Electricity retailers put on notice to ‘behave responsibly’ dealing with disconnections and debt

Power retailers have been put on notice to behave responsibly when dealing with customers as disconnections and debt levels increase amid the power crisis.

Victoria’s Essential Services Commissioner says she has heard “troubling” stories about people choosing not to heat their homes because of concerns over high bills or energy shortages.

Electricity retailers have put on notice to behave responsibly when dealing with customers as disconnections and debt levels increase.

The ESC most recent electricity market report showed the average debt of energy customers facing difficulty was up by at least 8 per cent during the first three months of this year.

Commissioner Kate Symons said it was a great shame that the nation’s energy crisis has damaged consumer confidence.

Of particular concern were those who were avoiding using electricity over fear of bill shock or blackouts.

“I have heard troubling stories about Victorians being reluctant to heat their homes during this cold winter, for fear of incurring unaffordable winter bills and contributing to an energy shortage,” Ms Symons said.

Disability pensioner Ted Evans with dog Fred at home. Ted is concerned with the cost in power increasing with many months of winter to go. Picture: Nikki Davis-Jones

“We have been advised of instances where retailers have contacted customers multiple times, advising them to urgently find new retailers in order to avoid increases in energy bills. I have also heard that some of these messages alarmed consumers concerned about their ongoing energy supply.

“This is simply unacceptable, and as chairman of Victoria’s Essential Services Commission, I expect everyone in the energy industry to redouble their efforts in putting consumers at the centre of the energy system.”

Public concerns over energy prices have been heightened by increased gas prices, shocks to the electricity market and supply chain pressures.

Households on variable market offers have also been waiting to see the impact of these issues on their bills when their prices can be changed in August.

As of March, there were 62,618 electricity and 47,458 gas customers receiving assistance from retailers to pay their bills but could still pay to maintain their usage, ESC data shows.

This represents more than 2 per cent of total customers.

Another 20,138 electricity and 15,445 gas customers were receiving support but could not pay their ongoing usage.

Disconnections for non-payment have returned to pre-Covid levels, with a monthly average of 2301 homes cut off from electricity this year and 816 from gas.

Ms Symons said there were strict rules about how electricity companies contacted customers and told them about what offers were available to them.

Mum of four Evelyn Tiska is forced to cut back on essentials to pay for soaring power bills. Picture: Carmela Roche

“I have made it clear to industry participants that their licence to supply an essential service to Victorians is a privilege, and with that privilege comes an obligation to act responsibly,” she said.

“The commission is closely monitoring the behaviour of energy businesses and will not hesitate to act by enforcing the strong protections that exist for the benefit of Victorian energy households and small businesses.

“Victorians should contact their energy retailer regularly to check that they are on the best price.

“And if you are having trouble paying your energy bills, you are entitled to assistance from your retailer. Ask for help early.

“Talk to your energy retailer about payment plans, and what concessions, rebates, utility relief grants might be available, and notify your retailer urgently if you or someone at your premises requires life support equipment.”

Between January and March this year, $1.03 million in penalties were paid by companies that wrongfully disconnected customers or failed to notify them about a planned power interruption.