Court decision
Release date

$6 million in penalties

The Federal Court has ordered that AGL Energy Ltd subsidiaries, AGL Macquarie Pty Ltd (AGLM) and AGL Loy Yang Marketing Pty Ltd (AGLL), operators of AGL’s Bayswater and Loy Yang power stations, pay penalties totalling $6 million for breaches of the National Electricity Rules.

In proceedings brought by the Australian Energy Regulator (AER), the Federal Court found in periods between September 2018 and August 2020 the AGL subsidiaries did not comply with dispatch instructions given to them by the Australian Energy Market Operator (AEMO) in relation to frequency control ancillary services (FCAS) they had offered, and were paid, to provide.

The penalties reflected the respondents’ cooperation with the AER’s investigation, and their admission of the alleged breaches before the AER commenced proceedings.