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Reflect
Catherine Wolthuizen

"The key driver of increased complaints however has been the transition of one of our water members to a new billing system"

With the Federal election now behind us, energy affordability and policy remain front and centre in national discussions, and this is strongly reflected in what we’re hearing from the community. In the first quarter of 2025, case volumes rose by 9% compared to the same period last year and are up 5% for the financial year to date. These figures highlight the continued pressures many Victorians are experiencing in relation to cost-of-living challenges.

I am particularly concerned at the higher volume of credit-related cases, especially those involving disconnection. These cases are a reflection of the ongoing affordability challenges faced by many households and the consequences that occur when consumers are not adequately supported to access assistance under the payment difficulty framework. Timely, effective engagement remains critical to helping consumers manage debt and avoid harm.

Encouragingly, energy-related complaints have declined overall, particularly in relation to electricity and gas billing. We acknowledge the efforts of several major energy retailers and distributors who have worked to improve their billing practices, which are likely contributing to this positive trend.

The key driver of increased complaints, however, has been the transition of one of our water members to a new billing system, which has resulted in sustained high volumes of water-related cases and overall increase in case volumes. Consumers have reported issues with billing delays, back bills and direct debit processes, as well as ongoing challenges with contacting customer support. We continue to engage with the provider, emphasising the need for clear communication with consumers about what is owed, when payment is due, options for payment methods and ensuring accessible support options, including payment plans and extensions.

We are also seeing emerging issues linked to the energy transition. In particular, there has been a rise in complaints from consumers who have installed solar systems but are experiencing delays with connecting to the grid for export. While we know many of these issues are due to challenges for industry with implementing backend systems to support the emergency backstop mechanism, they have exposed gaps in communication with consumers and challenges of expectation management.

Our experience continues to show that the best consumer outcomes are achieved when distributors communicate clearly about timeframes and responsibilities for backend systems, and keep consumers informed at each step. As more Victorians engage with a rapidly evolving energy market, direct and effective communication from distributors will be key.

Following the February 2024 storm event and subsequent outage review, we have observed improvements in distributor communication and engagement. We encourage the sector to build on this progress and embed these practices into ongoing operations. Doing so will lead to stronger relationships with consumers, better outcomes and reduced need for escalation to EWOV.

Finally, it was my pleasure recently to share the news that Simon Cordon has been appointed as the new chair of EWOV Limited. Simon brings considerable expertise in governance and leadership, and his appointment marks an exciting new chapter for EWOV. With the appointment of Simon, we farewell outgoing Chair Paul Sheahan AM and I would like to sincerely thank Paul for his invaluable contribution to EWOV’s evolution and success.

Read on for more detail in the latest edition of Reflect. As always, you can find more data relating to our casework in the Data Hub.

The big picture

  • We received 4,836 cases this quarter, up 9% compared to the same quarter last year (4,424) and a 10% increase compared to the previous quarter (4,411).
  • Our total cases for the financial year to date are 15,385, up 5% compared to last year (14,695).
  • Water cases (1,209) are a significant driver of our increased case volumes, having tripled compared to the same quarter last year. These cases relate primarily to a water member’s issues arising from their switch to a new billing system.
  • Electricity cases (2,286) were down 11% compared to the same quarter last year (2,563) but up 10% from the previous quarter (2,079).
  • Gas cases (1,286) were down 10% compared to the same quarter last year (1,423) and down 23% from the previous quarter (1,670).
  • High bill complaints (684) continue to be the top billing issue across all industries overall. However, billing error cases (550) are up 57% and billing delay cases are up more than four-fold compared to the same quarter last year, driven primarily by a higher volume of water cases in both categories.
  • In electricity, connection cases (274) increased by 69% compared to the same quarter last year (162) and were the top electricity issue this quarter.
  • Disconnection cases (165) have been steadily increasing, up 33% compared to the same quarter last year (124).

Cases can sometimes be amended, reopened and reallocated — for these reasons, there may be discrepancies between the previous quarter and the information presented in past editions of Reflect.

Issues watch

Cases involving issues with connections continues to be a top issue this quarter (Provision>existing connection: 416). Electricity cases (274) are the biggest driver of this sharp increase, up 69% compared to the same quarter last year (162).

Many of these cases involve consumers experiencing delays with connecting solar systems for export to the grid (see Edmund’s story). While there are multiple steps involved in installing and operating solar, the majority of cases this quarter involve delays at the point where distributors approve grid connection or where the distributor actions a request to reconfigure the meter for solar export. We understand these issues are likely driven by challenges for industry with implementation of the Victorian emergency backstop mechanism.

These cases highlight a complex market for consumers to navigate — in some cases, consumers may be advised there will be a delay by their installer, in others they might seek information directly from the distributor, or a consumer may not realise there has been a delay until they receive their bill and notice missing solar exports. Many of these cases involve consumers expressing confusion or dissatisfaction about inconsistent advice they were provided by the installer, distributor or retailer and about timeframes and next steps required.

Disconnection cases (165) are up 33% compared to the same quarter last year (124), following a steady increase in disconnection cases over the past 12 months. This follows a high volume of payment difficulty cases observed across the same period and a high volume of high bill cases the previous year, reflecting sustained challenges with energy affordability and a changing composition of credit cases towards the acute end of the consumer journey.

We observed a concerning trend where energy retailers issue disconnection notices to consumers as a tool for engagement, where there have been challenges with engaging the consumer about their arrears previously. This includes examples where consumers have set up or requested to set up regular payments via Centrepay (see Sheryl’s story). This may indicate a consumer has a low income and may be experiencing financial hardship, which should be an opportunity for the retailer to proactively engage about other assistance available to manage the consumer’s debt.

