The Australian Energy Regulator (AER) has today released its annual compliance and enforcement report for 2023–24 detailing some of the significant compliance and enforcement actions undertaken during the period.
With ongoing cost-of-living pressures and energy affordability a significant issue for many households, the AER’s compliance and enforcement work remained focused on protecting consumers and ensuring a secure and reliable energy supply.
During the 12–month reporting period, the AER’s compliance and enforcement outcomes resulted in:
- a total of $9.989 million in penalties from three court outcomes and five infringement notices
- four civil proceedings in progress in the Federal Court
- four enforceable undertakings accepted, and
- eleven compliance bulletins (including consultations) and guidance notes published.
AER Chair Ms Clare Savage said keeping a strong focus on compliance and enforcement was a key element in ensuring energy consumers are better off, now and in the future.
“It’s especially important that as Australians face ongoing cost-of-living pressures, our compliance and enforcement outcomes continue to deliver for consumers.
“We remain committed to working with energy companies so they understand and meet their obligations and provide consumers with the services and protections they are entitled to,” Ms Savage said.
Activities undertaken to protect customers during the reporting period included pursuing actions for breaches of life support obligations and taking action in relation to alleged breaches of overcharging obligations associated with Centrepay payments.
The AER also reminded retailers of their obligations to communicate price changes and support customers experiencing hardship and undertook a review of retailer compliance with the Better Bills Guideline and family violence policies.
We took steps to protect customers in embedded networks by instituting proceedings against CAM Engineering and Construction Pty Ltd, and accepting a court enforceable undertaking from Trinity Place Investments Pty Ltd.
During 2023–24, the AER remained focused on monitoring compliance to support a secure and reliable energy system, and efficient and competitive electricity and gas markets.
This included securing almost $7 million in penalties in two actions taken for alleged breaches of obligations relating to not providing back up electricity services and advising AEMO of physical plant capability. We also secured penalties of $2.75 million for alleged breaches of record keeping obligations relating to the Day Ahead Auction for gas pipeline capacity.
The AER instituted proceedings in the Federal Court against two further operators:
- Callide Power Trading for allegedly failing to comply with its performance standards for the Callide C power station.
- Four Jemena subsidiaries for alleged large scale breaches of obligations related to not having the appropriate checks and systems in place to ensure the Auction Quantity Limits provided to AEMO for the Day Ahead Auction of pipeline capacity were accurate.
The publication of the 2023–24 annual compliance and enforcement report follows the release of the AER’s compliance and enforcement priorities for 2024–25.
Having received strong feedback from stakeholders that the AER’s priorities remain relevant, the AER’s 2023–24 Compliance and Enforcement Priorities have been extended and updated to address important fields including the efficacy of retailer hardship policies, price and tariff change notifications, and network compliance with performance standards.
In addition to the work in our priority areas, the AER will continue to monitor all facets of the energy market and will proactively work to improve compliance and address harm including by taking enforcement action where justified.
“The AER will continue to act where there are serious issues impacting consumers experiencing vulnerability, including life support consumers and consumers affected by family violence,” said Ms Savage.
Note to Editors
Compliance and Enforcement Priorities
On 27 June 2024, the Australian Energy Regulator (AER) released its 2024-25 Compliance and Enforcement Priorities.