AGL fined for Centrepay spree
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AGL Energy Limited has been fined $25 million by the Federal Court for violating the National Energy Retail Rules - the largest penalty ever imposed for breaches of the National Energy Laws.
The penalty follows an investigation by the Australian Energy Regulator (AER) into AGL’s handling of Centrepay payments.
The Court found that AGL subsidiaries overcharged 483 customers using Centrepay - a bill-paying service for welfare recipients - between 2017 and 2021.
This overcharging totalled $468,310, with 16,156 breaches related to failing to inform and refund customers within mandated timeframes.
Justice Kylie Downes said AGL’s actions had “a direct and negative impact on … individuals in receipt of welfare payments and therefore among the more economically and socially vulnerable”, depriving them of nearly $1,000 on average.
The Court also noted a “lack of concern within AGL as to the impact on customers of being improperly deprived of their welfare payments, and a causal connection between that lack of concern and the ongoing contravening conduct”.
AGL has expressed disappointment and apologised to affected customers, citing improvements to its processes since the issue was identified in 2020.
The company is reviewing the judgment and may consider an appeal.
AER Chair Clare Savage says the decision is a critical reminder for energy retailers to comply fully with customer protection laws.
“The record $25 million penalty reflects the seriousness of the breaches and serves as a warning that the AER expects all retailers to refund customers if they have been overcharged and to provide consumers the full protections afforded under the Rules,” she said.
Services Australia has referred three additional energy retailers to the AER for similar allegations involving inactive Centrepay accounts.
In response to such cases, Services Australia has proposed Centrepay reforms, including stronger safeguards and compliance requirements for participating businesses.
