4 Months not prompt enough to fix customers’ meters

Share on twitter
Share on linkedin
Share on facebook

For the failure to promptly fix meters, the AER has issued eight infringement notices which led three AGL retailers to pay a total of 160,000 in penalties. Each infringement notice cost the AGL entities $20,000.

The infringement notices were issued as the AER found that there were sufficient grounds to believe that there was a breach of clause 11.87.7(h) of the National Electricity Rules (NER). The provision requires that a ‘financially responsible Market Participant’ receiving a notice of a metering installation malfunction under clause 11.87.7(g)(3) must ‘promptly appoint a Metering Coordinator’.

Note, Embedded Network Retailers are currently not considered ‘financially responsible Market Participants’. However, if the planned changes by the AEMC come into effect it is likely that the same rules apply to Embedded Network Retailers.

The infringement notices offer some guidance on how the AER interprets the retailer’s obligation to ‘promptly appoint a Metering Coordinator’. In the most significant case, AGL South Australia Pty Ltd appointed a Metering Coordinator 4 months after the infringement notice was issued. The AER found that 4 months to appoint a Metering Coordinator was not reasonable in the circumstances. In other cases the AER found 6 months or 8 months insufficient.

In summary, the infringement notices illustrate that the AER is unlikely to consider 4 months as a reasonable time to appoint a Metering Coordinator to fix customer meters that are faulty. However, this does not mean that an appointment under 4 months will be considered reasonable. Rather the infringement notices illustrate the pressing need for retailers to respond to notices of faulty meters with great urgency.

More to explorer

Technicians installing photovoltaic solar panels on roof of house.

Compliance Quarter’s Submission to the AER’s Review of the Compliance Procedures and Guidelines

On 11 April 2024, Compliance Quarter put forward its submission on proposed changes to the AER Compliance Procedures and Guidelines. The AER is reviewing its Compliance procedures and guidelines, which set out the manner and form in which energy businesses in jurisdictions that have adopted the National Energy Retail Law must submit compliance information and data to the AER. We argue that there should be consideration of measures to incentivise early reporting of potential breaches. These may, for example, take the

person wearing foo dog costume

Obligations of Energy Retailers Regarding Best Offer Information

Energy retailers in Victoria have specific obligations under the Energy Retail Code of Practice to provide clear information to customers about their ‘best offer’ – that is, the plan that would minimize the customer‘s energy costs based on their usage history. The objective is to ensure small customers can easily understand whether they are on the retailer‘s best plan for them and how to access the retailer‘s best offer if not. One of the significant challenges in the energy sector (as in banking and elsewhere) is that customers

low angle photo of sydney opera house australia

Guide to the National Energy Retail Rules

The National Energy Retail Rules (NERR) are a set of rules that govern the sale and supply of electricity and gas by retailers to consumers in Australia, alongside the related National Energy Retail Law (NERL). The NERR came into effect on 1 July 2012 in Tasmania, the Australian Capital Territory, and the Commonwealth. South Australia followed on 1 February 2013, New South Wales on 1 July 2013, and Queensland on 1 July 2015. The NERR do not yet apply in

Leave a Reply

Your email address will not be published. Required fields are marked *