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Media centre
Media release
Misleading marketing unacceptable, says Ombudsman
Tuesday 14 November 2006
The Energy & Water Ombudsman NSW (EWON) today reported 7,624 complaints for the
2005-2006 financial year, a decrease of 8% from the previous year.
Ombudsman Clare Petre said, "The overall reduction is welcome, however there was a
254% increase in complaints about energy marketing, which is a cause for concern.
"In particular, consumers complained about pressure tactics by marketers. We also had carers
and family members complain that their elderly or frail parents were signed-up when they didn't understand what they were signing," said Ms Petre.
"Misleading consumers into signing an energy contract is unacceptable and does not foster
a positive, competitive energy market," she said.
The annual report notes that there was a decrease in complaints about credit and disconnection issues, which the Ombudsman attributes to companies providing assistance programs for customers in financial difficulty.
Ms Petre said, "While we're pleased to see less customers coming to us with credit issues,
we are very concerned about what's ahead.
"The customer assistance programs provided by the major retailers are already highly subscribed and we are regularly contacted by people who have been unable to negotiate a payment plan
with their supplier.
"Predicted price increases in a range of areas including utilities will especially affect customers with limited financial flexibility. We could see more customers unable to pay their energy or water accounts, or keep up with their payment plans.
"We urge customers to talk to their supplier rather than miss payments and face disconnection.
If their supplier asks them to make a payment arrangement that is unrealistic for them, they should contact EWON."
Media enquiries:
Maria Leonardis
Phone (02) 8218 5206
Mobile 0401 216 727
Email news@ewon.com.au
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