The Australian Energy Regulator (AER) has taken enforcement action over recent incidents in which some customers in NSW known to require life support equipment unexpectedly lost electricity supply.
Ausgrid has paid penalties of $100 000 in relation to five alleged breaches of the life support protections under the National Energy Retail Rules (Retail Rules). The AER has accepted a court enforceable undertaking from Ausgrid to review its compliance systems and processes.
“Protecting customers requiring life support equipment is an ongoing priority for the AER,” AER Chair Paula Conboy said.
“It is imperative customers reliant on life support equipment receive advanced notice of any planned interruption to their energy supply, so they can make alternative plans. This reduces any risk of harm occurring or more serious consequences for those customers,” said Ms Conboy.
“Businesses must have effective systems and processes in place to manage these critical life support compliance obligations,” Ms Conboy added.
“Our compliance and enforcement work is important to ensuring all customers are protected,” she added.
As part of its court enforceable undertaking, Ausgrid has committed to improving its systems and processes for managing its life support obligations including:
- implementation of a comprehensive compliance program specially focussed on life support equipment provisions under the Retail Rules;
- an annual review of this program by an independent reviewer;
- appointing a compliance officer to ensure it meets the requirements under the court enforceable undertaking; and
- implementation of a project to verify the network connectivity of its life support customers.
The payment of a penalty specified in an infringement notice and the offer of a court enforceable undertaking to the AER is not an admission of a contravention of the Retail Rules. The AER can issue an infringement notice where it has reason to believe a business has contravened a civil penalty provision of the Retail Rules.
Background
The National Energy Retail Law and Retail Rules (which apply in New South Wales, the Australia Capital Territory, Queensland, South Australia and Tasmania) set out key protections and obligations for energy customers requiring life support equipment and the retail and distribution businesses they buy their energy from.
The Retail Rules require that when a premise is registered as having life support equipment, customers are required to be given:
- general advice that there may be a planned or unplanned interruption to the supply,
- information to assist them prepare a plan of action in the case of an unplanned interruption,
- an emergency telephone number for the distributor at no more than the cost of a local call, and
- at least four business days written notice of any planned interruption.
To be eligible for these protections, customers must provide their energy retailer or distributor with confirmation from a registered medical practitioner that a person residing at the customer’s premises requires life support equipment.
Ausgrid is an electricity distribution business that supplies customers in New South Wales.
About the AER
The Australian Energy Regulator regulates energy markets and networks under national legislation and rules in eastern and southern Australia, as well as networks in the Northern Territory. Its functions include:
- monitoring wholesale electricity and gas markets to ensure energy businesses comply with the legislation and rules, and taking enforcement action where necessary;
- setting the amount of revenue that network businesses can recover from customers for using networks (electricity poles and wires and gas pipelines) that transport energy;
- regulating retail energy markets in Queensland, New South Wales, South Australia, Tasmania (electricity only), and the ACT;
- operating the Energy Made Easy website, which provides a retail price comparator and other information for energy consumers;
- publishing information on energy markets, including the annual State of the Energy Market report, to assist participants and the wider community.