Massive leap in power complaints to SA Energy Ombudsman

EXCLUSIVE: Overcharging and aggressive sales tactics by energy retailers have lead to a record number of complaints to the industry watchdog.

OVERCHARGING and aggressive sales tactics by energy retailers have lead to a record number of complaints to the industry watchdog.

The Energy Ombudsman investigated more than 14,400 complains - including overcharging and dodgy door-to-door salespeople - in the 12 months to July.

This is a 42 per cent increase on the previous financial year and the highest recorded since the SA ombudsman's office was established 12 years ago.

Energy Ombudsman Sandy Canale has criticised retailers for failing to resolve the complaints, saying they "could and should" deal with customer "issues appropriately and in a reasonable time frame".

"Billing matters accounted for 45.3 per cent - or 6565 - of all cases received and continued to represent the largest category of cases," Mr Canale said.

"The main contributor to this category was high-bill complaints, with consumers expressing concern at the receipt of a higher-than-expected account that they believed was inaccurate or had not been adequately explained."

Examples included:

DOOR-TO-DOOR salesperson caught forging a householder's signature on a new energy contract, resulting in a fine to the retailer and sacking of the salesperson.

A PENSIONER being sent a $200 "back bill" for 12 months of energy use after her retailer said it had undercharged the tariff. The ombudsman negotiated for the bill to be dropped.

THE ombudsman arranged for a free reading of a meter after a householder complained the retailer's estimated use was too high, and received a refund.

Peak welfare body the SA Council of Social Service said householders were paying more attention to bills as the cost of power rose.

SACOSS director Ross Womersley also said that unscrupulous door-to-door salespeople working only on a commission basis would have driven the 33 per cent jump in complaints about retailers' marketing tactics to 2507 cases last financial year.

He said welfare agency financial counsellors knew of a man with a mental illness who had been signed to three different companies in a fortnight and several people who had been signed on to new contracts without being told that their existing power provider would charge an exit fee.

"In South Australia, the most popular way to get people to switch retailers is through door-to-door sales and we clearly believe the people most likely to be exploited are those with a low level of literacy or command of the English language and those with mental illness," Mr Womersley said.

The Australian Competition and Consumer Commission is pursing claims in the Federal Court against SA's largest retailer, AGL SA, and Alinta, and their associated marketing companies, alleging their salespeople refused to leave people's homes when asked.

Kensington resident Genni Palmato, 38, knows about the pitfalls of dealing with door-to-door salespeople.

She and her partner Paul McLean were convinced by savvy salespeople to sign up with a new retailer and enjoy significant promised savings on their power bill.

"But when the first bill came the electricity tariffs charged were much higher than those advertised in the brochure," she said. "I felt furious, fooled and misled."