AGL Energy (ASX:AGL) has been ordered by the Federal Court to pay $25 million in penalties after four AGL subsidiaries were found to have breached national energy retail rules. The breaches related to the failure to notify and reimburse approximately 500 customers within the required timeframe for Centrepay payments.
The proceedings were initiated by the Australian Energy Regulator (AER) and the Federal Court’s decision was announced on December 19, 2024.
In response, AGL expressed its disappointment with the issue and apologized to affected customers. The company said the issue was identified in mid-2020, after which it implemented “significant process improvements” to improve the way it handles Centrepay payments.
The $25 million fine is significantly higher than AGL anticipated. The company said it would “carefully review the Court’s judgment and consider appealing.”
Despite the size of the penalty, AGL says it will not affect financial guidance for FY25. The company reaffirmed its underlying EBITDA guidance of between $1.87 billion and $2.17 billion , while underlying net profit is expected to be between $530 million and $730 million.
AGL shares closed down 0.74% at $10.74 yesterday.
