Major investigation into Metropolitan Plumbing after deluge of overcharging complaints

One of the state’s biggest plumbing and air conditioner companies is embroiled in multiple investigations over widespread customer overcharging accusations and claims of questionable practices.

The Metropolitan Plumbing Glen Osmond offices. Picture: Tim Joy

One of the state’s biggest plumbing and air conditioner companies is embroiled in multiple investigations over widespread customer overcharging accusations and claims of questionable practices.

In a series of rare alerts, “deeply concerned” state and federal consumer watchdogs issued public warnings against Metropolitan Plumbing and dozens of national subsidiary brands.

Authorities, who are investigating whether there have been any consumer law breaches, have received more than 100 SA complaints accusing the business – known for its distinctive electric blue insignia – of ripping off customers.

Disgruntled clients claimed bill shock after agreeing to pay high invoices amid allegations – aired in parliament – that pensioners aged in their 80s have fallen victim to company practices that have left SA’s Consumer and Business Affairs Minister “deeply concerned”.

In one case, a customer was charged $2249 to “rejuvenate” his airconditioner but when that did not fix the problem, he was quoted $20,000 to replace the whole system. An electrician later fixed the problem for just $220.

David Ellingsen with his wife Natalia. He is the owner and founder of Metropolitan Plumbing, Electrical and Air Conditioning.

Founder David John Ellingsen, 57, of Springfield, is also facing a separate administration investigation after another business, Gas and Plumbing Australia Pty Ltd, collapsed last year with more than $16m in debts – 13 years after another firm went bust.

Administrators are investigating whether there were any possible business breaches of the corporations law – including trading while insolvent – as they chase personal loans worth more than $4m.

The high-profile entrepreneur behind the Jim’s Group empire, Jim Penman, has further threatened legal action over use of his name and trademarks after terminating an agreement with Metropolitan two years ago.

Jim Penman, owner of the Jim's Group empire, has made multiple allegations against Metropolitan. Picture: Jason Edwards

David Ellingsen has not responded to inquiries seeking comment.

He accused Metropolitan, which claims to employ more than 300 workers in eight Australian cities including Adelaide, of engaging in “intellectual property infringement … misleading and deceptive conduct (and) unauthorised use of … name and trademarks”.

Company records show Mr Ellingsen’s wife, Natalia Kate Ellingsen, 48, is sole director of Metropolitan’s current parent company, Plumbing & Gas Pty Ltd, which has 45 different national brands.

These include Cyber Plumbing, Mr Emergency, 23 Hours Plumbing, Female Choice Plumbing, Plumber Near Me, Upside Down and Metropolitan Heating and Cooling.

The couple, who married at Carrick Hill in 2013, have not responded to The Advertiser’s requests for comment.

Property records show Ms Ellingsen owns several properties including the couple’s $2.17m southeastern Adelaide foothills home with city views and a $1.12m Glen Osmond premises.

She also owns a $1.2m Adelaide Hills sheep farm at Flaxley, near Mt Barker, which according to a now deleted website boasted of being “home of the world’s once most expensive Australian White Stud”.

The ram, named White Gold, cost a record $165,000.

State officials said a longstanding Consumer and Business Services investigation is ongoing, alongside an Australian Competition and Consumer Commissioner inquiry.

Consumer and Business Affairs Minister Andrea Michaels urged customers who believed they were wronged to contact her agency.

“I am deeply concerned about the number of complaints sent to me and to Consumer and Business Services in relation to Metropolitan Plumbing and its associated entities,” she said.

Consumer and Business Affairs Minister Andrea Michaels said she was “deeply concerned” by the allegations against the company. Picture: Keryn Stevens

Natalia and David Ellingsen. Picture: Paula Alexander Photography

“I have raised my concerns about the complaints directly with the CBS Commissioner (Brett Humphrey) and I can confirm this matter is under active investigation.

“The matters involved here are both concerning and complex and CBS is currently assessing evidence to determine the best course of action.

“I encourage anyone who has had problems with this business who have not yet contacted CBS to get in touch so their matters can be considered through this process.”

She urged consumers to obtain at least three quotes from different businesses and if “you’re being pressured to make a quick decision, that’s a red flag”.

An ACCC spokeswoman said the federal agency was aware of Metropolitan complaints.

“For some time now, the ACCC and other … regulators have been aware of the concerns that have been raised by consumers in relation to services supplied by Metropolitan Plumbing and related businesses,” she said.

“The concerns raised by consumers continue to be investigated by … regulators.

“If consumers have concerns about the service provided by Metropolitan Plumbing, or its related businesses, they should contact their local state or territory fair trading and consumer affairs authority.”

A woman was seen inside their Springfield home but didn’t answer the door. Picture: Tim Joy

Declining to provide specific details, she referred further inquiries to CBS as state and territory consumer protection agencies enforced Australian Consumer Law.

She added: “Before engaging services consumers should first seek and compare quotes from a number of different suppliers.

“Consumers should also conduct their own research into suppliers, including checking independent review platforms for consumer testimonials.”

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Melbourne-based Mr Penman, who founded his empire in 1989, said he terminated a 2016 Jim’s Plumbing agreement in March 2023 due to the volume of customer complaints.

“I wish we never got into business with them – it’s not been a good experience,” he said.

“They continue to use my brand name and it drags our good name down. I will sue them if they don’t stop.”

The company is known for its electric blue insignia. Picture: Instagram

Mr Ellingsen, a plumber for 35 years whose former company had almost 150 subsidiary brands nationwide, placed that business into voluntary administration in April last year after incurring more than $8m in trading losses across 2022 and 2023.

Documents filed with the corporate regulator show more than $16m in debts – including almost $14.3m owed to the Australian Taxation Office and more than $477,000 to Revenue SA. He also has $4,006,430 in unrecoverable personal loans.

Administrator Stephen James, of BCR Advisory, told creditors that Mr Ellingsen had been slapped with an ATO “director penalty notice”, which is issued when a company gets behind in tax debt payments.

David Ellingsen’s former business plunged into voluntary administration last year.

Over the past fortnight, the Ellingsens have failed to respond to emails, letters, phone calls, text messages and visits to their various properties.

He is reviewing company books and records to determine if it traded while insolvent, according to a July 2024 report filed with the Australian Securities and Investments Commission,

Mr James said his “investigations are ongoing so there is nothing to report at this stage”.

Over the past fortnight, the Ellingsens failed to respond to multiple emails and letters containing detailed allegations, and did not return phone calls or text messages seeking comment.

At the couple’s North Tce and Glen Osmond offices, which had restricted entrances and multiple security cameras, colleagues said Mr Ellingsen wasn’t in.

A woman seen inside their home didn’t answer the door.

Originally published as Major investigation into Metropolitan Plumbing after deluge of overcharging complaints