Electricity supplier Ergon Energy issues a warning against a company offering cuts to electricity bills from a simple plug-in device.

Ergon spokesman John Fowler says residents in North Queensland should be cautious of phone calls about an electricity-saving device that costs $159. He says a number of Townsville residents have received sales calls about the device in the last two weeks.

“Certainly some of those claims that have been made in this case - and a saving of 40 percent on customers' power bills by simply plugging a small device into a power-point - it really is questionable,” he said.

In fact, investigations found the promotion is a fraud. Fowler stressed, “The product should be approved with an approval number and in the case of Queensland it should have a letter starting with 'Q'.”

Fowler explains that they pressed the company on the approval number. Their queries were left unanswered; thereby, indicating the probability that the product is not registered for sale in Australia.

A number of companies, however, offer legitimate electricity-saving products but the best method to save on electricity is to use it properly. As the electricity retailer puts it, “switch on your energy sense.”