Power comes with responsibility—Origin Energy hit with a record $17.6 million fine

Energy providers are a crucial part of our daily lives, powering our homes and ensuring that we have access to the comforts and necessities that electricity and gas provide. However, when these providers fail to meet their obligations, the consequences can be significant, particularly for vulnerable customers. This was starkly highlighted in the recent case of Origin Energy, which has been fined a record $17.6 million for breaches of Victorian energy rules, impacting nearly 670,000 customers. 

The Victorian Essential Services Commission, which took Origin to court, emphasised the importance of hefty penalties to prevent companies from viewing regulatory compliance as an optional or minor aspect of doing business. The fine imposed is the largest financial penalty for breaches of Victoria’s energy rules in the state’s history, sending a clear message to all energy retailers about the seriousness of these obligations.

The breaches, which occurred between December 2021 and May 2023, were serious and varied. Origin Energy admitted to several failings, including not providing clear ‘best offer’ messaging to over 655,000 customers, which is essential for consumers to make informed decisions about their energy plans. Additionally, the company failed to offer adequate support to 6,806 customers who were struggling to pay their bills, a critical oversight that could lead to significant stress and hardship for those affected.

Perhaps most concerning were the breaches that involved customers on life support. Origin failed to maintain accurate information for 10 such customers, a mistake that could have had life-threatening consequences. The company also admitted to overcharging 78 customers, pursuing 411 customers for amounts beyond a four-month back-billing limit, and other compliance failures.

Justice Michael Osborne, in his judgment, recognised that Origin had taken steps to improve its practices but insisted that the penalty must be substantial enough to act as a deterrent, not only to Origin but to all energy retailers. The court’s decision aims to ensure that energy providers prioritise compliance and consumer protection, rather than cutting corners to save costs.

In response to the court’s ruling, Origin’s executive general manager, Jon Briskin, issued an apology and assured that the company is dedicated to improving its compliance performance. He attributed many of the breaches to human error and outdated customer service systems, noting that a new, improved system is now in place. Briskin also stated that affected customers had been remediated where appropriate. ‘We are sorry we didn’t meet our regulatory obligations for these customers, and we are committed to doing better with significant resources dedicated towards improving compliance performance,’ he said.

This incident follows a previous fine in January, where Origin was penalised $1.6 million for sharing private details of family violence victims without consent and for pursuing other survivors for unpaid bills without considering the potential impact on them.

Ensuring energy providers uphold their obligations is crucial for consumer protection, especially for vulnerable customers. While Origin Energy has acknowledged its mistakes and taken steps to improve, this case serves as a reminder of the importance of regulatory compliance in the industry.

Have you ever encountered issues with your energy provider? Do you think penalties like this are effective in driving change? Feel free to share your thoughts and experiences in the comments below.

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