Electricity price complaints surging: NSW Energy ombudsman

Consumers in NSW are running into difficulties with new installs of smart meters, alongside higher electricity bills, it’s been revealed.

Complaints about electricity price increases have skyrocketed by 66 per cent, the NSW Energy Ombudsman has revealed – and more people are being hit with unexpected bill shock after installing new smart meters.

NSW homes are being given “poor information” about what to expect if they upgrade to smart meters – which record their usage digitally – the state’s energy watchdog has warned.

The latest snapshot of energy complaints by the Energy and Water Ombudsman NSW (EWON) shows it received 3554 electricity complaints in the past four months to June 2023 – a jump of 36 per cent on the same time last year.

Among the top complaints were high bills being disputed, poor customer service, disputes about meter readings, failing to respond to customer complaints and payment difficulties.

Deputy ombudsman Helen Ford reported that price increase complaints didn’t even feature in their Top 10 Core Issues last quarter but “emerged as the fourth highest core issue this quarter with a 65 per cent increase from the quarter before, and 113 per cent higher than April to June 2022, a considerable increase”.

Complaints about electricity price increases have skyrocketed by 66 per cent in NSW.

“We expect price increases, affordability and high bills to continue driving complaints over the coming months, as many customers receive their first bills at increased prices, coinciding with winter energy use,” she said.

Her office has recorded an increase in complaints from customers being hit with changes to their billing after the new smart meters are installed.

These include people not being told their tariff, or bill systems, would change or given information about “Time of Use” tariffs or “Demand Tariffs”.

And other families weren’t told about fees associated with tariff change requests. In one example cited, a customer moved to a smart meter after being told there would be “no costs associated with the meter exchange and there wouldn’t be any changes to his tariff”.

St Vincent de Paul's manager of policy and research Gavin Dufty said the retailers are doing a very poor job of informing customers before installing the new smart meters. Picture: Supplied.

After getting a notice about a bump in prices, he shopped around and discovered his tariff type had been changed on the national meter database from a single flat rate tariff to a single rate demand tariff.

“He considered that this was without his knowledge or informed consent,” EWON reported.

“He contacted his electricity retailer and requested that the tariff be changed back to a single rate, however it declined and advised that he could not go back now that the meter had been changed.”

After complaining he was offered a $300 credit for poor customer service.

St Vincent de Paul Society policy and research manager Gavin Dufty said the issue was the retailers are doing a very poor job of informing customers before installing the new smart meters.

“Pricing outcomes can be different some people depending upon how they use electricity.

“The retailers should be giving people information beforehand.

“There should be explicit consent, informed consent to households when the retailers put them on a new tariff.“

Smart meters are planned to be rolled out for all households by 2030, he said.