Regulators have announced stronger penalties for energy businesses that breach consumer protections. 

“Consumers expect energy companies to play by the rules that are there to protect them, and if those rules are broken, the penalty must reflect the seriousness of the breaches in order to provide a deterrent,” says Australian Energy Regulator (AER) chair Clare Savage.

The AER will now be able to seek penalties of up to $10 million (or more for large companies) for alleged breaches of the energy laws under new provisions commencing this week. 

Other key changes to the AER’s powers under the new laws include the ability to:

  • require witnesses to attend for oral examination during investigations

  • seek court orders requiring compliance with compulsory notices to provide information or documents

  • seek orders that a person who has breached certain provisions of the National Energy Laws to perform a service for the benefit of the community or publish an advertisement about the breach

“A regulator investigating illegal misconduct should be able to compel those involved to answer questions where necessary. Previously, we have been unable to do this. These new powers will better equip us to do our job to protect consumers, while incentivising compliance,” Ms Savage said.

The criminal offence penalty for failing to comply with a notice, or for providing false or misleading information to the AER or Australian Energy Market Operator, has also increased to $6,300 for an individual or $31,500 for a corporation.

Increases to penalties apply to conduct from 29 January 2021 onwards.