Dodo Power & Gas pays $825,472 in penalties for alleged ‘guaranteed service level payment’ failures

Energy retailer M2 Energy Pty Ltd (trading as Dodo Power & Gas) has paid penalties totalling $825,472 for allegedly breaching Victorian energy rules related to guaranteed service level payments and self-reporting. 

The Essential Services Commission gathered evidence that between May 2022 and February 2024, Dodo Power & Gas failed to credit 1,325 guaranteed service level payments to customers within the required timeframes. The late payments affected 978 customers and totalled more than $130,000.

Although Dodo Power & Gas has now credited the relevant amounts to all customers who were entitled to the payments, its alleged failure to make the payments within the required timeframes was a breach of the Energy Retail Code of Practice.

Of the total $825,472 in penalties paid to the commission, Dodo Power & Gas was penalised:

• $750,026 for its alleged failure to make payments to customers within the required timeframes.
• $75,446 for its alleged failure to self-report breaches to the commission within the timeframes required by the Compliance and Performance Reporting Guideline.

Essential Services Commission Chairperson Gerard Brody says the commission introduced the obligation on retailers to apply payments within set timeframes in July 2021 to better protect customers from the inconvenience caused when guaranteed service levels are not met.

"Distributors credited Dodo Power & Gas funds that it was required to pass on to customer bills within prescribed timeframes. It was unacceptable for Dodo Power & Gas to delay making guaranteed service level payments to customers—particularly given current cost-of-living pressures faced by Victorian consumers and because these payments can help to reduce customer bills and arrears.

“The $825,472 in penalties paid by Dodo Power & Gas reflects the seriousness with which the commission treats these obligations, and ought to serve as a deterrent to other energy retailers against similar conduct,” Commissioner Brody said.

What is a guaranteed service level payment?

Energy distributors in Victoria must meet minimum service levels for customers, known as guaranteed service levels. The guaranteed service levels cover events such as low supply reliability, delayed connections or where distributors are late to scheduled appointments. 

When a distributor fails to meet the guaranteed service levels, they must make guaranteed service level payments to affected customers. Distributors make guaranteed service level payments to the customer's energy retailer, which must then apply the payments to customer accounts within the prescribed timeframe.