volume 4 2014 ewoq update - ewoq.com.au · welcome to the fourth and final ewoq update for 2014....

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Welcome to the fourth and final EWOQ Update for 2014. As we bring 2014 to a close, it is pleasing to look back at all that we have achieved this year. We started with the results of an independent review of the operational and strategic performance of the office and worked throughout the year to implement the reviewer’s recommendations for further improvement in the services we provide to Queensland energy and water customers. This year also saw the introduction of our Indigenous Investigation and Conciliation Outreach Officer, a position that was established to investigate complaints and liaise with Aboriginal and Torres Strait Islander communities and representative bodies concerning electricity issues and EWOQ’s dispute resolution function. This role has been extremely well received and we have been able to meet with a larger number of communities. One other initiative of my office to improve our communications with stakeholders and customers was the introduction of social media. We have had a very positive response so far and look forward to further developing our presence in 2015. My office also conducted a survey of customers with billing or credit complaints and found a clear imperative for electricity retailers to improve their complaints service. Early in the year we also began to notice an increase in the number of people struggling to pay their bills, with an increase of 80 per cent seen at the end of the financial year. We have been working closely with scheme participants to help them improve their customer service and work with customers who are struggling to pay their bills. In this edition of EWOQ Update we warn customers to be wary of credit fix agencies and provide some tips on cooling summer electricity costs. As usual, we take a look at some cases where we have been able to help consumers with a problem they have been unable to resolve with their energy or water company, and touch on the community outreach work we have been doing around the state. I hope you find this edition of EWOQ Update informative, and if you have any feedback for future editions, please let me know by emailing [email protected]. I wish you and your family a merry Christmas and a prosperous 2015. Forbes Smith Energy and Water Ombudsman Message from the Ombudsman EWOQ update In this issue Message from the Ombudsman EWOQ warns electricity consumers to be wary of unscrupulous credit fix agencies Case study: bills not received for two years Industry round up Complaints snapshot Community outreach Case study: customer with no account Cool your summer electricity costs Case study: registered water consumption not possible Connect with us on social media Know who to contact Get the facts energy+water ombudsman QUEENSLAND FREECALL 1800 662 837 INTERPRETER 131 450 TTY/VOICE 133 677 EMAIL [email protected] WEB www.ewoq.com.au MAIL PO Box 3640, South Brisbane Q 4101 Volume 4 2014 Were you forwarded this copy of EWOQ Update? Email [email protected] and request to join our mailing list. 1 2 2 3 4 4 5 6 3 6 6 4

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Welcome to the fourth and final EWOQ Update for 2014. As we bring 2014 to a close, it is pleasing to look back at all that we have achieved this year.

We started with the results of an independent review of the operational and strategic performance of the office and worked throughout the year to implement the reviewer’s recommendations for further improvement in the services we provide to Queensland energy and water customers. This year also saw the introduction of our Indigenous Investigation and Conciliation Outreach Officer, a position that was established to investigate complaints and liaise with Aboriginal and Torres Strait Islander communities and representative bodies concerning electricity issues and EWOQ’s dispute resolution function. This role has been extremely well received and we have been able to meet with a larger number of communities. One other initiative of my office to improve our communications with stakeholders and customers was the introduction of social media. We have had a very positive response so far and look forward to further developing our presence in 2015.

My office also conducted a survey of customers with billing or credit complaints and found a clear imperative for electricity retailers to improve their complaints service. Early in the year we also began to notice an increase in the number of people struggling to pay their bills, with an increase of 80 per cent seen at the end of the financial year. We have been working closely with scheme participants to help them improve their customer service and work with customers who are struggling to pay their bills.

In this edition of EWOQ Update we warn customers to be wary of credit fix agencies and provide some tips on cooling summer electricity costs. As usual, we take a look at some cases where we have been able to help consumers with a problem they have been unable to resolve with their energy or water company, and touch on the community outreach work we have been doing around the state.

I hope you find this edition of EWOQ Update informative, and if you have any feedback for future editions, please let me know by emailing [email protected]. I wish you and your family a merry Christmas and a prosperous 2015.

