AGL and APG disconnection warning notice undertaking 2015

AGL Sales Pty Ltd (AGL) acquired Australian Power and Gas Pty Ltd (APG) in September 2013. While they are separately licensed, APG is wholly owned by AGL.

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We accepted an undertaking from AGL for certain compliance issues

AGL's disconnection warning notices did not comply with the Energy Retail Code in the following instances: 

• Between 31 August 2011 and 24 January 2013, AGL issued 26,394 disconnection warning notices to deemed contract customers which stated a pay by date which was one business day earlier than specified in the code.
• Between 20 December 2012 and 23 July 2013, AGL issued 35,910 disconnection warning notices to some customers which stated a ‘disconnection warning period’ that was less than 7 business days after the date of receipt of the disconnection warning notice.
• Between June 2008 and 16 January 2013, APG issued 293,991 disconnection warning notices to some customers which stated a ‘disconnection warning period’ that was less than 7 business days after the date of receipt of the disconnection warning notice.

The undertaking required AGL to reach an agreement with affected customers

The administrative undertaking commits AGL to carry out a series of steps to identify customers who were disconnected after receiving a non-compliant notice, and reach an agreement to settle the matter.

As part of the undertaking, AGL has agreed to provide written assurances to us that the problems that led to the issue have been resolved, and that mechanisms are in place to ensure that they do not occur again. AGL will also provide assurances relating to its record keeping processes.

AGL reported to us on their progress

AGL will provide monthly reports to us on its progress with the undertaking, commencing in October 2015 until February 2016. The undertaking was subject to audit after completion.

We acknowledge AGL’s cooperation in developing the undertaking

We accepted this undertaking in accordance with its stated approach to non-compliance, set out in our Compliance Policy Statement For Victorian Energy Business (January 2012).

This page presents the assurances provided by AGL and a summary of the audit conducted in 2016 and our response to the findings.