Recent Federal Court rulings have imposed substantial penalties on energy retailers AGL and Origin Energy for serious compliance failures related to customer protections under the National Energy Retail Rules (NERR) and National Energy Retail Law (NERL).

$25 Million Penalty for AGL

AGL was ordered to pay $25 million for overcharging vulnerable customers using the Centrepay system, which allows welfare recipients to deduct payments for bills directly from their income. AGL retained payments from customers even after their energy contracts ended and failed to cancel deductions promptly, violating NERR and NERL provisions. The court noted that AGL's internal systems failed to detect these issues, highlighting deficiencies in compliance processes and customer protection measures. Additionally, the lack of timely refunds and apologies further aggravated the penalty.

$12 Million Penalty for Origin Energy

Origin Energy was fined $12 million for failing to properly manage life support obligations. This included not registering or notifying life support customers and distributors, improperly deregistering customers, and maintaining inadequate compliance systems. These breaches exposed vulnerable customers reliant on life-saving equipment to potential service disruptions. The court emphasized the critical need for robust compliance systems to manage life support obligations and protect customer welfare effectively.

These rulings underscore the importance of maintaining stringent compliance systems and prioritising the protection of vulnerable customers in the energy sector.