Energy enforcement

Ergon Energy Retail charged standard retail contract customers on tariffs 12B and 22B prices that were not the notified prices for those tariffs between July and November 2021. Section 22A(2) of the National Energy Retail Law (Queensland) requires a retailer to charge small customers who are supplied under a standard retail contract the notified prices.

Origin Energy is reimbursing customers who were incorrectly charged payment processing and paper bill fees on its standing offers between January and April 2021. Under section 22A of the National Energy Retail Law (Queensland), standing offer customers in Queensland cannot be charged payment processing or paper bill fees.

AGL Energy is reimbursing customers who were incorrectly charged late payment fees on its standing offers between January 2015 and August 2020. Under section 22A of the National Energy Retail Law (Queensland), standing offer customers in Queensland cannot be charged late payment fees. Our media release, AGL’s progress reports, and the enforceable undertaking agreed between the QCA and AGL, are available below.

In March 2020, the Queensland Government announced that Energex and Ergon Energy would cease power disconnections for households during the coronavirus disaster. Energy Queensland then advised the QCA that Energex and Ergon would use the ‘main switch and sticker’ (MSS) process to disconnect vacant properties during the disaster. The MSS process involves Energex or Ergon placing a sticker over the main switch at a customer’s premises instead of physically disconnecting supply by, for instance, removing the fuse.

On 5 May 2020 the QCA issued warning notices to Energex and Ergon Energy regarding their use of the MSS process to disconnect vacant properties during the coronavirus disaster.

Energex and Ergon are allowed, under the Electricity Distribution Network Code, to use the MSS process to disconnect premises where a physical disconnection would result in the temporary disconnection of multiple premises – such as in unit blocks. The QCA added the MSS process to the code in January 2014 (see our final decision for details).

The QCA appreciated that using the process to disconnect vacant properties is intended to support the decision to not disconnect customers facing difficulty paying their electricity bills during the coronavirus disaster. However, the QCA was concerned that using the process to disconnect vacant properties presented safety risks to customers and potentially the general public, and presented financial risks to electricity retailers.

Following advice from Energy Queensland, on 25 May 2020 the QCA informed Energy Queensland of its decision not to issue code contravention notices to Energex or Ergon. Energy Queensland’s advice and the QCA’s response to Energy Queensland are available below.

We directed Origin Energy to reimburse all affected customers after we identified late payment fees in Origin’s standing offers. Under section 22A of the National Energy Retail Law (Queensland), standing offer customers in Queensland cannot be charged late payment fees. Our media releases and Origin’s remediation reports are available below.

We investigated Ergon Energy Queensland (Ergon Retail) for breaching the National Energy Retail Law (Queensland) by overcharging large regional business customers.

Ergon Retail is legally required to charge its large customers the regional retail notified electricity prices, set by the QCA each year.

However, Ergon Retail charged large regional businesses for metering costs, in addition to notified prices, since 1 January 2017.

We wrote to Ergon Retail to cease charging these amounts immediately and commenced a full investigation.

Based on the evidence it appeared that no residential or small business customers were affected—only large business customers consuming more than 750 MWh per year were affected.

Any large business customers in regional Queensland with concerns about their bills can contact us here.

In September 2017, we issued a warning notice to Ergon regarding Ergon’s failure to meet the required standard for meter reconfiguration requests.

A meter reconfiguration service order request occurs where a retailer requests a distributor to reconfigure or reprogram a meter. Typically, a retailer would make this request to facilitate a change in tariff for a customer; for example, to change from one off-peak control load tariff to another.

Ergon met the required standard each month from November 2017 to April 2018, and in June 2018 we finalised the matter.

On 16 November 2010, we issued a warning notice to Ergon Energy on the basis of its failure to meet five out of six if its MSS in two consecutive years (2008–09 and 2009–10). Our view that there was a reasonable possibility that it would again fail to meet its MSS in 2010–11. A copy of the warning notice issued to Ergon Energy can be downloaded below.

On 27 October 2011, following an assessment of information provided by Ergon Energy, we decided not to issue Ergon Energy with a code contravention notice on the basis that it had met the requirements of the warning notice.

On 25 July 2008, we issued Energex with a warning notice regarding its breach of clause 5.7 of the Electricity Industry Code. A copy of the warning notice can be downloaded below.

On 25 September 2008, we decided not to issue a code contravention notice, having considered Energex’s response to the warning notice.

This decision was conditional on Energex completing the actions it had proposed in its remedial plan and providing us with progress reports.