The Australian Energy Regulator (AER) has issued fines to Red Energy and Dodo for alleged breaches of their obligations regarding consumer hardship and payment plan protections.
Red Energy paid seven infringement notices totalling $474,600 issued by the Australian Energy Regulator (AER) for allegedly removing hardship and payment plan protections from consumers when they moved house.
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This left these consumers vulnerable to disconnection and debt collection processes, including credit default listings.
Dodo Power & Gas has paid six infringement notices totalling $406,800 for alleged breaches of the National Energy Retail Rules (the Retail Rules) that protect consumers experiencing hardship and payment difficulties.
In addition to the infringement notice penalties, the AER has accepted court enforceable undertakings from both companies requiring them to review and improve their policies, staff training and compliance systems.
The AER took enforcement action against Dodo following a proactive compliance review of energy retailers. The findings of the AER’s review prompted an investigation into Dodo’s hardship and payment plan practices. The investigation also identified concerns about Dodo’s compliance systems and processes for its hardship, payment plan and direct debit practices.
AER deputy chair Justin Oliver said energy companies had an important ongoing responsibility to identify and support customers facing financial difficulties to manage their energy bills.
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“It is essential that retailers have the right compliance systems and processes in place to ensure consumers experiencing vulnerability receive the important hardship protections they are entitled to under the Retail Rules.
“With ongoing cost-of-living pressures impacting many households, the AER remains firmly focussed on protecting consumers. This includes proactively monitoring retailers and taking action where necessary to ensure energy consumers are fully afforded their rights under the relevant rules and laws.”
