Electricity customers who can’t pay bills on time now paying up to $586 a year more than those who do
ELECTRICITY customers who can’t afford to pay their bills on time are now paying record amounts of up to $586 a year more than those who do pay on time.
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ELECTRICITY customers who can’t afford to pay their bills on time are now paying record amounts of up to $586 a year more than those who do pay on time.
This means households rewarded for prompt payment are being subsidised by struggling families who are penalised for making late payments, the St Vincent de Paul Society charity group says.
Its annual SA Energy Prices report shows the problem is worsening and customers who failed to pay on time are now paying an average $350 extra, or 16.5 per cent of their bill, depending on which electricity company they are with. In 2012, the figure was $110 — or 5 per cent of the average bill.
Vinnies spokesman Gavin Dufty said about one in four SA households were now failing to pay by the due date.
“Play-on-time discounts combined with late payment fees, means that South Australian households can be significantly penalised for late payment,’’ he said. “Or conversely, SA households can be significantly rewarded for prompt payment.’’
While the highest late fee — a combination of a late fee and deduction of a pay-on-time discount — is $586. But some companies charge little or no late fees, such as Diamond Energy ($232 or 10 per cent), Sanctuary Energy ($100 or 4 per cent) and Momentum Energy (no late fee).
The welfare sector is opposed to such late fees because they punish average income earners and are often hidden in fine print. Mr Dufty said: “This highlight an issue that negatively impacts on households with cashflow problems. The base rates (for late payment charges) the companies are applying are past their use-by date — like food in the supermarket the industry needs to throw them out and replace with new lower base rates.
“That way, all customers are winners, because while there might be less discount for paying on time, these people will still get something.’’
The report, to be released today, confirms figures released by the Essential Services Commissioner of South Australia last week, showing customers can save $1000 a year on bills if they shop around.
With all discounts and other factors considered, the best deal found by Vinnies in July was just under $1800 per year for electricity consumption of 6000 kWh.
The worst was just under $2400 per year for the same use. The best electricity offers on annual consumption of 6000 kWh are offered by Simply Energy ($1760), Dodo ($2027), Powerdirect ($2029) and Commander ($2066).
Welfare groups and electricity experts have been urging customers to find the best deals since SA’s system was deregulated in 2013. The report also found annual electricity bills were between $280 and $320, or 13 per cent, higher than in July 2015. Gas prices have fallen 10 per cent, or $115.
The report also exonerates SA Power Networks of any blame for the current high prices — because its prices, the so-called “network charges”, have been kept flat and are a decreasing part of SA electricity bills.