Energy and gas giant Origin Energy has received a record $ 17 million fine after its automated processes breached legal obligations due to tens of thousands of customers facing financial hardship across Australia.
The Federal Court decision announced on Wednesday, which follows the legal action initiated by the Australian Energy Regulator, is the largest sanction ever imposed for violating national energy retail regulations.
Origin Energy, one of Australia’s largest energy and gas suppliers, has received a record $ 17 million fine for treating customers facing financial hardship. Credit: James Davies
For nearly four years, from 2018 to 2021, the automated processes that Origin had put in place for customers who had difficulties and payment difficulties caused them to default on hardship obligations on more than 100,000 occasions, the company acknowledged.
In total, more than 90,000 customers were affected in New South Wales, ACT, Queensland and South Australia. Illegin’s illegal automated processes included the unilateral establishment of new payment plans after previous plans had been canceled for non-payment, the increase in customers’ payment amounts without taking into account the ability to pay or the cancellation of payment plans in cases where he could not discuss with the client a review of his plans.
Australian energy regulator chairwoman Clare Savage said the court’s decision was a reminder that automated processes could be a “dangerous substitute” for human interaction with customers facing financial difficulties.
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“The application of inflexible automated processes to thousands of customers regardless of whether they can really meet the payments shows a total ignorance of the difficulties of national energy laws, which are designed to protect customers in vulnerable situations.” , said Savage.
“This message is even more important in the current market conditions where customers are facing significant pressures for the cost of living, including as a result of recent rises in energy prices.”
The Federal Court also ordered Origin to pay $ 200,000 in legal costs and to establish a compliance and training program to improve the way it treats clients with difficulties and those suffering financial difficulties.