AGL Energy Limited a supplier of gas & coal based electricity is behaving badly yet again

AGL Energy Limited (AGL) sells and markets gas and electricity. It owns a number thermal stations, has an operational gas plant in the Camden area and approvals for exploration and production of coal seam gas in the Gloucester district in New South Wales. 

On 11 May 2015 Smart Company reported that:

The Australian Energy Regulator has penalised energy retailer AGL for disconnecting customers in hardship or on payment plans, with AGL South Australia and AGL Sales both receiving a $20,000 fine from the regulator.

Energy retailers are prohibited from disconnecting customers under certain circumstances, including when they are participating in a hardship program or a payment plan.

However the Australian Energy Regulator said in a statement this morning, it was notified by AGL of incidents in which nine of the company’s customers were wrongfully disconnected from their electricity supply.

This is not the first time that AGL has been in the news for behaving badly.

A quick Internet search brings up this disturbing timeline: 

* August 2003

Australia's largest energy retailer was today fined $100,000 on workplace safety breaches over the electrocution of a 36-year-old Melbourne carpenter.

AGL Electricity Ltd had faced a maximum fine of $250,000 over the man's death in February 1999.

The court heard that carpenter Paul Psaila suffered a fatal electric shock on the roof of a suburban Rosanna unit when he touched guttering carrying a 240-volt current coming from a live electricity cable attached to the home.

County Court judge Michael Strong said the work on installing the cable had been carried out by two linesmen seven weeks before.

It was a straightforward job which they had done many times before "but on this occasion the job was done incompetently, resulting in insulation on the cable being damaged".

A metal bracket "charged with electricity became a death trap", the judge said.

In sentencing, Judge Strong said: "The court must respond to the jury's verdict by sending a clear message to this industry that more-rigorous scrutiny is required of work by linesmen."

AGL was convicted by a jury of failing to ensure that people other than its employees were not exposed to health and safety risks.

* September 2004

Following NGE's intervention, I received a phone call from AGL's Victorian manager of Residential Marketing on 27/08/04. He apologized for the "misrepresentations of the sales staff", assured me the switching fee would not apply, and that the last $50 rebate would be paid. He gave me his mobile number to call direct if there were any problems.
On 02/09/04 I received another phone call from a different person presumeably from the same department. She said that the entire bill for the quarter would be waived because the new total ($14.67) was such a small amount, the next bill was due soon, and I'd been unhappy with the service.
The amended bill arrived on 06/09/04. Thanks to some creative accounting, the new invoice was for $29.34 (twice what it should have been after applying the rebate).
I've made two phone calls to the person I spoke to in August (unanswered - I left a message both times), and received one back from one of his colleagues. She said he was on a business trip, and offered to help in his stead. I explained that my invoice was wrong, and asked for a new one. She said she'd look into it, and would call back later. That was on Monday 13/09/04. Not surprisingly, I haven't heard anything since.
Given that "AGL prides itself [on] the ethics and honesty of [its] organisation" it would appear that that pride is undeserved. [Matter finally resolved in customers favour after six months of seeking redress]

* July 2005

AGL Gas Networks Ltd has been fined $325,000 following two gas explosions at a Kogarah shopping centre in 1995, in which two people died and 17 others were injured.
The company, based at North Sydney, was found guilty under the Occupational Health and Safety Act in the NSW Industrial Relations Commission sitting in Court Session for failing to ensure the health and safety of its employees and others not in its employ.
In November 1995 a gas pipeline at Railway Parade, Kogarah, was cut and capped by AGL in preparation for the demolition of four nearby shops.
The pipeline remained connected to the mains, and on 4 December the line severed, with the resulting gas leak causing explosions and fires.
An AGL Gas Networks Ltd maintenance crew sent to the scene after the first explosion did not have the necessary valve location map to enable them to find and shutdown the escaping gas.
While the maintenance crew searched for the shutdown valve and fire crews fought to extinguish the blaze, a second explosion occurred.
In imposing the penalty, Justice Monika Schmidt said: "I am satisfied that the risks to safety were foreseeable. They included the risk of death and injury, which must be reflected in the penalty imposed."