We recently undertook an investigation into one retailer’s reconnection practices, and found that multiple consumers were adversely affected by the retailer requesting an upfront payment of 50% of their debt, regardless of their circumstances or capacity to pay, to reconnect their supply. We recommended this retailer improve its approach to reconnecting customers by determining what is fair and reasonable in each case based on the consumer circumstances and whether there is other assistance that could be utilised. The retailer noted our recommendations and agreed to implement revised reconnection practices.

More broadly, we observed cases involving other retailers engaging in this practice. We encourage all retailers to ensure they have robust processes in place to ensure retail staff provide proactive assistance to consumers experiencing payment difficulty to prevent disconnections. This will help ensure their reconnection practices are fair and reasonable in the context of each individual consumer’s unique circumstances.

Consumer stories

Edmund* contacted us about an issue with his solar connection. Edmund told us he installed solar in October 2024, but the solar was not connected to the grid due to an issue with the distributor’s portal. Edmund told us this resulted in a financial loss, as he did not benefit from solar feed-in credits over the summer period. Edmund wanted the distributor to connect the solar system to the grid and consider providing a credit for lost solar export credits.

Following our referral to the distributor, the distributor told us** there were telemetry issues (or issues with transmitting data) between Edmund’s inverter and the distributor’s backend system, which were needed for solar backstop functionality. The distributor told us it was working with the solar installer and the inverter manufacturer to resolve the telemetry issues. Once this issue was resolved, the distributor advised it confirmed with Edmund that the system was approved and that he was already deriving benefits through reduced grid electricity usage from his solar system. The distributor advised that Edmund was satisfied with this response and the case was closed.

* Name changed for privacy purposes.

** Note: this case closed at Referral stage, however, we did receive a response from the distributor to help validate the facts of the complaint.

Sheryl* contacted us after receiving a gas disconnection notice. Sheryl told us she had been receiving collections letters and texts from her gas retailer despite being on a payment plan of $70 per fortnight for electricity and $40 per fortnight for gas, which she paid via Centrepay. Sheryl told us she had contacted her retailer about the collection notices on multiple occasions and received reference numbers for each contact, but she continued to receive correspondence requesting immediate payment. Following our referral to the gas retailer, she continued to receive collections notices, so she requested the case be investigated. She was seeking for the gas retailer to cease sending correspondence requesting payment, ensure the supply would not be disconnected and that the payments were set up correctly.

As part of our conciliation of the complaint, the retailer told us it explained to Sheryl that although it was receiving the payments via Centrepay, there was no payment plan in place for the overdue balance. In these circumstances, the retailer's system would continue to send collections notices to customers with overdue balances. We reviewed the contact notes and found that when she initially contacted the retailer to cease the collections notices, it arranged for a call with the hardship team who set up a six-month payment plan of $40 per fortnight for the gas account, and $70 per fortnight for the electricity account, which would cease all automated SMS notices. However, Sheryl continued to receive collections notices. Each time Sheryl contacted the retailer, the retailer advised she was receiving these as there was no formal payment plan in place. The contact notes also indicated that it requested their pricing team contact Sheryl to discuss a better offer, but this did not occur.

To resolve the complaint, the retailer confirmed payment plans were set up for the gas and electricity accounts and that this would cease collections notices. The retailer also offered a $50 customer service gesture for each of the accounts. Sheryl was satisfied with this offer and the complaint was resolved.

* Name changed for privacy purposes.

Outreach and engagement

Our Care Connect team continues to engage with community sector organisations to connect vulnerable consumers with outreach support and direct referral to our investigations teams where needed. This includes planning and coordinating outreach activities in partnership with community sector organisations, scheme participants, other Ombudsman schemes and local governments.

This quarter, the team delivered seven outreach events with community centres in Ascot Vale, Springvale and Craigieburn, with regular partners Southeast Community Links and the Asylum Seeker Resource Centre, and at the Financial Counsellors Victoria Housing Summit. This included a Bring your Bills Day in Springvale, with over 300 community members attending. Channel 9 reported on the event in its news update, highlighting the event’s reach, collaboration between agencies and outcomes achieved for community members.

Our highly successful No Wrong Door program continues to provide in valuable support to consumers experiencing a range of intersecting challenges, supporting 41 consumers this quarter.

20–21 May

  • Law Week Horsham, Horsham Rural City Council

Friday, 23 May

  • Melton South Community Centre, Melton City Council

Wednesday, 28 May

  • Sunbury Global Learning Centre, Hume City Council

Wednesday, 18 June

  • Lalor Library, City of Whittlesea

Tuesday, 1 July

  • South East Community Links, Cardinia Shire

Wednesday, 23 July

  • Sunshine Library, Brimbank City Council

Tuesday, 5 August

  • Deer Park Library, Brimbank City Council

Tuesday, 2 September

  • South East Community Links, City of Casey

Monday, 15 September

  • St Albans Library, Brimbank City Council
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Submissions

Our latest submissions:

Submissions to the AEMC Energy Consumer Reforms package

We provided submissions to the Australian Energy Market Commission, providing broad support for rule changes to improve access to concessions and the best offer, particular for consumers in payment difficulty. While these rules will not directly apply in Victoria, we are interested in consistency across jurisdictions to ensure equity for consumers and provide a smooth path to implementation for industry.

Read these submissions

Submission to the Victorian Energy Upgrades Strategic Review

We developed a submission in response to the Solar Vic Issues Paper, which considered broad opportunities to update the Victorian Energy Upgrades (VEU) program to ensure it continues to meet government objectives, including electrification and net-zero emissions targets. Our submission advocated for strengthened consumer protections through VEU, with a focus on the opportunity to establish EWOV as the relevant external dispute resolution body.

Read the submission




Glossary

Visit the Data Hub for a full glossary of terms.