The Full Federal Court today upheld an appeal by AGL Retail Energy Limited and three other subsidiaries of AGL Energy Limited (together, AGL) against findings and penalties imposed by the Federal Court in December 2024 for allegedly failing to comply with their overcharging obligations related to Centrepay payments.
The AER took this court action against AGL in December 2022 because of the seriousness of the alleged conduct and that it impacted a large number of customers including those who were likely to be experiencing vulnerability and financial hardship. The AER believed it was important to run this case to ensure consumers receive the protections they are entitled to.
The AER is now carefully reviewing today’s judgment. We are also considering the judgment in the context of Federal Court proceedings instituted against four Origin Energy subsidiaries in December 2025 for alleged breaches of overcharging rules in relation to Centrepay payments.
The AER will continue to investigate conduct impacting consumers experiencing vulnerability and take enforcement action where warranted.
The AER will not be making any further comment at this time.
Notes to Editors
Judgment
A copy of today’s decision can be found on the Federal Court website.
National Energy Retail Rules and National Energy Retail Law
The National Energy Retail Rules impose legal obligations on energy retailers in respect of circumstances where a customer has been overcharged.
The National Energy Retail Law imposes legal obligations on regulated entities to establish arrangements to monitor compliance with the National Energy Retail Law and Rules.
Court proceedings
On 16 December 2022, the AER instituted proceedings in the Federal Court alleging that AGL Retail Energy Limited and three other subsidiaries of AGL Energy Limited (together, AGL) failed to comply with the overcharging obligations in the National Energy Retail Rules.
The affected customers were using a portion of their Centrelink payments to help pay their energy bills but had stopped receiving services from AGL at the time of the alleged conduct.
The AER alleged that AGL, after becoming aware of overcharges, failed to:
- notify the affected customers of the overcharges within the specified timeframe;
- refund, repay or credit the overcharged amounts as required; and
- implement policies, systems and procedures to enable it to efficiently and effectively monitor its compliance.
The AER sought civil penalties, declarations, an order requiring the implementation of a compliance program and costs.
In December 2024, the Federal Court ordered AGL to pay penalties totalling $25 million for failing to comply with its overcharging obligations related to Centrepay payments.
AGL appealed that decision, with the appeal heard in November 2025.