EnergyAustralia and Alinta have paid a total of $60,000 in penalties after allegedly failing to submit required accurate market performance data to the Australian Energy Regulator (AER).
“Retailers need to carefully examine their information and data, prior to submitting it to the AER, so that that stakeholders relying on that data are not misled. Where we find breaches of the data reporting provisions of the Retail Law, we will investigate and take action.”
“We expect retailers to have adequate and robust data governance systems in place to ensure that they are meeting their obligations under the Retail Law”, said AER chair Paula Conboy.
The AER’s focus on the accuracy and timeliness of all data reporting supports consumer confidence and market transparency in retail energy markets.
“Having timely and accurate market performance data is critical to the work of the AER. It allows us to examine trends and identify areas of concern in the Australian retail energy market.
“Timely and accurate data on key indicators such as customer numbers, the assistance given to customers experiencing payment difficulties, and the number of customers disconnected for non-payment is necessary to develop the best policies to protect customers and ensure companies are meeting their legal obligations,” said Ms Conboy.
Alinta has paid $40,000 in penalties after being issued with two infringement notices for allegedly failing to submit timely and accurate jurisdictional data for South Australia and New South Wales for the 2016/17 financial year. The latest data submitted was 12 months late.
EnergyAustralia has paid $20,000 in penalties after being issued with an infringement notice for allegedly failing to submit timely and accurate jurisdictional data for New South Wales for the 2016/17 financial year. EnergyAustralia submitted data 10 months late.
Background
Accurate and timely submission of performance data by retailers plays an important part in promoting market transparency and driving improvements in retailer performance. Key stakeholders such as government policy makers, regulators, consumer representatives, and energy ombudsmen use this data to identify emerging trends and drive better outcomes for customers.
Where inaccurate data is submitted by retailers, it can have a material impact on stakeholders using that data to undertake evidence-based policy making. It also impacts on the AER’s ability to report to its stakeholders on the performance of energy retailers in a timely way.
The AER recently released a guidance note AER focus on errors in retail performance reporting which sets out the requirements of the Retail Law and the AER’s approach to how it will handle these matters. For more information, visit the AER website.
Notes to Editors
The payment of a penalty specified in an infringement notice is not an admission of a contravention of the Retail Law or 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 Law or Rules.
The Retail Law and Rules (which apply in Queensland, New South Wales, South Australia, Tasmania, and the Australian Capital Territory) set out key protections and obligations for energy customers and the retail and distribution businesses they buy their energy from.
Under the Retail Law, businesses must meet their market performance reporting as prescribed by section 282 and compliance reporting obligations section 274(1) of the Retail Law.
Section 282 of the Retail Law requires retailers to submit to the AER, in the manner and form as prescribed by the AER Performance Reporting Procedures and Guidelines, data on its market performance for a given reporting period. This includes the provision of data on key indicators such as customer numbers, the assistance given to customers experiencing payment difficulties, and the number of customers disconnected for non-payment.
The AER uses this data to publish reports (including an annual report) on the market performance of energy retailers which are provided to stakeholders including industry bodies, consumer groups and other government departments.
Section 274(1) of the Retail Law requires retailers and distributors to submit information and data relating to its compliance with the Retail Law, Retail Rules and Retail Regulations to the AER in the manner and form required by the AER Compliance Procedures and Guidelines.
About the AER
The Australian Energy Regulator (AER) works to make all Australian energy consumers better off, now and in the future.
We regulate electricity networks and covered gas pipelines, in all jurisdictions except Western Australia. We set the amount of revenue that network businesses can recover from customers for using these networks.
We enforce the laws for the National Electricity Market and spot gas markets in southern and eastern Australia. We monitor and report on the conduct of energy businesses and the effectiveness of competition.
We protect the interests of household and small business consumers by enforcing the Retail Law. Our retail energy market functions cover New South Wales, South Australia, Tasmania, the ACT and Queensland. We do not set the prices consumers pay.
We drive effective competition where it is feasible and provide effective regulation where it is not. We equip consumers to participate effectively, including through our Energy Made Easy website, and protect those who are unable to safeguard their own interests. We use our expertise to inform debate about Australia’s energy future.