Powershop Australia Pty Ltd (Powershop) has paid eight infringement notices totalling $542,400 issued by the Australian Energy Regulator (AER) for alleged breaches of its life support obligations under the National Energy Retail Rules (the Retail Rules).
The alleged breaches impacted customers in South Australia, New South Wales and Queensland.
The AER alleged that between August 2021 and November 2022, Powershop failed to comply with its life support obligations under the Retail Rules by:
- failing to register three customers as requiring life support equipment when advised by each customer;
- failing to provide one customer with a life support information pack within the required timeframe;
- failing to notify the distributor in relation to three customers as requiring life support equipment when advised by each customer; and
- deregistering one life support customer without providing a deregistration notice.
AER Deputy Chair Justin Oliver said these failures could have resulted in significant harm to Powershop’s customers.
“While thankfully no customer’s health was harmed, the consequences of disconnection for life support customers could have been particularly severe,” said Mr Oliver.
Powershop also did not register customers with the relevant distributor for over a year in some cases. The result was that distributors did not have advance notice of their life support requirements, and could not support these customers or prioritise the reconnection of their premises in the event of unplanned interruptions.
The AER alleged that the breaches were caused by a range of deficiencies with Powershop’s systems and failures by its agents.
“This is another important reminder to all retailers to ensure they comply with their critical obligations to protect consumers who require life support equipment,” said Mr Oliver.
Notes to editors
National Energy Retail Law
Under section 274 of the National Energy Retail Law, retailers are required to report to the AER potential breaches of the Retail Rules.
The alleged contraventions were identified as part of an investigation undertaken by the AER after Powershop self-reported possible breaches of the life support obligations to the AER between July 2023 and January 2024.
National Energy Retail Rules
- r 124(1)(a): failure to register a customer as requiring life support equipment when advised by the customer that a person residing or intending to reside at the customer’s premises required life support equipment
- r 124(1)(b): failure to provide a customer with a life support information pack within five business days after receipt of advice from the customer that a person residing or intending to reside at the customer’s premises required life support equipment
- r 124(1)(c): failure to notify the distributor that a person residing or intending to reside at the customer’s premises required life support equipment when advised by the customer
- r 125(1): deregistering a life support customer without providing the deregistration notice
The AER’s power to issue infringement notices
The AER can issue infringement notices when it believes on reasonable grounds that a person or business has contravened certain provisions of the Retail Rules. The payment of an infringement notice does not constitute an admission of liability by the person or business.
Compliance and enforcement priorities
Protecting vulnerable consumers, while enabling consumers to participate in energy markets, is one of the AER’s enduring Compliance and Enforcement Priorities. Learn more about the AER’s Compliance and Enforcement Priorities here.
Previous enforcement outcomes
The payment of infringement notices by Powershop follows the Federal Court’s order in December 2024 that Origin Energy Electricity Limited pay penalties totalling $12 million for breaches of life support obligations under the Retail Rules.