Customer complains about $7000 power bill

Thursday, 14 June 2018

A power company estimated a household's power use for 15 months, then sent a back bill for $7000 when it finally read the meter.

The retailer offered to reduce the bill by half when the customer complained.

He rejected that, saying he had not been told the company had not been able to access his power meter. He was also upset the company had threatened to disconnect his power, before it dealt with his complaint about the bill.

The case went to Utilities Disputes Commissioner Nanette Moreau's office, which ruled the 50 per cent discount, with time to pay, was fair.

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The retailer was within its rights because its terms allowed it to ask for back payment when earlier bills stated they were estimates. The back bill looked to be correct.

It was one of a number of complaints being escalated against power companies, to the commissioner's office.

Customers who have a complaint about their utilities providers and cannot resolve it with the provider itself can take their complaint to the Utilities Disputes scheme.

Last year, 55 per cent of complaints were about bills. This year, that had risen to three-quarters.

In another case heard by the scheme, a woman complained about her bill after she was not charged for power over three months of winter.

She said she had not been given a chance to adjust her usage in line with the bills.

Once she saw how high the bill was, she changed the way she used electricity and her bills dropped.

She wanted the company to pay the difference between the big bill and her normal usage. The commissioner agreed and said the company should pay her $185.61.

Moreau said power bills were the bulk of her work.

'Sudden high bills, back bills and incorrect rates are among the common billing issues we consider,' Moreau said.

'We hear from people who tell us about receiving higher charges without notice, or perhaps a group of tenants who say they have received a big bill from out of nowhere – these are all familiar stories.'

She said more attention on power prices in the media could prompt people to look at what they were paying, and complain.

 'While we can't make decisions about the price of electricity or gas, we can investigate whether your bill is accurate, and whether your pricing plan is the most appropriate for you and your lifestyle. We can also look at customer service, and consider whether the communication and information provided was reasonable.'

She said people could avoid issues by making sure they understood the terms of their contracts, what rate they should pay and any conditions such as fixed terms.

People should also monitor how often their meters were read rather than bills estimated, she said.

Other common energy complaints included supply - including power surges or outages, disconnections, and issues with switching energy companies.

'Disconnection and disconnection notices cause a lot of stress. We talk through the situation with both parties, consider whether enough notice has been given, and check out the options.'