Three electricity distribution businesses, SA Power Networks, Energex, and ActewAGL Distribution, have paid penalties totalling $160 000 for alleged breaches of the life support obligations under the National Energy Retail Rules (Retail Rules).
The Retail Rules protect consumers using life support equipment by requiring retailers and distributors to provide:
- information (including an emergency telephone number) to registered life support customers to assist them in planning for the loss of energy supply; and
- four days’ notice when a business is planning any works that will interrupt a registered life support customer’s energy supply.
ActewAGL Distribution paid a penalty of $20 000 following the issue of an infringement notice by the AER. The AER issued the infringement notice to ActewAGL Distribution because it had reason to believe that ActewAGL Distribution had breached a penalty provision of the Retail Rules by failing to provide 473 customers registered as using life support equipment with the information required to be provided to assist those customers in planning for a loss of supply, during the period from September 2014 to July 2015.
“The obligation to provide information to registered life support customers is crucial. Life support customers need access to information to help them prepare an action plan for when supply is interrupted,” AER Chair Paula Conboy said.
SA Power Networks paid penalties of $80 000 following the issue of four infringement notices, and Energex Limited paid penalties of $60 000 following the issue of three infringement notices. The AER issued the infringement notices because it had reason to believe in each case that customers registered as using life support equipment did not receive the required four days’ notice of planned interruptions to energy supply.
“An unexpected loss of supply can have dire consequences for customers who depend upon life support equipment. Where possible, distributors need to give these customers adequate notice to minimise the risk. For planned interruptions, at least 4 days’ notice must be provided,” Ms Conboy said.
“Ensuring that energy distributors comply with these very important life support obligations is a priority area for the Australian Energy Regulator.”
The payment of a penalty specified in an infringement notice 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 person 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, and an emergency telephone number for the distributor at no more than the cost of a local call.
The Retail Rules also require that life support customers are given at least four business days written notice of any planned interruption.
SA Power Networks, Energex, and ActewAGL Distribution are electricity distribution businesses that supply customers in the South Australia, Queensland, and the Australian Capital Territory respectively.