Red Energy has paid an infringement penalty of $20 000 for failing to test metering equipment. The infringement notice was issued in relation to one metering installation but the Australian Energy Regulator considers this failure to be an example of broader compliance issues that exist for Red Energy in relation to the relevant requirements.
“Metering accuracy is critical to the operation of the National Electricity Market and ensures accurate billing. The risk is that consumers pay for more energy than they have used unless the meters are properly tested,” AER Chairman Andrew Reeves said.
“The AER will closely monitor Red Energy. If it does not demonstrate improvement we will consider further action to protect consumers.”
Red Energy is a Melbourne-based energy retailer who supplies electricity to households in Victoria, South Australia and New South Wales. It also supplies gas in Victoria. Red Energy is the responsible person for approximately 700 low voltage current transformers, a type of metering equipment.
In 2011, the AER was alerted to a widespread failure by ‘responsible persons’ (registered participants responsible for the provision, installation and maintenance of metering installations) to test metering equipment in accordance with the National Electricity Rules.
In response, the AER released a Compliance Bulletin outlining its expectations regarding these requirements. Following a review of testing undertaken by responsible persons to 30 June 2013, the AER established that Red Energy did not complete the required testing.
The Electricity Rules stipulate that unless the responsible person has developed an asset management strategy that defines practices to meet the inspection and testing requirements of the Rules and is approved by AEMO, the maximum period between tests is ten years.
The payment of the infringement notice penalty is not an admission of a contravention of the Electricity Rules by Red Energy.