AGL Energy (ASX:AGL) Four AGL subsidiaries were found to have violated the National Energy Retail Code and ordered by a federal court to pay $25 million in fines. The breach relates to Centrepay’s failure to notify and refund approximately 500 customers within the required time frame.

The case was brought by the Australian Energy Regulator (AER) and the Federal Court’s judgment was announced on 19 December 2024.

In response, AGL expressed disappointment over the issue and apologized to affected customers. The company said the issue was identified in mid-2020 and that it has since implemented “significant process enhancements” to improve the way Centrepay processes payments.

The $25 million penalty is significantly larger than AGL had anticipated. The company said it would “scrutinize the court’s ruling and consider whether to appeal.”

Despite the size of the penalty, AGL said it would not affect its financial outlook for FY2025. The company reaffirmed its guidance for underlying EBITDA to be in the range of $1.87 billion to $2.17 billion, while underlying net income would be in the range of $530 million to $730 million. We expect it to be in the range.

Yesterday, AGL stock closed 0.74% lower at $10.74.