AGL Energy (ASX:AGL) has been ordered by the Federal Court to pay $25m in penalties after it was found that four AGL subsidiaries breached the National Energy Retail Rules. The breaches related to failure to notify and refund approximately 500 customers within required timeframes for Centrepay payments.
The proceedings were brought by the Australian Energy Regulator (AER), and the Federal Court’s decision was announced on 19 December 2024.
In response, AGL expressed disappointment about the issue and apologised to affected customers. The company said the issue was identified in mid-2020, after which it implemented "significant process enhancements" to improve how it handles Centrepay payments.
The $25m penalty is notably larger than AGL had anticipated. The company stated it would "closely review the Court’s judgment and consider whether to appeal".
Despite the size of the penalty, AGL says it will not affect financial guidance for FY25. The company reaffirmed its guidance for underlying EBITDA to be between $1.87bn and $2.17bn, while underlying net profit is forecasted to range between $530m and $730m.
Shares in AGL closed 0.74% lower at $10.74 yesterday.
