Bill shock: what to do and how to avoid it
I've received a shocking energy bill I'm sure is incorrect. I won't pay it. What happens if I don't?
Energy bills have jumped alarmingly and many are suspected to be incorrect. Not paying is not an option. But there are a number of steps you can take.
As with all supplier disputes it is best to try to sort out your disputed bill with the supplier before taking more drastic action or complaining to the consumer body. Contact your energy supplier and tell them you dispute the bill. You want your meter read again to ensure the usage reading is correct and also to check the bill. This may take some days. It is wise to pay the portion of the bill not disputed - such as the fixed charges - to show goodwill.
A meter check will cost around $44 plus GST but is refundable if your meter is faulty or the reading incorrect. You can also conduct your own reading check and line it up against the contents of your bill.
If the supplier was unable to read your meter due to a locked gate or because your dog didn't co-operate, you may have received an estimated bill and can ask for a follow-up physical reading. That could result in a larger or smaller bill.
The service provider is also obliged to help you with tips to reduce future bills by, for instance, using appliances during low charge periods, turning off appliances at connection points when not in use and switching to low-energy light bulbs.
I am still unhappy and can't afford to pay the bill. What are my options?
All licensed energy retailers are required to provide payment plans for residential users facing payment difficulties. It must set out the period of arrears payment, the amount and frequency of instalments, and must have regard to consumption needs and your capacity to pay.
If the call centre person at the energy company won't help, demand to speak to a more senior customer service representative. If you are still unable to negotiate an affordable repayment plan, contact the Energy and Water Ombudsman in your state. The Ombudsman can help negotiate a payment extension or an affordable payment plan and can arrange to have the account put on hold while the payment plan is arranged.
The negotiated payment plan may, for instance, separate current charges from arrears, set out instalments to cover current usage, and arrange for the arrears to be paid when your financial situation improves. Signing up to a plan keeps the debt collector away from your door. You may also be referred to a financial counsellor for advice and assistance with your bills. You may also be eligible for a no-interest loan scheme to replace energy-gobbling appliances.
Can I be disconnected and what can I do then?
Under the electricity and supply regulations there are minimum requirements regarding the notices an energy provider must send you prior to disconnection. You must receive at least two written warnings at least a week apart. The notices must set out the grounds for disconnection, the date on which supply will be disconnected, advice on your rights under the regulation, your right to contact the Ombudsman, information about payment plans operated by the supplier, and any government assistance that may be available to you.
The supplier must also make a reasonable effort to contact you by telephone, either before or after the written notices are sent.
If I have a poor credit record, can I be knocked back by a retailer?
A retailer who is not a designated "standard" retailer does not have to agree to give you a contract.
If you have a poor credit history you may be referred to a standard retailer in your area who is required to accept you regardless of credit history. You may be required to pay a security deposit. In NSW standard retailers are Energy Australia, Integral Energy and Country Energy. In Victoria all retailers must offer standard contracts. In Queensland it is Energex, in South Australia Origin Energy and AGL, and in the ACT it is ActewAGL.
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