Summary of systemic issue Investigations opened and closed
October to December 2019
| |
Energy |
Water |
LPG |
|---|
| Registered |
9 |
0 |
0 |
|---|
| Closed |
9 |
0 |
0 |
|---|
Note: Systemic issue Investigations opened and closed during the above period that cannot yet be identified as being systemic haven’t been included.
Systemic issues identified through EWOV's case handling
October to December 2019
Energy
Customers transferred to another energy retailer without their consent
Through our case handling we found customers had been signed up to an energy retailer without their consent. The retailer attributed the problem to the fraudulent entry of the customer's details — without the customer's knowledge — by a sales agent for one of the retailer's third-party marketing service providers. The retailer said it had since audited all of the accounts referred by the sales agent — as a result the third-party marketer had terminated its agreement with the agent. It said 67 affected accounts had been identified and either closed or retrospectively transferred back to the customer's previous retailer. The retailer also advised it had since enhanced its verification system to detect fraudulent applications; created a new sales governance program with revised audit, remediation, reporting and monitoring requirements; and implemented a compliance framework with its third-party service providers. SI/2018/61
Electricity bills showed estimated meter readings as actual
Our case handling highlighted that an energy retailer’s bills showed the meter reading as actual when it was estimated. We understand the issue affected eight Victorian customers — all large market customers with basic meter types. The energy retailer said it had notified affected customers, asking them to ensure the meter was accessible for a reading. It said it had also changed its billing system to ensure that substituted data and estimated reads were correctly shown on bills. SI/2019/10
Notice of rate changes
Our case handling highlighted that customers of an energy retailer weren't notified about rate changes in line with their contract terms and conditions. The retailer was required to give them 30 days’ notice of a rate change, and it didn't do so when it changed rates in January 2019. We understand 44,585 customers were affected. The retailer said it had provided some 3,600 customers — who contacted it within 30 days of the notification of the rate change — with a $50 account credit. It undertook to give all remaining customers at least 30 days' notice. SI/2019/12
Errors in processing direct debits
Our case handling highlighted errors in how an energy retailer was processing direct debits from bank accounts. In one case, the whole bill was deducted rather than the agreed instalment. In another case, two direct debits were deducted where a payment had been missed. The retailer attributed the first to employee error — advising it had since retrained the consultants involved and updated its process map. It said it had addressed the double-debiting with a system upgrade — to ensure that, in future, customers who miss a payment are contacted with options for making the missed payment up. SI/2018/25
Overpayment of energy concession entitlements
An energy retailer advised that, following a system change in early 2019, some customers had been overpaid their concession entitlements. We understand around 9,000 customers were affected between March 2019 and July 2019. The retailer said 5,601 customers were notified of the error, provided with an apology and sent revised bills, with information on how they could request extra time to pay. Some customers, including hardship customers, were excluded from remediation activities and not issued with new bills. The retailer also advised that a system fix had since addressed the issue. SI/2019/36
Refunds in error
Our case handling revealed that an energy retailer had provided refunds in error during reversal and re-billing of accounts. The energy retailer reviewed each account identified by EWOV. It attributed the error to its employees not following its practice guidelines for processing refunds. It said feedback and coaching would be provided, and that it was also reviewing its practice guidelines training and materials. SI/2019/37
Backbilling of summer gas rates
Our case handling highlighted that customers of a gas retailer were incorrectly billed on summer rates during winter, and then backbilled. We understand just under 55,000 customers were affected. The retailer said the problem arose when the winter gas rates in its billing system didn't roll over from the previous year as they should have. It said it had set up a customer hotline, sent written apologies to affected customers, and provided account credits. It said it had also amended its price change process to ensure rates changes occur at the appropriate time — even where rates are unchanged from the previous year. SI/2019/39
Billing delays related to Best Offer
An energy retailer notified us of billing delays for around 270 customers with whom it had multiple previous payment agreements. The retailer said it had put a hold on the accounts of these customers, because it was unable to display the Best Offer message on their bills. It said it had informed the customers of the billing delay — as needed, they would be offered an extended period to pay or a payment plan. The retailer also advised that a system fix had since addressed the issue, and the bills had been sent. SI/2019/41
Accounts set up even though the prospective customer failed a credit check
Our case handling highlighted an issue around the setting up of energy accounts. When a prospective customer failed a credit check, an existing customer (a relative) was contacted by the retailer's agent and asked to set the electricity and gas accounts up for them — on the understanding that the accounts would revert to the new customer once they were active. The energy retailer said its agent had acted outside standard documented process. It said feedback had been provided to the agent and the team manager, and it would be reminding its sales teams about standard documented process requirements. SI/2019/44
