EWON Annual Report 2006 | 2007

Wednesday 14 November 2007

Ombudsman receives its highest number of energy and water complaints

The Energy & Water Ombudsman NSW (EWON) handled 8641 complaints last year, a 13% increase from the previous year and the highest number of complaints since it began nine years ago.

Released today, EWON’s Annual Report 2006–2007 shows that for the first time, customers complained more about retail competition issues than billing or credit. Retail competition in energy represented 29% of all issues raised by customers.

Clare Petre, Energy & Water Ombudsman NSW cautions that complaints to EWON are a significant barometer for energy and water companies about customer concerns.

EWON received 2786 complaints from customers about energy retail competition issues including misleading marketing, delayed billing or transfer, and limited payment options under new contracts. This represents a 50% increase in retail competition complaints from the previous year.

Of these complaints, 871 customers said they had not agreed to a contract but found their accounts cancelled or transferred without their consent.

“This year we have received a significant number of complaints about retail competition in energy. Some customers complained they were confused by their new retailer’s billing system, while others were frustrated when they had to wait months for their account to be transferred,” says Ms Petre.

“While we have seen a reduction in complaints involving misleading marketing, we are still concerned about inappropriate sales tactics being used to sign-up customers. We continue to receive complaints from advocates and family members about vulnerable customers signing contracts when it is clear that informed consent is an issue.

“Consumers in New South Wales are faced with a greater choice of retailers and energy products, especially as electricity and gas are often bundled or tied-in with other services.”

Ms Petre warns consumers, “It is important to carefully consider any energy offer before you sign. Make sure it is the right arrangement for you, as in the end, your supply won’t change, you’ll still receive the same electricity and gas as before.”