1st Energy explicit informed consent audit 2020

After penalising 1st Energy in 2019, we followed up with an audit to re-examine their understanding of what it means to obtain explicit informed consent from a customer before transferring them.

In April 2019, we penalised 1st Energy for billing an elderly Victorian in an aged care home for the energy use of a childcare centre next door. That is, 1st Energy incorrectly transferred the childcare centre without its consent, believing it had obtained consent from the person responsible for that address’ energy use.

What we audited

We required 1st Energy to undergo an independent audit by Deloitte to check 1st Energy’s understanding and compliance with their obligation to obtain explicit informed consent from customers and to transfer the correct customer.

We asked Deloitte to assess 1st Energy for the period May to September 2019 and follow up on key issues arising from the penalty case:

• selling and marketing to a person who was not responsible for paying the energy bills at the address where they were living
• assuming the person was competent to give their explicit informed consent
• confusing the person’s address with a neighbouring business and charging the person for the business’s energy bills.

Key audit results

Since the penalty case, Deloitte found 1st Energy has improved its systems and processes to:

• make sure it markets and sells to people who are responsible for paying their energy bills
• verify the sign up of new senior customers and make sure they were competent when giving their consent
• verify the meter number and address before switching a consumer
• better supervise the compliance of its telemarketing partners.

Why we audit energy businesses

We audit energy businesses to check whether they are complying with rules designed to protect consumers.

One of our compliance and enforcement priorities is to stop energy retailers transferring customers without their consent.

Under our Energy Retail Code, energy retailers must obtain explicit informed consent from a customer before signing them up and switching them over.

Received a bill from an energy provider you didn’t sign up to?

Energy retailers must obtain consent from you before they switch you over.

Before you agree, the energy retailer must give you relevant and clear information about the energy plan. You must be competent to give consent and your consent must be unambiguous.

View more information for electricity and gas consumers.

Got a question?

Contact us for more information.