Renters and energy

Tenants experience more energy challenges than owner-occupiers

Many of the energy consumers who complain to EWON live in rental properties. Renters often find it harder to reduce their energy costs: from our complaints we have identified two broad issues. 

Fixtures and property structure 

Renters have less control over the fixtures or structure of their home. This can contribute to higher bills and make it more difficult to resolve energy problems.

Estimated bills caused by inaccessible electricity meters 

Estimated electricity bills can impact energy affordability. Energy retailers are allowed to issue estimated bills when an actual meter reading cannot be taken from the customer’s electricity meter, or the retailer is otherwise having difficulty obtaining the meter data. Estimated electricity bills can be caused by:

• locked or closed gates at the property 

• the meter being in an inaccessible place, like inside the property or in a shop which is not open when the meter reader visits 

• all the meters for an apartment building may be located inside a locked room 

• faulty electricity meters or meter providers having technical problems obtaining the data and transferring it to the energy retailer.

Tenants can have more difficulties resolving complaints about estimated bills because they often have less control over some aspects of their home, and need to negotiate with more parties (e.g. landlords and/or real estate agents) to resolve the problem.

Multiple dwellings at the same rental property leading to account problems  

Some renters live in a home that is one of multiple dwellings at a single property, such as a granny flat. This can cause confusion over who is responsible for the energy charges at a property, or leave some renters feeling that they are paying for the energy usage of multiple households. The complaints we receive about these types of rental properties include:

• Consumers discovering there is an energy account and/or debt in their name for a second dwelling at a property. Tenants approach EWON for help disputing liability for these energy charges.

• Tenants disputing a high electricity bill where multiple dwellings share the same meter installation. Tenants will often complain that they are paying for the energy usage of another household or business.

• Complaints that involve unusual electricity set ups, such as additional off-market meters that are installed and maintained by the landlord.

Large appliances causing high electricity bills  

Appliances that consume large amounts of energy, such as hot water systems, pool pumps and underfloor heating, can be the difference between affordable and unaffordable energy bills. Faulty or inefficient appliances, like a leaking hot water system, can result in high electricity bills. Tenants can be limited in how they can respond to this problem: for example, a tenant may be unaware that there are metering options designed to lower the cost of these appliances, such as connecting the appliance to a controlled load meter. The landlord ultimately decides which large appliances are installed and how they are metered.  

Opening and managing energy accounts

Renters can face unique problems opening and managing energy accounts. 

Moving homes, switching and managing energy accounts  

Renters move more frequently than homeowners.

This means renters are more exposed to the problems that occur when opening and closing energy accounts, or when transferring energy accounts to a new property. Renters frequently complain about issues such as:

• their retailer failing to close their old account when they move house 
• errors on their energy account relating to the supply address (such as address mismatches)
• having their energy supply disconnected at the time they move into a new property
• problems opening accounts and third party connection services.

We also receive similar complaints from homeowners, but these issues are more common for renters and may involve additional challenges to get to resolution – such as dealing with additional parties like real estate agents and landlords.

Disputes over the liability for energy debt linked to a rental property 

Renters will often complain to EWON about an energy debt linked to a rental property. This may happen when a renter moves into a new home and the previous tenant left the property without closing the account and left the energy charges unpaid. Energy debts can also be linked to a previous rental property where the account was not closed after the customer moved or includes charges for a period that the renter was not living at the property. Some customers only become aware of these debts when they find that a credit default listing has been placed on their personal credit file.

Renters unable to open an energy account in their own name  

Some renters are prevented from opening an energy account in their own name. In these situations, the energy account often remains in the landlord’s name. Renters unable to open an account in their own name can result in a number of poor energy affordability outcomes, for example:

• A renter with payment difficulties will not be able to contact the energy provider and negotiate a payment plan, or switch to a more affordable energy offer. 
• Renters without their own account can’t dispute a high electricity bill or ask their retailer to review an estimated meter reading. 
• The renter will be unable to apply for energy rebates or energy accounts payment assistance (EAPA) available in NSW. 
• The renter may not benefit directly from consumer energy resources at the rental property. 

Case study

 Energy charges accrued at rental property before customer moved in

A customer moved into a rental property and contacted an energy retailer to open an account. The energy retailer offered her a retail energy plan but stated that the contract's start date must be 16 days before her move-in date. The retailer explained that the meter data indicated someone had started using energy at the property earlier, making that the contract's start date. The retailer suggested that the customer provide a copy of her lease for review of the start date. They also informed her that if she did not agree to the contract, they would begin the process to disconnect the property. The customer then complained to EWON, arguing that it was unreasonable to require her to provide a copy of her lease just to open an account starting from her move-in date.

EWON referred the complaint the retailer’s specialist team to try to resolve directly. EWON invited her to return to EWON for further discussion, if required.