The Australian Energy Regulator (AER) is seeking special leave to appeal to the High Court from the Full Federal Court’s judgment upholding appeals by AGL Retail Energy Limited and three other subsidiaries of AGL Energy Limited (together, AGL).
The Full Federal Court’s decision set aside earlier findings that AGL had failed to comply with its overcharging obligations under rule 31 of the National Energy Retail Rules in relation to Centrepay payments.
The AER seeks the High Court’s ruling on important questions about the meaning and operation of the overcharging protections in the National Energy Retail Rules.
The AER took court action against AGL in December 2022, alleging it had debited hundreds of Centrelink customers’ accounts without authorisation and failed to notify and refund these customers within the required timeframes.
The AER believed the conduct was likely to cause widespread harm to vulnerable consumers.
This application reflects the seriousness with which the AER views this matter and its commitment to ensuring customers experiencing vulnerability are afforded the full rights and protections provided by the law.
As the application is before the Court, the AER will not comment further on the proceedings at this time.
Background
Centrepay is a voluntary bill-paying service that allows people to make regular deductions from their Centrelink payments for approved goods and services, including energy bills.
On 16 December 2022, the AER instituted proceedings in the Federal Court alleging that AGL failed to comply with its overcharging obligations under the National Energy Retail Rules in relation to Centrepay payments made by former customers.
The AER alleged that, after becoming aware of the overcharges, AGL failed to notify affected customers within the required timeframe, refund, repay or credit the amounts as required, and implement policies, systems and procedures to effectively monitor compliance.
On 23 August 2024, the Federal Court found that AGL had overcharged 483 Centrepay customers in 16,156 instances between December 2016 and November 2021 and had contravened the National Energy Retail Rules and National Energy Retail Law.
On 19 December 2024, the Federal Court ordered AGL to pay penalties totalling $25 million.
On 19 August 2026, the Full Federal Court allowed AGL’s appeal, dismissed the AER’s cross-appeal and set aside the earlier findings and penalty.