Systems & Processes

Legislative non-compliance summary

The number of environmental regulatory reportable incidents in FY21 increased from nine to eleven in FY21. AGL Energy received two official cautions and two penalty infringement notices (PINs) for events that occurred in FY21. AGL Energy entered into an Enforceable Undertaking on 2 September 2020 with the NSW EPA in relation to an event that occurred on 4 September 2019.

Legislative non-compliance summary for FY21	Number	Details
Legislative non-compliances resulting in adverse court findings	1	On 11 November 2019, the Australian Energy Regulator (AER) commenced proceedings against AGL Energy retail entities AGL Sales Pty Ltd, AGL Retail Energy Limited, AGL South Australia Pty Ltd and Powerdirect Pty Ltd alleging that those entities had ‘failed to submit to the AER, in the manner and form (including by the date or dates) required by the AER (Retail Law) Performance Reporting Procedures and Guideline (the Guidelines), information and data’ in contravention of section 282(1) of the National Energy Retail Law (NERL). On 20 May the matter was resolved by agreement and on 12 November 2020, the Federal Court issued a judgment declaring contraventions of s282(1) of the NERL and ordering AGL Energy pay a pecuniary penalty of $1.3 million and costs of $100,000 (in total) by 11 December 2020.
Environmental regulatory reportable (ERR) incidents	11
Environmental penalty infringement notices (PINS)	2	1. On 26 March 2021, the NSW Environment Protection Authority (NSW EPA) issued a penalty infringement notice to AGL Macquarie Pty Ltd (AGLM) for an alleged failure to comply with a licence condition between 31 August to 1 September 2020, which requires AGLM to not exceed its prescribed solid particles concentration limits at Liddell Power Station provided under AGLM's environment protection licence. 2. On 24 June 2021, the NSW EPA issued a penalty infringement notice for an alleged pollution of waters offence for an event that occurred at Bayswater Power Station on 5 April 2021, where a leak occurred in a fly ash transfer pipeline, resulting in the release of a small amount of fly ash slurry into Bayswater Creek.

Notes

Environmental regulatory reportable incidents comprise incidents that trigger immediate mandatory notification provisions under legislation and/or environmental licences.
During FY21, AGL recorded a total of twenty-one incidents of alleged non-compliance associated with water quantity and/or quality permits, standards, and regulations, of which eleven were classified as ERR incidents.
Further details relating to the PINs, Enforceable Undertaking, as well as other Environmental Protection Authority matters, are included in the 'Environmental regulation' section of the FY21 Annual Report.

SASB IF-EU-140a.2; SASB IF-EU-550a.1