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Ombudsman's note
 by Clare Petre, Energy & Water Ombudsman NSW
Overview
We continue to see an increase in complaints, with EWON closing 4,423 matters in July to December 2006,
an increase of approximately 14% from the previous six months. The final months of 2006 were also significant in EWON’s history as we received our 50,000th complaint.
Larry’s story: not quite the deal he signed up for
Larry told EWON he had been assured by an energy marketer that he would only pay $80 per quarter and he could pay his bills at the post office.
When Larry received his first bill it was for $160 and when he took it to the post office they said it couldn’t be paid using their service. He contacted the retailer who said his quarterly payments would have to be $160 rather than $80 and he could pay the account at a supermarket. Larry wasn’t happy with this response so he called EWON.
While we investigated his complaint, Larry received a bill for $364 and he was even more confused. We explained that the way the retailer’s billing system worked meant there would be a reconcilation at the end of the year based on actual usage. The quarterly payments were designed to offset the annual bill.
Larry felt that the deal wasn’t right for him and that the marketer had misled him. He agreed to pay $40 per fortnight to pay off the account but wanted to be transferred back to his original supplier. The retailer agreed to cancel the contract without penalty. |
Energy competition complaints
Complaints about energy marketers have dropped slightly overall and we are now seeing an increase in competition related issues about account transfers and billing.
Some customers are confused when their negotiated contract is automatically rolled over or they discover their contract doesn’t allow them flexible bill payment options (see case study opposite).
Signing a contract to save money
Some customers sign energy contracts because they believe or are told by the marketer that they will save money. They are upset when they receive higher bills.
You may save money if the new retailer charges a lower tariff. However, you’ll need to check your current tariff (this is on your bill) to work out if a saving is likely.
Some people are not aware that the tariffs they sign up for can change. Network charges (which are paid by the retailer on your behalf) can change during the term of a contract and retailers usually pass on the increases to customers. Check the contract to see if the tariffs are subject
to change.
High bill complaints
Billing complaints have dominated as an issue for customers since EWON began. In the July to December period, 35% of the billing issues raised were about customers receiving high bills.
Our investigations have found that in some cases errors have occurred in the billing process. In other cases, customers have used more energy than previous periods and this, combined with price increases which usually come into effect in July each year, can cause unexpected high bills.
There are many simple and low cost ways we can lower our energy and water bills, and reduce greenhouse gases. Useful energy and water saving information can be found at www.energysmart.com.au or phone 1300 138 638.
Residential parks update
In recent months EWON has met with the Office of Fair Trading to discuss issues affecting people in residential parks. We aim to distribute information about rights and responsibilities to assist both residents and park owners, as well as what EWON can do to help resolve disputes.
Marketing forum for members
In November 2006 EWON hosted a forum called “Getting it right: energy marketing to consumers”. We were pleased that over 45 representatives from large and small energy retailers attended. Speakers at the forum included representatives of the Independent Pricing and Regulatory Tribunal, Office of Fair Trading, Council on the Ageing NSW, Affordable Energy & Water Efficiency Project and the Energy Retailers Association of Australia.
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