarding what incentives real estate agents were offered to partner with MyConnect.
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Stock images: Getty, unless otherwise stated.
