AGL under scrutiny from regulator over alleged wrongful disconnections and failing to help customers in bill stress

The Essential Services Commission has accepted a court enforceable undertaking from AGL Sales Pty Ltd (AGL) following allegations it failed to comply with rules in place to protect customers facing bill stress, and disconnected customers wrongfully.

Evidence gathered by the regulator shows AGL allegedly applied system controls that restricted customers from receiving application forms for the Victorian Government’s utility relief grant scheme. The grants help people experiencing hardship to pay their electricity, gas or water bills.

The regulator also collected evidence that showed AGL allegedly wrongfully disconnected the energy supply of three customers after it failed to provide these customers with bill payment assistance all Victorians are entitled to under the enforceable energy payment difficulty framework.

Commission chairperson Kate Symons says the alleged breaches go to the regulator’s energy compliance and enforcement priorities around wrongful disconnections and ensuring retailers provide payment assistance to customers who are having trouble paying their energy bills.

“Retailers who fail to meet their obligations to support customers through the energy payment difficulty framework may exacerbate what can be already a stressful time for customers experiencing vulnerability. Gas and electricity are essential to the health, safety and productivity of Victorians. Disconnection is the absolute last resort,” Commissioner Symons said.

“AGL has acknowledged its conduct is likely to have contravened Victorian energy rules on these occasions and has remediated affected customers. We accept the enforceable undertaking offered by AGL to give the commission close oversight of its compliance improvement plan and increased monitoring of its application of the payment difficulty framework. This is a legally binding obligation, and we expect full cooperation and compliance from AGL on this matter.”

The alleged contraventions predated the legislative amendments which took effect on 1 December 2021 and provided the commission with broader enforcement powers. The commission now has greater enforcement options available to address non-compliance with Victorian energy laws.

These include enforceable undertakings, penalty notices, civil penalty litigation and criminal prosecution for some contraventions. The commission assesses each case when determining the most effective enforcement option to address non-compliance and facilitate improved outcomes for Victorian energy consumers.

The commission reviewed this matter in accordance with the enforcement and penalty regime in place at the time the alleged conduct occurred.

Commissioner Symons says future enforcement of breaches of the energy payment difficulty framework will reflect the regulator’s expanded powers, including increased enforcement tools, investigative powers and pathways to commence civil and criminal legal action.

“The energy payment difficulty framework is a key protection for consumers experiencing vulnerability. Energy businesses are on notice that future enforcement of breaches of the framework are subject to significantly increased penalties. In addition, a new Energy Retail Code of Practice specifies further obligations that we can enforce if retailers do not meet their responsibilities under the framework,” Commissioner Symons said.