The Retail Law provides the AER with a range of possible enforcement options when breaches of obligations under the Retail Law and Rules occur.
By taking enforcement action the AER seeks to build compliance with obligations under the Retail Law and Rules for the benefit of customers by:
- stopping the breach and the behaviour that constituted the breach
- correcting the damage that the breach has caused
- preventing the same behaviour from reoccurring, and deterring other regulated entities from repeating it, and
- clarifying the operation of the Retail Law, Rules and Regulations.
In determining an appropriate enforcement response, the AER will consider a range of factors. Each case will be assessed on its merits, with regard to all relevant circumstances.
The AER has released its compliance procedures and guidelines for the Retail Law and Rules. Our Compliance and Enforcement Statement of Approach also applies to our role in the retail markets. These documents provide information to stakeholders on how the AER approaches its compliance and enforcement responsibilities under the Retail Law.
The guideline and Statement of Approach take effect in a particular jurisdiction only when that jurisdiction commences the National Energy Retail Law and Rules. The Retail Law and Retail Rules has commenced in the ACT, Tasmania, South Australia, New South Wales and Queensland. Victoria is yet to adopt the Retail Law. Western Australia and the Northern Territory are not part of the National Electricity Market and will not be adopting this framework.