AER Reports Over $53 Million in Penalties as Consumer Protection Drives 2024–25 Enforcement Efforts

Key Takeaways

• Over $53 Million in Penalties: The AER secured more than $53 million (USD$35.5 Million) through four court outcomes and 25 infringement notices during 2024–25.
• Vulnerable Consumers Prioritized: AGL was fined $25 million (USD$16.8 million) for overcharging customers using Centrepay, and Origin was fined $12 million (USD$8.1 million) for failing life support obligations, highlighting the AER’s focus on protecting vulnerable consumers.
• Hardship Support Under Scrutiny: Red Energy and Dodo paid nearly $1 million (USD$675,000) for allegedly breaching consumer hardship rules, as the AER pushes for stronger support programs and better retailer policies.
• Better Bills Compliance: The AER enforced new billing transparency rules, requiring retailers to make energy plans clearer and easier to understand for consumers.
• Record Penalties for Market Misconduct: Callide Power Trading received a record $9 million (USD$6 million) penalty for breaching performance standards, while Jemena was fined $5.5 million (USD$3.7 million) for gas market violations.

Deep Dive

The Australian Energy Regulator (AER) is keeping consumers front and center in the fight for fairness. In its newly released 2024–25 compliance and enforcement report, the regulator laid out a year’s worth of action designed to hold energy companies accountable and ensure that vulnerable Australians aren’t left in the dark.

And the numbers tell a story of over $53 million (USD$35.5 Million) in penalties, four court outcomes, 25 infringement notices, and two enforceable undertakings. But dig a little deeper, and it’s clear the AER’s focus is squarely on people, especially those who rely on life support equipment, face financial hardship, or are navigating the trauma of family violence.

“We will continue to act where we see serious issues impacting consumers experiencing vulnerability,” said AER Chair Clare Savage. That promise wasn’t just lip service. It came backed by strong action.

Penalties That Pack a Message

AGL, one of the country’s largest energy retailers, was ordered by the Federal Court to pay $25 million (USD$16.8 million) in penalties for failing to comply with rules around Centrepay payments, a service often used by low-income customers. That decision is currently under appeal, with the AER filing a cross appeal to ensure the case gets a full airing before the Full Federal Court.

Meanwhile, Origin Energy was ordered to pay $12 million (USD$8.1 million) for breaches of life support obligations. In a rare and welcome move, the company also agreed to contribute $1 million to community organizations that support those reliant on life-saving medical equipment.

These penalties weren’t about punishing for punishment’s sake, they were about setting a standard.

If the past year has shown anything, it’s that hardship isn’t just a buzzword in AER’s rulebook. The regulator zeroed in on retailers falling short on their legal obligations to assist customers doing it tough. Red Energy and Dodo together paid nearly $1 million (USD$675,000) in penalties for allegedly failing to meet hardship requirements under the National Energy Retail Rules.

And the AER didn’t stop there. It’s been actively reviewing retailers’ hardship policies and pressing for improvements, ensuring payment plans and support programs aren’t just words on a website, but lifelines that actually work.

Making Bills Make Sense

If you’ve ever stared at an energy bill like it was written in another language, you’re not alone. That’s why the AER’s Better Bills Guideline is such a big deal. Over the past year, the regulator rolled out fresh guidance and compliance checks to make sure bills are clear, transparent, and crucially, help customers spot cheaper plans when available.

Retailers who recycle plan names now have to spell things out more clearly, thanks to new requirements aimed at helping consumers make informed choices, not confusing ones.

“We expect retailers to familiarize themselves with this guidance,” said Savage, “so that the information they include in bills is clear and helps customers make informed decisions about their energy plans.”

Holding the Market Accountable

The AER’s work goes well beyond customer bills. The regulator also kept a close eye on system integrity across electricity and gas markets. Among its biggest actions: a record $9 million penalty against Callide Power Trading, after the company failed to meet performance standards under the National Electricity Rules, marking the largest fine of its kind handed down by the Federal Court.

Jemena was also hit with a $5.5 million (USD$3.7 million) penalty for breaches tied to the Day Ahead Auction under the National Gas Rules. And to guide better conduct going forward, the AER published updated compliance guidance for gas pipeline service providers, clarifying expectations and promoting better practices.

Through all this, the AER continues to push for a culture of compliance, not just when the regulator’s watching but because it’s the right thing to do.

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