EnergyAustralia has paid two infringement notices totalling $142,800 issued by the Australian Energy Regulator (AER) for allegedly failing to comply with the explicit informed consent and disconnection provisions in the National Energy Retail Rules (Retail Rules) and National Energy Retail Law.
The AER alleged that EnergyAustralia transferred an elderly customer from another retailer to itself without obtaining their consent, after another person accidentally set up an electricity account at the affected customer’s address.
After transferring the affected customer, EnergyAustralia sent bills and letters, including warnings for disconnection, to the affected customer’s address, which were not addressed to the affected customer. The affected customer returned letters unopened, and called EnergyAustralia to resolve the issue, but was unsuccessful.
EnergyAustralia then disconnected the affected customer’s service, and they were living without electricity for 114 days between July and October 2023.
While their electricity was disconnected, the customer was living by torchlight and had to eat out every day and charge their phone in public places. EnergyAustralia ultimately reimbursed the customer.
The AER alleged that EnergyAustralia did not follow the correct procedures required by the Retail Rules before disconnecting the customer, including failing to provide required notice addressed to the correct customer, ahead of the disconnection.
AER Deputy Chair Mr Justin Oliver said the impact on the customer was particularly concerning given their efforts to address the issue with EnergyAustralia.
“It’s especially distressing that this happened to an elderly customer and they did not have electricity for an extended period.
“This example is a critical reminder of retailers’ responsibility to have systems and processes in place to verify and maintain accurate customer details and obtain explicit informed consent from customers, and to ensure a customer is only disconnected when permitted by the Retail Rules,” said Mr Oliver.
The conduct was self-reported by EnergyAustralia and referred by the Energy and Water Ombudsman NSW to the AER.