New Round of Enforcement Actions

New Round of Enforcement Actions

AU Energy Compliance
A fresh round of enforcement actions have been announced by the Essential Services Commission of Victoria (ESC). Energy sellers should review the announcements made by the ESC and ensure that they have adequate controls in place to avoid the same issues. Explicit Informed Consent On 26 July 2021, the ESC has announced that Simply Energy had paid penalty notices totalling $2.5 million after being issued 125 penalty notices. The penalty notices were issued to Simply Energy after two external sales agents allegedly undertook deliberate fraud to transfer 525 gas and electricity accounts at 264 properties without any contact to obtain explicit informed consent. Energy retailers are required to obtain explicit informed consent before transferring a customer. We've looked at the requirements relating to explicit informed consent in detail here and…
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Explicit Informed Consent: What does it actually mean?

Explicit Informed Consent: What does it actually mean?

AU Energy Compliance
Explicit informed consent is a ubiquitous term in the energy industry and is found in the national energy retail rules as well as in the Victorian energy law. The penalties for a retailer failing to obtain explicit informed consent can be significant, but what does the term actually mean? “Explicit informed consent is a key protection and it is critical to ensuring that customers are confident engaging in the energy market,”…“The AER takes any failure by retailers to meet this obligation very seriously, and will take enforcement action in appropriate cases.” – AER Board Member Jim Cox. The consequences of non-compliance The Australian Energy Regulator (AER) has taken action against energy retailers who failed to obtain EIC. “In 2015, the Federal Court ordered by consent that EnergyAustralia Pty Ltd (EnergyAustralia) pay penalties of…
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