Red Energy Pty Ltd (Red Energy) has paid penalties totalling $474,600 and provided the Australian Energy Regulator (AER) with a court enforceable undertaking for allegedly failing to adequately identify and assist customers struggling to pay their energy bills.
The AER issued the infringement notices as it had reasonable grounds to believe Red Energy:
failed to maintain and implement its hardship policy as required by section 43(2)(c) of the National Energy Retail Law (Retail Law), and
failed to offer and apply payment plans as required by section 50(1)(a) of the Retail Law.
It was alleged that Red Energy’s systems and processes were inadequate when customers moved to a new residence but remained with Red Energy. Customers who had previously been receiving hardship assistance at their old residence lost their hardship status when moving to a new residence and were denied suitable payment plans.
The AER also accepted an enforceable undertaking from Red Energy, where Red Energy admitted to the alleged breaches and acknowledged the AER’s concerns in relation to the conduct. The enforceable undertaking included a commitment from Red Energy to resubmit its customer hardship policy to the AER and an independent review of its processes to ensure ongoing compliance.