The Australian Energy Regulator (AER) has published a mid-year report into its compliance and enforcement activities from 1 July to 31 December 2023.
During this period, the AER’s compliance and enforcement outcomes included more than $6 million in penalties, instituting two civil proceedings in the Federal Court and accepting two court enforceable undertakings.
Key updates, actions and outcomes under the AER’s compliance and enforcement priorities include:
- The Federal Court ordered AGL Energy Ltd subsidiaries, operators of AGL’s Bayswater and Loy Yang power stations, pay penalties totalling $6 million for breaches associated with the failure to provide essential system services.
- The AER instituted proceedings against Santos Direct Pty Ltd for alleged breaches of important record keeping obligations relating to the Day Ahead Auction for gas pipeline capacity.
- The Federal Court found Pelican Point Power Limited contravened by failing to disclose to AEMO the full capacity of its Pelican Point Power Station that was available during heatwave conditions in February 2017. The AER is awaiting judgment on penalty.
- The AER instituted proceedings against embedded network seller CAM Engineering and Construction Pty Ltd for allegedly failing to become a member of the Energy and Water Ombudsman NSW scheme.
In addition to this work in priority areas, the AER’s compliance and enforcement work has continued to pursue its strategic objectives by acting where there are serious issues impacting consumers experiencing vulnerability and progressing important ongoing work in the wholesale electricity and gas markets.
The AER is responsible for monitoring and enforcing compliance with national energy laws and rules and taking action when they are breached. The AER Compliance & Enforcement Policy explains our approach to promoting compliance with obligations under the National Electricity Law, National Gas Law, National Energy Retail Law and the respective Rules and Regulations. The policy also provides guidance on how we respond to potential breaches and the factors we may have regard to when deciding whether to take enforcement action, and should be read in conjunction with our compliance and enforcement priorities.