Energy contracts and marketing complaints
Complaints to EWON about energy marketing and contracts remain stable and a relatively small proportion in comparison to other complaint areas. However the continued steady flow of these complaints means it remains an important issue for EWON to raise, particularly when there is confusion over energy offers or contracts. Over the past year, the following issues featured in customer complaints.
Rebate offers
In the latter part of 2009 EWON received a number of complaints from customers who had received written information about ‘claiming a rebate' on their electricity account. Some of the customers were not clear that they would be switching retailers if they accepted the offer and complained to EWON about misleading marketing. EWON reported this to the regulator, which resulted in a revision of the marketing material to make the conditions of the offer clearer.
Fees and charges for customers on a negotiated contract
We continue to receive enquiries about the fees and charges a retailer can pass on to a customer. It is important to note that if you are on a standard customer contract, the fees a retailer can charge are regulated. For example, there is a regulated maximum late payment fee that customers on a standard contract can be charged. However, customers who sign a negotiated contract are subject to the terms and conditions of the energy offer they agree to, and the fees and charges disclosed in their contract with the retailer.
Before agreeing to an energy offer, check with your retailer about any fees and charges which may apply during the contract period, or when you close your account or move properties (eg. ask the retailer what is their late payment fee? do they charge a disconnection fee?).
Energy switching websites
There are a number of energy comparison websites which offer services to customers wanting to switch retailers. Many of these sites do not charge the customer a fee, however they typically receive a broker's commission from participating energy retailers or their ‘preferred suppliers'.
If you are considering using a broker, ensure you have read and understood the terms and conditions of using their service. Due to the constantly changing nature of energy products, they may not be able to guarantee that the deal they offer you is the ‘cheapest' or the ‘best' product the retailer currently offers.
We urge customers to be cautious about verbally accepting or signing for an energy offer unless you understand the full terms and conditions of the offer.
If you have any questions about a particular product, contact the retailer directly to check the offer or contact EWON.
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