Forbes SmithEnergy and Water Ombudsman

Message from the Ombudsman

EWOQ update

In this issue

Message from the Ombudsman

EWOQ warns electricity consumers to be wary of unscrupulous credit fix agencies

Case study: bills not received for two years

Industry round up

Complaints snapshot

Community outreach

Case study: customer with no account

Cool your summer electricity costs

Case study: registered water consumption not possible

Connect with us on social media

Know who to contact

Get the facts

energy+water ombudsman queensland

FREECALL 1800 662 837INTERPRETER 131 450

TTY/VOICE 133 677EMAIL [email protected]

WEB www.ewoq.com.auMAIL PO Box 3640, South Brisbane Q 4101

Volume 4 2014

Were you forwarded this copy of EWOQ Update? Email [email protected] and request to join our mailing list.

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Case study: bills not received for two yearsAfter installing a solar system, the customer noticed that her first bill did not contain any credit for the solar energy which had been fed back into the grid (feed-in tariff). The customer raised the issue with her retailer who promised to rectify the omission. Nothing more was heard from the retailer or any further bills received. The customer contacted her retailer on numerous occasions over two years requesting a bill, but none was received. The customer contacted EWOQ worried that she would eventually receive a large bill she would be unable to pay.

Outcome: On investigation, EWOQ confirmed that the first bill was incorrect and needed to be reversed and a new bill issued. However, due to a system upgrade the bill reversal remained incomplete and no more bills had been issued to the customer. The retailer manually adjusted the solar export credits for the first bill and issued a back-bill for the last nine months’ consumption (the Electricity Industry Code prevents retailers from issuing back bills for more than nine months where there is an error on their part). In addition, the retailer apologised to the customer and paid her $100 as a gesture of goodwill.

As the cost of living increases, more and more electricity consumers are having difficulty paying their electricity bill and are being credit listed for the debt, sometimes by mistake.Often, customers who are credit listed turn to credit repair agents to sort it out.In many instances credit repair agents fail to mention that they will merely send the case to the Ombudsman for resolution, and that his services are free.EWOQ is very concerned that there are customers, some of whom are in significant financial difficulty, paying for a service they can access themselves for free.We have also seen a number of instances recently where credit repair agents charged a fee, offer some general advice, and then direct the customer to us to have their issue resolved.Queenslanders are reminded that the role of an Ombudsman is to act independently to resolve disputes, and that services are free of charge.If a customer is having credit issues with their electricity, gas or water provider, they should speak to the provider first and try to resolve the issue.If they are not satisfied with the outcome, the customer can contact the Energy and Water Ombudsman Queensland.

EWOQ warns electricity consumers to be wary of unscrupulous credit fix agencies

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Complaints snapshotEWOQ closed cases: September—November 2014

Case Description September October November TOTALBilling High/disputed bills, delays, errors, estimated accounts, fees and

charges, rebates/concessions, tariff, meters, refunds397 424 367 1,188

Credit Payment difficulties, disconnection, bad debt 159 197 174 530Customer service Failure to inform/respond, incorrect advice, poor attitude/service,

privacy issues96 97 75 268

Land Impact of network assets, maintenance, vegetation management 3 4 3 10Marketing Conduct of energy marketers, misleading information, pressure,

non-account holder signed up6 0 1 7

Provision Problems with new or existing energy connections 24 35 35 94Supply Quality of energy supply, damage/loss, outage 8 8 9 25Transfer Error in billing/transfer of account due to switching retailers,

contract terms, delay in transfer, site ownership36 34 40 110

Other Customer issues that do not fall into the above categories 11 13 7 31General enquiry General enquiries for information 84 115 78 277Referral Customer is referred to other organisation 159 185 125 469TOTAL 983 1,112 914 3,009

Industry round-up• The Queensland Competition Authority (QCA) has released a draft report recommending bulk water prices for south east Queensland for

2015-18. Currently, bulk water prices vary from council to council, however by the end of the decade, a single common price is expected to apply across south east Queensland. Next year, six of the eleven councils will see their bulk water charges decrease, on the other hand, some council areas are paying less for bulk water and will therefore see increase in 2015-16.

• The QCA is also encouraging all electricity customers in south east Queensland to shop around for the best electricity deals. Customers can choose between the notified prices set by the QCA and market contracts offered by competing retailers. The QCA offers an easy to use online tool for customers to test their current plans and, possibly, find more competitive offers from other retailers.

• Queensland electricity distributors, Energex and Ergon Energy have submitted regulatory proposals to the Australian Energy Regulatory (AER). These set out the revenues they propose to collect from electricity consumers through distribution charges for the next five year period (2015–20). To help energy consumers better understand the proposals, the AER has also released an issues paper that focusses upon the key aspects of Energex and Ergon Energy’s proposals. The paper sets out the AER’s initial impressions of the distributors’ proposals, including what they think will be some of the key issues for their assessment.

