The Australian Energy Regulator (AER) has released its 2025−26 annual compliance and enforcement report outlining actions taken to protect energy consumers, improve industry compliance and support secure, reliable and affordable energy services.
The report highlights the AER’s focus on protecting consumers experiencing vulnerability, including people facing payment difficulty, consumers affected by family violence and households requiring life support equipment, while also supporting power system security and efficient electricity and gas markets.
Key compliance activities and enforcement outcomes included:
- Alinta Energy paying a $1.089 million penalty for alleged breaches of overcharging obligations relating to Centrepay customers,
- EnergyAustralia paying a $142,800 penalty for alleged failures to comply with explicit informed consent and disconnection obligations,
- a Federal Court ordered penalty of $250,000 against CAM Engineering and Construction for failing to join the Energy and Water Ombudsman NSW scheme,
- instituting Federal Court proceedings against Origin Energy for alleged breaches relating to payments received from Centrepay customers
- instituting Federal Court proceedings against Transgrid following an investigation into the October 2024 power system events that led to power outages in Broken Hill and surrounding areas
- monitoring retailers’ compliance with family violence obligations and developing guidance on family violence obligations for exempt sellers, and
- 15 compliance publications, including 3 developed following consultation with stakeholders.
AER Chair Ms Clare Savage said the report demonstrated the regulator’s ongoing commitment to taking timely and proportionate action when energy businesses did not meet their obligations.
“Energy is an essential service. Consumers need to know that retailers, networks and other market participants are meeting their obligations, particularly when people are experiencing vulnerability.
“For the first time, we brought together retailers for an open forum to share learnings on how they support consumers affected by family violence. We will continue to conduct these forums to ensure industry is doing everything it can to reduce the risks for consumers affected by family violence.
“We also reinforced retailer obligations for life support consumers, provided guidance to support a safe and efficient smart meter rollout, and strengthened protections and visibility for embedded network customers through revised guidelines.
“Alongside our enforcement outcomes, we proactively reviewed retailer hardship policies and worked to improve how retailers identify and support consumers experiencing payment difficulty − building on the five rule change requests we submitted to the Australian Energy Market Commission to strengthen protections for these consumers,” said Ms Savage.
The report also details the AER’s work to support power system security and efficient wholesale electricity and gas markets during a period of significant change across the energy sector.
This included issuing a compliance bulletin to help wholesale electricity market participants provide high-quality and timely information to the Australian Energy Market Operator to forecast the balance of supply and demand, and monitoring compliance with network connection obligations.
“As the electricity system becomes more complex, timely and accurate information from market participants is essential. We will keep monitoring participants' compliance with their obligations, including whether network connections are timely and transparent,” said Ms Savage.
The AER also issued guidance to enable consistent and accurate reporting under the Gas Market Transparency Measures and assessed responses to the first compulsory Annual Compliance Order to ensure pipeline service providers comply with requirements that contribute to a transparent and competitive gas market.
While the AER has undertaken a large volume of compliance and enforcement work this year, aligned with its compliance and enforcement priorities, Ms Savage said there is further work to be done in these areas.
“This year’s compliance and enforcement priorities continue to target the areas causing us the most concern. Along with our enduring priorities, they will continue to guide our work in the year ahead before we consult on larger updates to our compliance and enforcement priorities for 2027-28.”