Energy disconnections have surged in recent months as customers battle costly bills

MORE than 1000 Victorians a week are having electricity or gas disconnected as households struggle to pay soaring bills, latest data shows.

More than 1000 Victorians a week are having electricity or gas disconnected as households struggle to pay soaring bills.

MORE than 1000 Victorians a week are having electricity or gas disconnected as households struggle to pay soaring bills.

Essential Services Commission records show retailers cut off 8559 electricity and 5027 gas residential customers in the three months to June because of unpaid accounts.

That’s the equivalent of almost 150 a day, or 1045 a week.

Electricity disconnections were a staggering 46 per cent more than the same period a year earlier, while gas was up 28 per cent.

More than 1000 Victorians a week are having electricity or gas disconnected as households struggle to pay soaring bills.

The regulator’s latest energy market update also warns “misleading” headline discounts mean a 37 per cent advertised price cut with one retailer may be barely different to a 10 per cent offer from another.

RELATED: SOLAR HOME BATTERY SALES RISE

COMPO FOR UNFAIR DISCONNECTIONS

ESC chairman Ron Ben-David said it was easy to see why customers got confused, with high discounts not always leading to the lowest possible electricity bill.

“When the offers appear to be different, but essentially cost the same, there’s no transparency for the customer,” Dr Ben-David said.

ESC analysis found examples of a 10 per cent and 20 per cent electricity discount offer with different retailers resulting in the same $1020 annual bill. A 37 per cent discount with yet another company actually ended up being $10 more expensive.

The report advises consumers shopping around for a new contract to not solely consider the headline percentage discount amount, but the deal leading to the lowest dollar amount.

While switching from a default standard contract to a market contract could lead to substantial savings, in some cases you could end up paying more if conditions such as paying on time were not met.

Offers could be compared via sites such as the government-run Victorian Energy Compare.

“Our analysis highlights how misleading headline discounts can be,” the report states.

Data collected from retailers reveals 28,628 electricity customers were disconnected for unpaid bills for all of 2016-17. That’s down from 32,360 in 2015-16, but still at disturbing levels.

Residential gas disconnections reached 17,494 for 2016-17, compared with 24,150 for the previous financial year.

Almost 37,000 energy customers in hardship programs for that quarter owed retailers $60 million — an average $1629 each.

WHAT TO EXPECT WHEN SIGNING UP TO A NEW PLAN

BEFORE you sign up to a new energy plan, the retailer must provide you with information in plain English so you can give your agreement (i.e. your consent) to accept the offer.

YOUR retailer must keep a record of your consent for a minimum of two years. If they can’t confirm that you provided your consent, your contract with the retailer is void. You can ask for a copy of your consent record if you don’t remember agreeing to the offer or you think the retailer signed you up incorrectly.

MAKE sure you understand the terms and conditions before you agree to an offer. Ask questions if you are unclear. If signing up online, make sure you read the terms and conditions before clicking to accept the offer.

YOUR retailer is required to have a program and plan in place to help you manage your energy costs. Make sure you contact your retailer to find out how they can help you if you are facing payment difficulty. Your retailer may assist you by putting you on a financial hardship program.

IF you are on a hardship program and are willing to pay and engage with your retailer (by keeping them informed if you are having problems) they are not allowed to disconnect you if you don’t pay your bills.

IF your power has been disconnected and you have a smart meter (that is remotely operated and your supply can be safely reconnected), your retailer must attempt to have you reconnected in 2 hours, if you request this.

RETAILERS have complaint and dispute handling procedures available on their websites. You have the right to raise a complaint with your retailer if you are not happy with its service. Give them a call (your bill will have their contact number). If you are not getting traction with the retailer, you can escalate your complaint to the Energy Water Ombudsman (Victoria) on 1800 500 509.

[e-mail]

@KarenCollierHS