Substantial increases in penalties for non-compliance in the energy sector

Substantial increases in penalties for non-compliance in the energy sector

AU Energy Compliance
Summary: As a result of recent reforms discussed below, non-compliant energy businesses in NECF now face penalties of up to 10 percent of their annual turnover or $10,000,000. Consequently, all energy businesses should seriously re-examine their compliance programs and regulatory controls. On 20 March 2020 Energy Ministers in what was then the COAG Energy Council agreed to implement changes to the National Energy Laws (national Electricity Law, National Gas Law, and National Energy Retail Laws) to provide for substantial increases to the civil penalties for non-compliance by energy businesses. The proposed changes were implemented by the Statutes Amendment (National Energy Laws) (Penalties and Enforcement) Act 2020 (Act), which was given Royal Assent on 22 October 2020 and the National Energy Regulations, came into force by Proclamation on 29 Jan 2021. The new penalty…
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