Under the National Energy Retail Law and the National Energy Retail Rules, the AER may carry out a compliance audit or require a retailer or distributor to carry out a compliance audit. Compliance audits must be carried out in accordance with the AER Compliance Procedures and Guidelines. The AER has also released a Practice Guide for Compliance Audits to supplement the information on compliance audits in the Guidelines.
Details of specific audits and results are below.
2017
Disconnections audit
Five energy retailers participated in the audit with respect to provisions around disconnections and compliance with the AER Compliance Guideline.
In conducting the audit, the auditor was required to assess the businesses compliance with the Retail Rules relating to disconnections using a ‘traffic light’ approach.
Under this approach:
- ‘green’ indicates a level of general compliance and that all or most requirements of the obligation have been met.
- ‘yellow’ indicates partial compliance and that some requirements of the obligation have not been met.
- ‘red’ indicates non-compliance and that the obligation has not been met or could not be demonstrated.
Summary of audit findings
- AGL audit summary sheet ( PDF 196.35 KB )
- Alinta Energy audit summary sheet ( PDF 197.36 KB )
- Ergon Energy audit summary sheet ( PDF 195.15 KB )
- Lumo Energy audit summary sheet ( PDF 196.42 KB )
- Simply Energy audit summary sheet ( PDF 193.88 KB )
2018
Hardship audit
Four energy retailers participated in the audit with respect to protections for hardship customers. The hardship audits targeted businesses’ systems and process for managing relevant obligations and compliance with the AER Compliance Guideline.
In conducting the audits, auditors were required to assess the businesses’ compliance using a ‘traffic light’ approach.
Under this approach:
- ‘green’ indicates a level of general compliance and that all or most requirements of the obligation have been met.
- ‘yellow’ indicates partial compliance and that some requirements of the obligation have not been met.
- ‘red’ indicates non-compliance and that the obligation has not been met or could not be demonstrated.
Summary of audit findings
- ActewAGL Retail hardship audit summary sheet ( PDF 23.05 KB )
- Aurora Energy hardship audit summary sheet ( PDF 23.63 KB )
- M2 hardship audit summary sheet ( PDF 24.63 KB )
- Origin Energy hardship audit summary sheet ( PDF 23.07 KB )
Life support audit
Energex participated in an audit of its systems and processes for managing compliance with obligations to life support customers, including its obligations to provide notice of planned interruptions and to maintain a register of life support customers. The audit also considered compliance with the AER Compliance Guideline.
In conducting the audit, the auditor was required to assess the businesses’ compliance using a ‘traffic light’ approach.
Under this approach:
- ‘green’ indicates a level of general compliance and that all or most requirements of the obligation have been met.
- ‘yellow’ indicates partial compliance and that some requirements of the obligation have not been met.
- ‘red’ indicates non-compliance and that the obligation has not been met or could not be demonstrated.
Summary of audit findings
2019
Explicit informed consent audit
Three energy retailers participated in a compliance audit in connection with their obligations under the National Energy Retail Law and Rules to obtain and record customers’ explicit informed consent to certain transactions. These include the transfer of a customer from one retailer to another, the entry by a customer into a market retail contract, and any term or condition in a market retail contract that provides for the variation of tariffs, charges or benefits to the customer under that contract.
Auditors were asked to assess the adequacy and effectiveness of compliance policies, procedures and systems in a number of key areas, and to assign an overall grading of:
- Adequate/Effective: Minimal or no action required, with only minor and low risk findings. Improvement opportunities exist to achieve best practice in meeting the relevant obligations.
- Partially adequate/effective: Improvement is required to some key processes and controls, and is likely to require substantial effort in order to support compliance with the relevant obligations.
- Inadequate/Ineffective: Significant improvement is required, and may require urgent revision to or implementation of processes and controls in order to support compliance.
Summary of audit findings
- Alinta Energy explicit informed consent audit summary - November 2019 ( PDF 136.88 KB )
- Amaysim explicit informed consent audit summary - November 2019 ( PDF 134.58 KB )
- Simply Energy explicit informed consent audit summary - November 2019 ( PDF 138.7 KB )
2020
Life support audit
Retailers Momentum Energy, Mojo Power, Ergon Energy and distributors Endeavour Energy, Evoenergy and Essential Energy were required to conduct a compliance audit in connection with their life support obligations under the National Energy Retail Law and Rules.