* August 2006

The Australian Energy Regulator has imposed a civil penalty of $20,000 on AGL Hydro Partnership over its use of the inflexibility and rebidding provisions of the National Electricity Rules with respect to its MCKAY1 generating unit on 22 March 2006. The AER issued an infringement notice alleging that AGL Hydro breached clause 3.8.22(c)(2)(i) of the rules by failing to provide a verifiable and specific reason for declaring the MCKAY1 generating unit as inflexible. As AGL Hydro has paid the infringement penalty, the AER's investigation of this matter is now closed.

* May 2008

A third Queensland electricity retailer will be issued with a fine over its handling of pensioners' power bills.

Queensland Energy Minister Geoff Wilson said the regulator had made formal findings against AGL, which had been advised of a $30,000 fine for breaching the Electricity Act.

* May 2009

June 2008 AGL became our electricity provider. This surprised us when we received the first "Dear Customer" letter from them in November, attempting to bill us all the way back to February!
In fact, we had been contracted to Simply Energy (gas + elec) for over a year and owned the house for four years. Every AGL customer "service" person attempts to convince us we just moved in!
Of course we called AGL after getting the November letter (actually two bills for different amounts). The help desk woman apologised, said she could see the account had been transferred to them in error, and promised to send us back to Simply Energy. "No need to worry about it". Famous last words.
Come April 2009, and two more envelopes arrive from AGL. Amount owing is over $1,100, please pay within two weeks. An entire afternoon wasted calling AGL then Simply Energy then AGL (with SE on the line), then AGL again. Each time the recorded voice said we owed a different amount! In the first call, AGL told me to tell SE to check MSATS (their common database) for the handover date. SE said it was June but AGL was billing back to February! SE confirmed we'd paid up to June. All good so far.
AGL claims that because 130 days had passed without hearing from SE, they _own_ our account, under law. They could well be right, but surely SE would be due compensation? AGL checked their own records and could see that they had reminded themselves in November to ask SE for a "winback", but never actually sent the message to them.
To add to the insult, two days after those phonecalls we received a letter from AGL thanking us for agreeing to this payment plan during your phonecall. We did nothing of the sort! We laughed when we saw the "instalment plan" was one payment of the full amount including the months already paid, due in June.  Ta.
The good thing about dealing with AGL is that you get to read up on what your rights are. You can read the entire ombudsman's website while you're on hold! In Victoria, utilities can't backbill residents for more than nine months' worth of power, and have to give an equivalent time to pay if requested. The longer they take to work their stuff out, the more free electricity we have received.
The last time I called them was a week ago, because they'd promised to call me by then. The guy was a lot more candid about the extent of their problems, said their complaints department was VERY busy and while they would try to ring me in the next week he couldn't guarantee it. Meanwhile (after I pressed him to say it) we should ignore the demands for payment. So we're relaxed and waiting ... next step the ombudsman because there's no way they can get away with this. [Resolved in the customers favour after what appears to be almost twelve months of negotiation]

* May 2010

trichloroethylene ingroundwater at a specific location beneath the Torrens Island Power Stationsite. The South Australia EPA was notified under Section 83A of the EnvironmentProtection Act.

* September 2010

AGL–Arrow Energy Moranbah Gas Project JV, Qld: In September 2010, protected vegetation on PL191 was overcleared by the Operator. A $2,000 Penalty Infringement Notice was issued by DERM in relation to the breach

* May 2011

In May 2011 a large drilling fluid spill occurred at AGL’s CSG well head at Camden North in NSW during routine maintenance. According to STOP CSG!, AGL failed to report the incident for two days until the leakage was shown on TV. 

* September 2012

In yet another classic example of excessive executive compensation while the rest of the nation is reeling from high prices and economic slowdown, officials of power firms in New South Wales are enjoying astronomical pay hikes while residents pay through the nose because of higher electricity rates. The Herald Sun reported that the managing director and chief executive of power firm AGL got 85 per cent pay hikes to $6.3 million from $3.4 million in 2011. The boost in compensation was justified by the 11.8 per cent rise of AGL's profit in 2011-12 at $482 million, thanks to the 18 per cent increase in power rates.

