M2 Energy Pty Ltd, trading as Dodo Power & Gas (Dodo), has paid penalties totalling $406,800 following the issuing of six infringement notices by the Australian Energy Regulator (AER). The AER has also accepted a court enforceable undertaking from Dodo.
The AER issued six infringement notices as it had reasonable grounds to believe Dodo breached rule 71(1) of the National Energy Retail Rules (Retail Rules) on three occasions by failing to inform three hardship customers of its hardship policy, and rule 72(1)(a) of the Retail Rules on three occasions by failing to have regard to three customers’ capacity to pay when establishing payment plans.
As part of the enforceable undertaking, Dodo admits it breached rules 71(1) and 72(1)(a) of the Retail Rules in respect of these customers and acknowledges the AER’s concerns in relation to Dodo’s compliance systems and processes relating to its hardship, payment plan and direct debit practices.
The enforceable undertaking requires Dodo to:
appoint an independent expert to conduct a review of its hardship policy and its compliance with hardship and direct debit obligations
establish and maintain a compliance and training program on hardship and direct debit obligations
refund direct debit fees applied to hardship customers impacted by any unauthorised direct debit attempts between 8 October 2022 and 8 October 2024, and
refrain from charging hardship customers direct debit decline fees for a period of two years commencing within six months of the enforceable undertaking.