The Australian Energy Regulator (AER) has today published its annual compliance and enforcement report, which details its activities during 2024-25 to improve compliance and protect consumers.
AER Chair Clare Savage said the AER’s achievements last financial year demonstrate our commitment to protecting consumers from harmful behaviour and ensuring a secure and reliable energy supply. Our efforts resulted in:
- more than $53 million in penalties from four court outcomes and 25 infringement notices
- two enforceable undertakings accepted, and
- 13 compliance publications that were developed following consultation with stakeholders.
A number of the AER’s outcomes in 2024-25 help to ensure consumers experiencing vulnerability receive the protections they are entitled to.
This included securing a Federal Court outcome where AGL was ordered to pay $25 million in penalties after the Court found it failed to comply with their overcharging obligations related to Centrepay payments.
Separately, Origin was ordered to pay a penalty of $12 million for breaches of its life support obligations under the Retail Rules and Retail Law, following court proceedings instituted by the AER. Origin also agreed to contribute $1 million to organisations which assist sections of the community who rely on life support equipment.
“We will continue to act where we see serious issues impacting consumers experiencing vulnerability, including those requiring life support equipment and consumers affected by family violence,” Ms Savage said.
In February 2025, the AER published guidance for energy retailers to foster understanding and compliance with their obligations to support customers affected by family violence.
The AER has also focused its efforts on ensuring retailers identify and support consumers experiencing difficulties paying their bill, including by offering hardship program assistance and affordable payment plans.
As part of this work, the AER issued infringement notices to Red Energy and Dodo, who paid almost $1 million in penalties for alleged breaches of the National Energy Retail Rules relating to consumer hardship obligations.
“Through our compliance activities over the past year, we have identified that many retailer hardship policies could be improved and have continued to engage with retailers to review and update their policies,” Ms Savage said.
The AER has also undertaken work to make it easier for consumers to understand their bills and energy plans, including ensuring retailers comply with the Better Bills Guideline.
Over the past year, the AER has published guidance to educate retailers on their obligations under the Better Bills Guideline and has introduced a requirement for retailers who reuse plan names to include more information on customer bills so that it is clear to customers if a cheaper plan is available.
“We expect retailers to familiarise themselves with this guidance and ensure they are meeting their obligations so that the information they include in bills is clear and helps customers make informed decisions about their energy plans,” Ms Savage said.
The AER has remained focused on monitoring and enforcing compliance to support power system security and efficient electricity and gas markets.
This included a $9 million court ordered penalty against Callide Power Trading for breaching National Electricity Rules by failing to meet performance standards and a $5.5 million court ordered penalty against Jemena for breaches of the National Gas Rules related to the Day Ahead Auction. The penalty against Callide was the highest ever imposed by the Federal Court for a failure by a market participant to comply with performance standards.
The AER also published guidelines for gas pipeline service providers, detailing how the AER interprets and applies various compliance obligations under the Gas Law and Rules, and setting out better practice considerations to help participants align with the industry standards.
“We will continue to proactively engage with market participants to encourage compliance with the relevant rules and laws, and will take appropriate action against non-compliance to address harm,” Ms Savage said.
The AER recently published its Compliance and Enforcement Priorities for 2025-26, introducing new priorities which include protecting consumers during the smart meter rollout as well as improving compliance with ring-fencing obligations.
Note to editors
AGL decision
On 19 December 2024, AGL Retail Energy Limited and three other subsidiaries of AGL Energy Limited (together, AGL) were ordered by the Federal Court to pay penalties totalling $25 million for failing to comply with their overcharging obligations related to Centrepay payments, in proceedings brought by AER.
On 7 February 2025, AGL appealed against the findings of the Court, the penalties and other orders. The AER has filed a cross appeal and a notice of contention in response to AGL’s appeal. The appeal and cross appeal will be heard on a date to be set by the Full Federal Court.
ENDS