Victorian energy customers are getting payouts for wrongful disconnections

ENERGY retailers are getting caught unfairly disconnecting customers who are battling to pay bills, with some householders awarded a massive amount in compensation.

Energy retailers are accused of pulling the plug too quickly on hundreds of customers.

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STRUGGLING Victorians unfairly disconnected from gas or electricity have been awarded compensation of up to $17,000 each.

Energy retailers are accused of pulling the plug too quickly on hundreds of customers.

Some households have had to cope with no power or gas for more than a month after rules to ensure disconnection due to unpaid bills is a last resort were disregarded.

Retailers must follow certain procedures, such as giving proper disconnection warnings and offering reasonable payment plans to those in financial distress, before cutting supply.

Customers lodging disconnection complaints with the Energy and Water Ombudsman Victoria were paid out a combined $453,000 from January to August alone, figures obtained by the Sunday Herald Sun reveal.

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Ombudsman Cynthia Gebert said the circumstances of some consumers racking up massive energy debts and then being disconnected was “pretty dire”.

“There are customers who are in payment difficulties who aren’t being offered the assistance they need,” Ms Gebert said.

“We are still finding customers getting themselves into trouble, often with multiple utilities. I am disturbed and alarmed this is an ongoing issue, particularly as we have had a cold winter.”

In one case, a man in huge debt received a $17,249 wrongful disconnection payment after his gas supply was cut off for more than a month. He and his partner had lost their jobs, and an unrealistic payment plan had been suggested.

A retiree who advised he was in financial hardship and was denied a utilities relief grant because his electricity retailer misspelled his name on an account got $13,096.

Another customer cut off after not paying a gas bill in over a year was credited $6983 as he was not told about hardship assistance, and had not received a concession for several years.

Compensation has been awarded to some Victorian families unfairly disconnected from gas or electricity.

More than half the 771 cases investigated so far this year resulted in retailers paying customers, either with (232) or without (190) admitting rule breaches.

Consumers can get up to $500 for every day of wrongful disconnection. The amount is capped at $3500 if a retailer is not contacted within 14 days.

Inadequate or unreasonable payment plans; problems with bill reminders or disconnection notices; and administration blunders are common reasons for compensation.

The state’s energy regulator, the Essential Services Commission, will soon release updated rules regarding payment difficulty. The aim is to reduce energy debt and disconnections.

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@KarenCollierHS