The audits assessed the adequacy and effectiveness of compliance policies, procedures and systems in a number of key areas, and assigned an overall grading of:
- Adequate/Effective: Minimal or no action required, with only minor and low risk findings. Improvement opportunities exist to achieve best practice in meeting the relevant obligations.
- Partially adequate/effective: Improvement is required to some key processes and controls, and is likely to require substantial effort in order to support compliance with the relevant obligations.
- Inadequate/Ineffective: Significant improvement is required, and may require urgent revision to or implementation of processes and controls in order to support compliance.
Summary of audit findings
- Ergon Energy QLD life support audit summary - June 2020 ( PDF 113.63 KB )
- Essential life support audit summary - June 2020 ( PDF 119.98 KB )
- Evoenergy (Electricity) life support audit summary - June 2020 ( PDF 117.29 KB )
- Mojo life support audit summary - June 2020 ( PDF 215.38 KB )
- Momentum life support audit summary - June 2020 ( PDF 212.23 KB )
- Evoenergy (Gas) life support audit summary - June 2020 ( PDF 116.16 KB )
- Endeavour life support audit summary - June 2020 ( PDF 210.36 KB )
2021
Hardship audit
AGL was required to conduct a compliance audit in connection with hardship and disconnection obligations under the National Energy Retail Law and Rules. The audit also considered compliance with the AER Compliance Procedures and Guideline (2018).
The audit assessed the adequacy and effectiveness of compliance policies, procedures and systems in a number of key areas, and assigned an overall grading of:
- Adequate/Effective: Minimal or no action required, with only minor and low risk findings. Improvement opportunities exist to achieve best practice in meeting the relevant obligations.
- Partially adequate/effective: Improvement is required to some key processes and controls, and is likely to require substantial effort in order to support compliance with the relevant obligations.
- Inadequate/Ineffective: Significant improvement is required, and may require urgent revision to or implementation of processes and controls in order to support compliance.
Summary of audit findings
Performance reporting audit
Retailers EnergyAustralia, Red Energy, 1st Energy and M2 Energy were required to conduct a compliance audit in connection with performance reporting obligations under the National Energy Retail Law and Rules.
The audits assessed the adequacy and effectiveness of compliance policies, procedures and systems in a number of key areas, and assigned an overall grading of:
- Adequate/Effective: Minimal or no action required, with only minor and low risk findings. Improvement opportunities exist to achieve best practice in meeting the relevant obligations.
- Partially adequate/effective: Improvement is required to some key processes and controls, and is likely to require substantial effort in order to support compliance with the relevant obligations.
- Inadequate/Ineffective: Significant improvement is required, and may require urgent revision to or implementation of processes and controls in order to support compliance.
Summary of audit findings
- EnergyAustralia performance reporting audit summary - March 2021 ( PDF 122.66 KB )
- Red Energy performance reporting audit summary - March 2021 ( PDF 326.54 KB )
- 1st Energy performance reporting audit summary - March 2021 ( PDF 261.6 KB )
- M2 Energy performance reporting audit summary - March 2021 ( PDF 122.08 KB )
Hardship audit
Retailers Simply Energy, Alinta Energy, ReAmped Energy and Powershop Australia were required to conduct a compliance audit in connection with hardship and disconnection obligations under the National Energy Retail Law and Rules. The audit also considered compliance with the AER Compliance Procedures and Guideline (2018).
The audit assessed the adequacy and effectiveness of compliance policies, procedures and systems in a number of key areas, and assigned an overall grading of:
- Adequate/Effective: Minimal or no action required, with only minor and low risk findings. Improvement opportunities exist to achieve best practice in meeting the relevant obligations.
- Partially adequate/effective: Improvement is required to some key processes and controls, and is likely to require substantial effort in order to support compliance with the relevant obligations.
- Inadequate/Ineffective: Significant improvement is required, and may require urgent revision to or implementation of processes and controls in order to support compliance
Summary of audit findings
- Simply Energy - Customer hardship and disconnections compliance audit summary - March 2022 ( PDF 277.25 KB )
- Alinta Energy - Customer hardship and disconnections compliance audit summary - March 2022 ( PDF 260.36 KB )
- ReAmped Energy - Customer hardship and disconnections compliance audit summary - March 2022 ( PDF 105.48 KB )
- Powershop Australia - Customer hardship and disconnections compliance audit summary - March 2022 ( PDF 150.72 KB )