Australian retail supplier Origin Energy has paid AUS$80,000 in penalties issued by the Australian Energy Regulator (AER) after it allegedly unlawfully disconnected 54 premises between January 2018 and May 2019.

Origin has also provided the AER with a court enforceable undertaking outlining steps it will take to prevent further wrongful disconnections, including a systems and processes audit.

The AER said in a news release that, "AER Chair Paula Conboy said the AER’s investigation found systemic issues with Origin’s management of customer disconnections. Origin did not have adequate processes in place to satisfy the disconnection obligations in the National Energy Retail Rules (Retail Rules)."

"The affected customers had contacted Origin to resolve their outstanding issues only to be unexpectedly disconnected," AER said

"We expect energy companies to follow the energy laws, particularly in relation to consumer protection, and we will take enforcement action where we identify serious compliance issues," Ms Conboy said.

The enforceable undertaking includes a commitment to engage an independent auditor, approved by the AER, to audit Origin’s training and processes.

The AER said, "Origin has acknowledged in the undertaking that it wrongfully disconnected the customers"

Conboy said the AER would take a dim view of continued wrongful disconnections by Origin, and sounded a warning to other retailers to take heed.

"Customers must only be disconnected as a last resort. Our investigation found that Origin repeatedly failed to ensure a disconnection order was cancelled when it should have been," Conboy said

Rule 116 of the National Energy Retail Rules sets out the circumstances where a retailer may disconnect an energy customer. In particular, rule 116 prohibits a retailer from arranging to disconnect a customer’s premises where that customer:

• is a hardship customer or residential customer and is adhering to a payment plan

• has an amount owing that is less than the amount approved by the AER (currently AUS$300) and the customer has agreed with the retailer to repay the amount.

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