* 2012

AGL sent me a letter advising me that I had entered into a default contract with them because the electricity at that address was still being used despite the cancellation of the A/C. This puzzled me as I had not cancelled the contract with AGL. As requested I phoned the number listed in their letter. At the outset of the conversation with AGL I was required to identify myself by giving my name and DOB. When I asked who had cancelled my A/C, my request was denied on the grounds of privacy regulations. My response to this was that my privacy had been violated when a third party had been allowed to cancel my account with AGL. When my letter of complaint to the GM retail was not answered, a week later I sent an e-mail citing the issues raised .This proved more effective because Customer Relations then contacted me. Their case is that the new tenant next door initially gave the street number of my holiday house, later phoning to correct his error. If the tenant had made this correction before the letter about a default contract had been written, then the issue of a default contract is in my opinion a red herring. Instead AGL should have come clean with me. Alternatively if the tenant had not yet alerted AGL to this debacle, there was no need to send a letter concerning electricity consumption at the address initially given by the new tenant next door. In summary, despite their claim to the contrary, I cannot accept that AGL can cancel an A/C without checking with the person who responsible for the A/C. Even for a simple enquiry a customer is required to identify themselves. Secondly I am not confident that the default letter was written in good faith. If AGL already knew about the source of the confusion at the time of writing to me , they should have been frank and open. XXXX XXXX Address in question-XX XXXX XXXX XXXX XXXX

* March 2013

The New South Wales Environmental Protection Authority (EPA) has fined AGL Energy $15,000 over a gas leak from a coal seam gas well at the Rosalind Park gas plant in the suburb of Spring Farm.

* May 2013

The Federal Court has ordered by consent that AGL Sales Pty Ltd and AGL South Australia Pty Ltd pay combined penalties of $1.555 million for illegal door-to-door selling practices, following action by the Australian Competition and Consumer Commission. CPM Australia Pty Ltd, the marketing company used by the AGL companies, was also ordered to pay $200,000 for its role in the conduct.

* July 2013

The NSW Environment Protection Authority (EPA) has fined AGL $1,000 for failing to publish monitoring data under “community right to know” requirements of the Protection of the Environment Operations Act 1997.

* December 2013

Energy retailer AGL has been fined $35,000 after a salesman ignored a Do Not Knock sign.

Federal Court judge John Middleton punished AGL and its marketing company CPM for the conduct of a South Australian salesman.

"These penalties reflect the need to deter conduct of such seriousness by the relevant respondents and others in the door-to-door selling industry," he said in his judgment.

AGL South Australia was fined $35,000 while its marketing agent CPM, who contracted the salesman, was penalised $25,000 for trying to negotiate an energy supply agreement in November 2011.

He had remained on the premises despite the consumer having an image on the front door of a knocking fist with a line through it.

The maximum penalty is $50,000.

The NSW Environment Protection Authority (EPA) has issued AGL operations in Camden with a fine of $1,500 and an official caution for exceeding air pollutant, oxides of nitrogen (NOx) concentrations limits on two occasions in August this year.

* December 2014

POTENTIALLY contaminated wastewater used to frack AGL's Gloucester coal seam gas project has been dumped unlawfully into the Hunter's sewer system by the private company hired to treat it.

Transpacific, one of the nation's largest wastewater management firms, has been fined $30,000 by Hunter Water for releasing treated "flow-back" fluid from the gas project into the region's sewer network.

It comes after AGL and Transpacific were both explicitly warned by the water regulator that releasing the flow-back fluid was a breach of its wastewater criteria.

* January 2015

AGL operations at Gloucester have been suspended and the NSW Environment Protection Authority (EPA) is investigating after the company informed the authority that it had detected BTEX chemicals at its Gloucester coal seam gas project.

AGL suspended operations today after announcing BTEX chemicals were found in samples from its Waukivory operations, said EPA Chief Environmental Regulator Mark Gifford.

“AGL informed the EPA that it was aware of these elevated levels of BTEX chemicals on 15 January, but it did not make these results known to the EPA or the public until today,” said Mr Gifford.

“The EPA is very concerned at AGL’s lack of timeliness and transparency in informing us of these results and we will be conducting a full investigation.

“The EPA can confirm that fracking fluid additives used at the Waukivory operation were sampled and analysed by Government environmental officers in November 2014 before fracking activities were allowed to commence.

“These samples were analysed for BTEX chemicals, which were not detected. Identifying the source of the elevated levels of BTEX chemicals found in AGL’s samples will be part of the EPA’s investigation.”

* April 2015

Energy retailer AGL has been fined $700,000 for misleading customers in South Australia about discounts on their power bills.

Thousands of them will be entitled to a refund, likely to be about $30.

The Federal Court imposed the penalty on Wednesday, ordering the energy retailer to also pay $780,000 in refunds and $300,000 in costs.