Credit rating affected by non-payment

G/2007/1329

Mr G was upset that his gas retailer had listed him as a credit default, because of an unpaid bulk hot water account of $2,000.

In reviewing Mr G’s complaint, we found that the gas retailer responsible for the apartment where he was living had been sending ‘to the occupier’ letters, so it could work out who to bill for the gas usage. Because he hadn’t responded to the letters, Mr G’s hot water had been disconnected.

When he called the gas retailer to seek reconnection, he provided his contact details and agreed to set up an account. Mr G didn’t pay the bills though and, shortly afterwards, he moved out of the apartment without providing a forwarding address.

Our investigation included contacting a major credit company to understand the rules around default listing a customer and seeking advice from other energy retailers about good industry practice in these cases. We ascertained that, in listing Mr G as a credit default, the gas retailer followed the correct policies, procedures, laws and codes and communicated appropriately with him. On this basis, it was determined that the default listing should remain. When we informed Mr G of this, he paid the outstanding amount to the retailer. This meant his default listing would be marked as paid — reducing its future impact on him.

People moving into new premises have a responsibility to contact an energy retailer to set up an account and then to pay for the energy they use. Consumers in individual apartments can’t choose their bulk hot water supplier — this is organised by the body corporate or building management. The selected retailer often then bills each apartment individually. It sends ‘to the occupier’ letters to make contact with consumers who are using energy without setting up an account. These letters from energy companies need to be responded to. Where a customer knows they’re going to have difficulty paying their bill, they should contact the retailer to make payment arrangements.


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