South Australia’s Taplin property group (Taplin) has been penalised $60,000 for allegedly unlawfully selling energy at three Adelaide shopping centres.
The Australian Energy Regulator (AER) alleges Taplin sold electricity to customers without having met its obligations under the National Energy Retail Law (Retail Law).
Selling energy usually requires authorisation, but a business such as Taplin that sells energy as part of its broader activities may be eligible for an exemption if it provides its customers with protections similar to those provided by authorised energy retailers.
AER Chair Paula Conboy said the AER works to ensure that all energy customers receive the protections to which they are entitled, regardless of whether they buy from an authorised retailer or an exempt seller.
"Exemptions provide customers with important protections. This includes requiring sellers to assist customers experiencing payment difficulties and to follow set processes before disconnecting a customer. These protections are fundamental and it is not acceptable that some customers may not be receiving them. The AER will continue to take action where businesses are not meeting these important obligations," said Ms Conboy.
The AER can issue an infringement notice where it has reason to believe a business has contravened a civil penalty provision of the Retail Law. The payment of a penalty specified in an infringement notice is not an admission of contravention of the Retail Law.
AER Media Manager Rory Cahill
[email protected] 03 9658 6506 / 0466 409 921
The Retail Law (which applies in New South Wales, the Australian Capital Territory, Tasmania, Queensland, and South Australia) sets out important obligations for energy sellers and provides key protections for customers.
Section 88 of the Retail Law requires that anyone selling energy to a person for premises must hold either a retailer authorisation or an exemption from the requirement to hold an authorisation.
Exemptions may be appropriate where the scale of the energy sales, or the relationship between the energy seller and the customer, is such that an authorisation is not necessary, for example where energy is sold incidentally to the main business of the sellers, or where it is provided as a community service or at cost or to a defined group of customers at one site. This may include retirement villages and shopping centres where the owner purchases energy from an authorised retailer then on-sells the energy to tenants or residents.
The AER’s Retail Exempt Selling Guideline sets out the AER’s approach to retail exemptions, including a full list of the types of activities which are exempt from the requirement to hold a retailer authorisation. The Guideline also sets out the conditions with which exempt sellers must comply.
In September 2016, the AER took enforcement against another property group, Stockland Corporation Ltd (Stockland), because it had reason to believe that Stockland had sold electricity to customers without holding either a retailer authorisation or retail exemption. Stockland paid penalties of $100,000.
The Australian Energy Regulator (AER) works to make all Australian energy consumers better off, now and in the future.
- We regulate electricity networks and covered gas pipelines, in all jurisdictions except Western Australia. We set the amount of revenue that network businesses can recover from customers for using these networks.
- We enforce the laws for the National Electricity Market and spot gas markets in southern and eastern Australia. We monitor and report on the conduct of energy businesses and the effectiveness of competition.
- We protect the interests of household and small business consumers by enforcing the Retail Law. Our retail energy market functions cover New South Wales, South Australia, Tasmania, the ACT and Queensland. We do not set the prices consumers pay.
We drive effective competition where it is feasible and provide effective regulation where it is not. We equip consumers to participate effectively, including through our Energy Made Easy website, and protect those who are unable to safeguard their own interests. We use our expertise to inform debate about Australia’s energy future. ---
