Origin Energy has paid a $20 000 penalty following the issue of an infringement notice* by the Australian Energy Regulator (AER).
The AER issued the notice because it had reason to believe that Origin Energy had breached the National Energy Retail Law (Retail Law) by failing to submit accurate market performance data to the AER by the required date. Origin subsequently resubmitted the correct data, four months after it was due.
"A key part of our role as the energy regulator is to monitor and report on energy markets and ensure retailers are meeting their obligations," said AER Chair Paula Conboy.
"The accurate and timely submission of performance data by retailers helps paint a clearer picture of what is going on in the homes of Australian energy customers," Ms Conboy said.
"When we understand the disconnection rates or the number of customers on payment plans, we are in a position to inform policy makers and other key decision makers and work towards better energy outcomes."
The performance data is also used by the AER and other stakeholders to inform policy decisions, for market analysis and to carry out regulatory functions.
Ms Conboy said the AER’s focus on the accuracy and timeliness of all data reporting is just one of its tools to promote transparency and consumer confidence in retail energy markets. The Energy Made Easy price comparator website, which provides customers with information on all the generally available offers in their area, is another.
"We encourage all customers to visit Energy Made Easy to see whether they could be saving money on their energy offer – we know that in most areas there can be a difference of hundreds of dollars between the cheapest and the most expensive offer," Ms Conboy said.
"We will continue to protect energy customers, by ensuring energy businesses comply with the rules around customer disconnection, and by encouraging retailers to adopt the AER’s Sustainable Payment Plans Framework," Ms Conboy said.
"The Framework helps retailers and customers to have better conversations when agreeing payment plans and encourages retailers to offer extra assistance to customers experiencing payment difficulties," she added.
*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.
Notes to Editors
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 performance reporting and compliance reporting obligations as prescribed by section 282 and 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 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.
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.
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.
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.