Flatting students caught out by power bill problems

Sunday, 11 February 2018

In one case, a group of flatmates asked to be on the bill but only one name was listed when it went to debt collectors.

Students moving into new flats are being told to take care to avoid being stuck with a bill that isn't theirs.

Utilities Disputes Commissioner Nanette Moreau said it was common for students to be caught out by problems with power bills.

One group of tenants said it was a big shock when they discovered their 'free' power was going to cost them, after all.

She said her office had dealt with 'countless' cases over the years where people were sent huge bills because the previous tenants of their flats did not properly close the account.

'One group of new tenants, who hadn't set up an account when they moved in, received a disconnection notice and a very high bill three months later,' Moreau said.

* Simple things can cost you hundreds

* Consumers given right to request consumption data from power retailers**

'They contacted us and we worked with the tenants and the company – in this particular case the bill was reduced, and an account was set up.'

She said the electricity was on when they moved in so they didn't set up their own account. It was not until their 'free' power came to an end that they realised something was wrong.

'We also hear from people who continue to receive power bills long after they've left the flat. Getting it right when you open and close your account will save a lot of headaches.'

In an other case dealt with by Utilities Disputes, a man complained when his power company sent the final bill for his flat's account to debt collectors in his name only.

He argued his flatmates were also account-holders, and they had all arranged for a friend to pay the bill while they were overseas.

The bill and following communication about it were not sent to his new address, which he said meant he had no way of knowing about the problem.

The commissioner upheld the complaint and the retailer paid a 'customer service payment' of $500.

The retailer was told it should have informed the customer his was the only name on the account, even though the flatmates had asked to all be named. But the commissioner noted that the contract meant the retailer was entitled to transfer the unpaid bill to debt collection in the one name only.

'The person named as the account holder is responsible for all future bills, so communication is really important,' Moreau said. 'It's a good idea for flatmates to agree in writing – a flat email, for example - how power bills will be paid. And the account-holder details must be kept up to date, especially when people move out.'

Utilities Disputes Commission tips to get it right:

Tips for setting up your electricity or gas account:

1. Read the meter – even better, take a photo

2. Contact an electricity or gas provider to set up your account - See www.powerswitch.org.nz

3. Agree how power bills will be paid between tenants

4. Read your first bill carefully and contact your company if you have questions

5. Close the account when you move out, take a final meter reading.