Australian Energy Regulator v Origin Energy Electricity Ltd [2022] FCA 802

Australian Energy Regulator v Origin Energy Electricity Ltd [2022] FCA 802

Origin breached the Retail Laws and Retail Rules by automating aspects of its 'Power On Program' for hardship customers, resulting in systemic failures to maintain and implement hardship policies, failure to consider capacity to pay, and wrongful de-energisation of customers. Given the seriousness, systemic nature, and customer impact, the agreed declarations, civil penalties totalling $17 million, and compliance program orders are appropriate to record the contraventions, deter future breaches, and ensure future compliance.

Jurisdiction
Australia
Judgment Date
29 June 2022
Procedural Posture
Civil Proceeding / Final Judgment and Orders After Admissions and Joint Submissions
Outcome
Declarations made; civil penalties totalling $17 million imposed; compliance and training program ordered; costs orders made; proceeding otherwise dismissed.
Legal Topics
['hardship Customers' 'automated Systems' 'retail Laws' 'retail Rules' 'civil Penalty Provisions' 'compliance Programs' 'disconnection Processes' 'pecuniary Penalties']
['consumer Law' 'energy Law' 'administrative Law'] ['hardship Customers' 'automated Systems' 'retail Laws' 'retail Rules' 'civil Penalty Provisions' 'compliance Programs' 'disconnection Processes' 'pecuniary Penalties']

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Procedural Posture

Civil Proceeding / Final Judgment and Orders After Admissions and Joint Submissions

Legal Issues

  1. 1 ["Whether Origin's automated 'Power On Program' system caused breaches of applicable Retail Laws and Retail Rules concerning hardship customers" 'Appropriateness of admissions, declarations, and civil penalty orders' 'Whether the proposed compliance orders and penalties are justified and sufficient' 'Identification of systemic contraventions in payment plans and disconnections for hardship customers']

Ratio Decidendi

Origin breached the Retail Laws and Retail Rules by automating aspects of its 'Power On Program' for hardship customers, resulting in systemic failures to maintain and implement hardship policies, failure to consider capacity to pay, and wrongful de-energisation of customers. Given the seriousness, systemic nature, and customer impact, the agreed declarations, civil penalties totalling $17 million, and compliance program orders are appropriate to record the contraventions, deter future breaches, and ensure future compliance.

Court Disposition

Declarations made; civil penalties totalling $17 million imposed; compliance and training program ordered; costs orders made; proceeding otherwise dismissed.

Orders

  • ['Declarations of contravention as detailed in reasons' 'Civil penalties: $14,115,000 (Origin Energy), $1,476,000 (Origin Retail), $1,313,000 (Origin LPG), $92,500 (Sun Retail), $3,500 (OC Energy), all to be paid to the Commonwealth within 30 days' "Order Origin Energy to pay $200,000 towards applicant's costs...