AGL fined $924,600 for raising prices for 15,845 customers

Energy retailer AGL Sales Pty Ltd has paid $924,600 in penalties for raising prices for 15,845 residential and small business customers, allegedly in breach of Victoria’s energy rules.

This resulted in AGL charging customers more than the law allowed on 49,394 occasions, to the combined value of $924,107.

• On average, small business customers were charged approximately $979 more than allowed
• On average, residential customers were charged approximately $21 more than allowed, but for 46 customers the amount exceeded $100.

To give customers price certainty, the Energy Retail Code of Practice limits tariff increases to once a year on designated dates. 

The Essential Services Commission served the penalty notices on AGL for allegedly increasing gas and electricity tariffs on days that were not designated tariff change dates, between July 2020 and June 2023.

AGL repaid affected customers, apologised and applied a ‘goodwill credit’ to their bills.

Essential Services Commission Chairperson Gerard Brody said rules protecting customers from unexpected price increases are particularly important given cost-of-living pressures facing many people.

“AGL’s conduct put an unnecessary financial burden on households and small businesses at a time when many were already under pressure,” he said. 

“Victoria’s energy laws are designed to give customers tariff certainty, helping people budget and manage their finances. 

“Breaches like this weaken public trust in the energy sector, which should ensure fairness and certainty in pricing so customers know they’re not being overcharged,” Commissioner Brody said.