From January to March 2021, we closed nine energy systemic issues identified through our case handling.
Payment reminder notices non-compliant
Reminder notices sent by an energy retailer didn’t provide details of how to contact the retailer about a complaint and dispute, in breach of clause 109(5)(d) of the Energy Retail Code. The retailer amended its disconnection warning letters, making them compliant, but didn’t agree that the original notices were non-compliant. We sought the Essential Services Commission’s (ESC) advice and it agreed that the retailer had breached the clause. Of the 248 customers disconnected after receiving the notices, the retailer provided a note on the customers’ accounts about contacting the retailer about a Wrongful Disconnection Payment (WDP). SI/2019/27
Planned outage notice left to owners’ corporation
A distributor did not notify apartment residents in a mixed-use building of a planned outage, instead relying on the owners’ corporation to notify the residents. The corporation placed a notice in the lift and distributed leaflets but these did not include a 24-hour contact number for the distributor. As a result of our investigation, the distributor reviewed the case and amended its process to ensure that the Energy Distribution Code (EDC) would be followed in the future, regardless of the entities involved. SI/2020/42
Retailer system leads to refund delays
Insufficient funds in a retailer’s refund account led to refund rejections in November and December, affecting 170 customers. The retailer payment provider did not subsequently update the refund status. The IT team has since corrected the issue with the provider and improved the refund process. All affected customers have since received their refunds, except for seven customers who provided incorrect banking information and from whom the retailer is currently awaiting updated information. SI/2021/9
Customers not informed about a network tariff change
A retailer failed to inform customers that their network tariff had changed to a cost-reflective tariff from 1 January 2017 and was also reversing and reissuing bills without informing customers of the reason. Some customers received a new contract pack including demand pricing because of a renewal, product change or meter change. For these customers, the retailer agreed to credit any demand charges previously billed up to the date they received the demand pricing information. For customers who were never notified, the retailer agreed to re-bill the customers without any demand charges and revert these customers to their original non-demand tariff. SI/2020/2
Water in distributor’s gas lines
We identified an increase in complaints about water in a distributor’s gas lines. The ongoing issue had caused outages for several customers. In some cases, the distributor has the area scheduled for mains replacement. In other areas where gas can’t be upgraded or where mains renewal is not in the immediate future, crews try to resolve issues over a period that can take several weeks, causing frustrations for customers. The distributor agreed to liaise directly with customers to ensure there is minimal impact during these periods. In some cases, this may lead to the provisioning of electrical appliances to customers, reimbursement of out-of-pocket expenses or arrangement of trades to assess customer assets. SI/2020/31
No hour of power
A retailer failed to provide a free hour of electricity in line with its contract. The retailer also didn’t give notice that smart meters do not change to reflect daylight savings time and so customers could not consider the time of usage. After our investigation, the retailer re-billed the affected customers and explained the issue to them. It also ceased the offer so that it would not affect future customers. SI/2020/47
Inappropriate material
A customer complaint led to an investigation into marketing material that may cause offence to people affected by mental health issues. The retailer withdrew the material after receiving the complaint. SI/2021/26
Ombudsman information on website
We reviewed scheme participants’ websites and identified a retailer that did not have the necessary ombudsman information contrary to section 56(1)(b) of the Energy Retail Code. Two employees at the retailer were also unable to locate EWOV’s information on the website. Following this, the retailer identified a PDF document on the website that listed EWOV’s information, however, this PDF was not easy to locate and the website did not include a search function. The retailer agreed to move the information to a more easily accessible location on its homepage. SI/2021/22
We identified another retailer that didn’t have the necessary ombudsman information on its website. The retailer confirmed in a web chat that EWOV was not included as the retailer was new to the Victorian market. The retailer took action to include EWOV on its website and the information is now more easily accessible. SI/2021/23