Locality Planning Energy (LPE) has paid two infringement notices totalling $135,600 issued by the Australian Energy Regulator (AER) for alleged breaches of the National Electricity Law.
LPE is an electricity retailer that services several embedded networks, primarily across Queensland. The AER alleged LPE breached section 11(2) of the National Electricity Law by owning embedded networks at residential sites on Bribie Island and in Brisbane between 2021 and 11 July 2022, without being registered with the Australian Energy Market Operator or exempted by the AER from the requirement to be registered.
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The lack of a relevant registration or exemption meant more than 100 consumers at these sites may not have been afforded the important protections they were entitled to, including protections related to safety, pricing, and access to retail competition.
AER deputy chair Justin Oliver said the AER would continue to monitor and act to protect consumers supplied through embedded networks.
“As we see continued growth in the number of embedded networks across the country, this outcome is a timely reminder to all owners and operators of these sites that they have important obligations to consumers, including ensuring they have the relevant registration or exemption to own and operate these networks,” Oliver said.
“Without a registration or exemption, embedded network owners and operators are not required to comply with the essential consumer protections contained in the National Electricity Law and Rules or the AER’s Network Exemption Guideline.”
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Network exemptions were subsequently registered for these embedded network sites for LPE on 30 September 2022.
The payment of infringement notices by LPE follows enforcement action taken by the AER in 2023 in relation to embedded networks, including instituting proceedings against CAM Engineering and Construction and accepting a court enforceable undertaking from Trinity Place Investments.
