Infringement notices issued to Red Energy for failing to inform customers of their options and obtain explicit informed consent

Infringement notice
Release date: 
22 March 2016
Related provisions: 
  • Section 38(b) of the National Energy Retail Law
  • Rule 48 of the National Energy Retail Rules


Energy retailer Red Energy Pty Ltd has paid penalties totaling $40 000 following the issue of two infringement notices by the AER in respect of alleged breaches of the National Energy Retail Law and National Energy Retail Rules.

The AER issued one infringement notice to Red Energy as it had reason to believe that it had breached the Retail Rules, between at least 2013 and 2015, as the notices Red Energy sent to its customers did not contain the necessary information about a customer’s end of contract options.

The second infringement notice was issued as the AER had reason to believe that between February 2013 and August 2015, Red Energy breached the Retail Law by placing customers who took no action after receiving the notice onto a new Red Energy contract without the explicit informed consent of those customers.