Complaints to Energy and Water Ombudsman SA fall as pandemic reins in business

We’re still grumpy, but quite a lot less crabby about power and water bills. The sector ombudsman has recorded a fall in complaints as agencies moved in to shield consumers.

Rules shielding consumers during the pandemic have led to a sharp fall in complaints to the Energy and Water Ombudsman.

Problems with billing was the major cause for complaint but overall numbers fell by a fifth, according to the ombudsman’s annual report for 2019-20 published on Monday.

Better support for their customers by businesses was also a factor in the drop, ombudsman Sandy Canale said.

The 19 per cent fall to 8690 complaints overall came despite many consumers spending more time at home and using more energy during the pandemic – either because of unemployment or social distancing measures.

“In response to the pandemic, strong regulator and business action ensured additional support options for those who needed it,” Mr Canale said.

“This advanced action appears to have resulted in reduced numbers of complaints to our scheme.

“It is important that we and all agencies, state and national, continue to take a position that emphasises collaboration, connection and information sharing to help suppliers and consumers successfully navigate the challenges that lie ahead.”

SA Energy and Water Ombudsman Sandy Canale

Because of the economic shock of the pandemic, the Australian Energy Regulator warned businesses they should not disconnect customers struggling with bills who entered a hardship agreement or payment plan.

AER chair Clare Savage also told companies not to use debt collectors – with both measures in place until at least the end of October.

Mr Canale highlighted rule changes from the Australian Energy Market Commission which force retailers to provide advance notice of price changes and protect consumers from large penalties when they miss pay-on-time conditions.

Nonetheless billing made up 43 per cent of complaints, followed by financial hardship problems and then services such as connections and meter reading.

Four fifths of the complaints were about electricity and 15 per cent about gas – with water issues only behind 5 per cent.

The ombudsman scheme has operated for 20 years, providing an independent avenue to resolve disputes.

Mr Canale warned that changes in the energy market – such as customers going off-grid – needed to be considered.

“It is apparent that the new technologies enable more consumers to move away from traditional energy supply arrangements and become customers of providers with new business models,” he said.

“This could mean that some consumers no longer have access to current energy-specific legislative protections and may become more reliant on Australian consumer law to resolve disputes.”