Consumer issues 2010-2011
EWON is committed to working with utilities, regulators, government and community agencies to identify and address systemic issues that impact (or have the potential to impact) negatively on customers. By raising systemic issues with stakeholders, we encourage the adoption of best industry practice and ultimately hope to reduce and prevent complaints to EWON.
Systemic issues
Billing system problems
Billing complaints make up the majority of customer contacts with EWON, particularly where the customer has received an unexpectedly high bill or where there have been delays in receiving regular bills. While often the issue is confined to that particular customer’s individual situation, on a number of occasions a problem has been identified with the provider’s billing system.
Examples of situations where complaints have arisen:
- a failure to apply the agreed discount under a market contract to all the time bands for an interval meter
- an error with the printing of invoices resulting in duplicate invoices being issued to customers
- some gas customers were charged multiple times for some meter readings
- some business customers were charged an incorrect tariff for their weekend usage
- a new invoice design only allowed for one meter on the bill, so information on additional meters was not provided to customers
EWON liaised with the providers while the errors were corrected to ensure that all affected customers had their bills amended and any overcharging was refunded.
Solar issues
This year there was a surge in complaints around solar issues, largely related to changes in policy regarding the NSW Solar Bonus Scheme.
Many customers contacted EWON with complaints about their solar installers, primarily about delays and cost. As EWON does not have jurisdiction over installers and electrical contractors, these complaints were referred to NSW Fair Trading.
Marketing issues
Marketing activity escalated following the sale of the state-owned electricity retailers in March 2011. With some retailers now actively seeking new customers, we have seen a corresponding increase in door-to-door marketing complaints. Customers typically complain of misleading or pressure marketing, particularly to vulnerable customers, and particularly by door-to-door marketers.
Some marketers used the sale of the state-owned retailers as part of a misleading sales approach. For example, they incorrectly advised customers “your company has been sold and you need to sign up to keep your electricity supply”.
We received a number of complaints from customers whose contract had been cancelled when a non-account holder signed a contract for the property and the account was transferred to their name. This often led to the customer not being able to discuss the account with the new retailer and receiving an early termination fee when their contract was cancelled.
With telemarketing complaints, customers typically stated they did not agree to a contract but only asked for information to be sent to them for review; instead their account was transferred to the company represented by the telemarketer.
EWON has ongoing concerns about misleading marketing practices and we supported the initiatives introduced with the new Australian Consumer Law and revised Marketing Code of Conduct, in particular, reduced hours for door-to-door marketing. We also welcomed the Australian Competition and Consumer Commission’s approval of an industry-based code of practice around marketing. EWON hopes the new code will become the basis for quick and effective action against individual marketers who mislead or pressure customers.
Affordability issues
Energy affordability is a key driver of increasing complaints to EWON and we expect this trend to continue as future price rises are applied. We also continue to receive complaints from customers with large arrears and who are facing disconnection or have been disconnected.
With many customers in financial hardship, early intervention by the retailer could prevent disconnection and accrual of arrears. It is important for energy retailers’ contact centre staff to be able to identify and appropriately refer customers in financial difficulty to their hardship program or other assistance.
Retailers need to make it as easy as possible for customers to self-identify as being in financial hardship and requiring assistance. Moreover, energy retailers need to offer realistic and affordable payment options.
EWON has contributed to a number of forums about pricing and affordability, particularly in relation to government programs providing rebates and assistance to customers experiencing hardship. EWON is concerned that any assistance is delivered to customers as efficiently as possible. We are liaising with those retailers who do not yet allow for Energy Accounts Payment Assistance (EAPA) vouchers to be paid by customers through Australia Post. Implementation of this facility would avoid problems associated with mailing EAPA vouchers, including the retailer not receiving or losing the vouchers, delays in crediting accounts, or credits not being applied to accounts.
EWON believes that there is a need to research the efficiency and effectiveness of the community service obligations of different jurisdictions, with a view to identifying best practice and potentially harmonising rebates and emergency assistance across the national energy market.
Share this page
