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 Ombudsman's report
by Clare Petre, Energy & Water Ombudsman NSW
Rise in marketing complaints
Following an increase in complaints from older consumers, EWON began an information campaign to inform seniors about their rights when dealing with energy marketers and considering an energy contract.
Since January 2006 there has been an alarming increase in cases where older consumers or advocates for the frail and elderly have complained about being taken advantage of by energy marketers.
Obligations of energy marketers
A door-to-door marketer must leave immediately if you ask them or they are breaching the Marketing Code.
Before you sign or agree to a contract, a marketer must:
• provide you with the contract’s Terms and Conditions in writing
• tell you about the cooling-off period
• tell you about any termination fees |
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Complaints about marketers
From 1 January to 30 June 2006, EWON received 736 complaints about marketers (18% of all complaints). Of these:
• 538 customers said they were misled
• 359 customers said they did not consent to a contract
• 116 customers said they were pressured or coerced into signing |
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In some extreme cases, consumers have been deliberately misled by marketers and told their supply would be cut-off if they did not sign a contract, or that their existing supplier is going out of business or being taken over. Others were falsely told that the marketer was only checking their pension entitlement.
Some people felt pressured into signing a contract, and said ‘it was the only way to get the marketer to leave’.
While we are able to resolve these complaints with the energy companies, the fact remains that these customers have been extremely distressed by their experience with energy marketers.
For many older consumers, being door-knocked or phoned by a marketer is their introduction to the fact that they can now choose their energy retailer. Many older consumers have been with one electricity or gas company for a long time and are distressed to find that they have been transferred to another supplier without their consent.
Having raised our concerns about these issues with the retailers involved and the regulator, we hope to see a dramatic decrease in marketing complaints involving vulnerable consumers, particularly frail and elderly customers. In the meantime, we have developed a fact sheet for seniors which our staff have distributed to key groups for seniors, such as COTA (Council on the Ageing) and CPSA (Combined Pensioners & Superannuants Association of NSW).
We urge all consumers to exercise caution when dealing with telephone or door-to-door marketers. If you’re not sure about what they are offering and haven’t read (or can’t read) the fine print, don’t sign anything.
If you feel you have been pressured or misled by a marketer about an energy contract, call the retailer responsible and let them know. If you are not satisfied with their response call EWON on freecall 1800 246 545 or email omb@ewon.com.au
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