• Ergon Energy is warning residents to be on the lookout for suspicious activity around streetlight poles after a spate of tampering with streetlight wiring was discovered in the Idalia area of Townsville recently. Ergon crews have been called to several sites in the suburb where street light poles and wiring within the pole had been accessed and tampered with. In at least one of the instances, live wiring was left exposed by the unknown perpetrators, potentially exposing members of the public to the risk of electric shock.

• Unitywater have commenced work on their annual infrastructure maintenance program and will be replacing water meters nearing the end of their lifecycle across Moreton Bay, Sunshine Coast and Noosa regional council areas. Residents will receive a notification card in their letterbox at least 48 hours before any works and, if they are home on the day of the work, Unitywater’s authorised contractor will make contact with them prior to replacing the meter.

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Community outreachOur staff in Central Queensland, North Queensland and South Queensland have been busy over the past few months, attending many organisations and community events including:• Attending the ICAN Yarrabah Community event to launch new appliances for the No-Interest-Loan scheme.• Meeting with the Far North Queensland Consumer Taskforce, the Cairns Supporting Families Alliance and Cairns RSL Sub

Branch.• Participating in the Salvation Army Moneycare Financial Counselling Service’s

Bring Your Bills Day held at Goodna.• Meeting with the Queensland Farmer’s Federation.• The Ombudsman’s regional trip visiting the State Members for Gympie,

Maryborough, Hervey Bay, Bundaberg, Nanango, Condamine and Toowoomba. • Also visiting staff at Gympie Regional Council, Fraser Coast Regional Council,

Bundaberg Regional Council, North Burnett Regional Council, South Burnett Regional Council and Toowoomba Regional Council.

• Meeting with Rockhampton stakeholders including Red Cross, Uniting Community Care, Anglicare, Salvation Army, St Vincent De Paul and the Community Development Officer for Rockhampton Regional Council.

We’re always interested in speaking to members of the community all around Queensland. If you would like a member of EWOQ to attend a community outreach event you are holding, please email EWOQ at [email protected].

Case study: customer with no accountThe owner of a pizza shop contacted her retailer with a query, only to find they had no record of her account. The customer had arranged for her bills to be paid by direct debit from her account and asked the retailer what bills she had been paying and where her money had gone. After 10 months, and with little progress in response to her complaint, she contacted EWOQ.

Outcome: On investigation, EWOQ was advised that the retailer had been billing the customer for consumption at the building next door to hers. The retailer agreed to reverse all of the bills and transfer the credit from this account to a new account established for the customer. The retailer apologised for the poor customer service and as a gesture of goodwill, paid her $100.

Staff from our Brisbane office collected toys and books for the Smith Family Toy & Book Appeal. A collection was also held for the RSPCA to help with the influx of animals over the Christmas season.

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Cool your summer electricity costsDon’t let your bills overheat this summer

Following the recent heatwave and with a long, hot summer predicted, Energy and Water Ombudsman Forbes Smith is reminding Queenslanders to watch their electricity consumption.Many people contact the Energy and Water Ombudsman Queensland (EWOQ) for assistance with high electricity bills, especially after a hot summer or cold winter,” Mr Smith said.The heat rolls in around the same time as people begin to spend more time at home for the Christmas break, and many air-conditioners are switched on and forgotten about for two weeks.”Mr Smith said that, on average, one large family-room air conditioner could add over $200 to an electricity bill if used for five hours a day over the summer months.*When you add this on top of your average electricity bill, the increase can be quite significant,” he said.For every degree cooler you set an air conditioner, you will be charged more on running costs. Just by setting your air conditioner to 24 degrees, you can save $50.”Mr Smith also stressed the importance of turning appliances off at the switch, including your air-conditioner, when not in use.Appliances use significant amounts of electricity in standby mode - as long as that little red light is on, you are using power. Many people have a power switch next to the inside or outside unit that allows them to turn the power off entirely to their air-conditioner when not in use, which can save even more money,” said Mr Smith.Mr Smith said people who were experiencing payment difficulties should contact their electricity supplier immediately to establish a payment plan, a far better option than being disconnected.If you have a concern relating to your energy or water service, visit www.energywatercomplaints.com.au to see if the Energy and Water Ombudsman can assist.

Case study: registered water consumption not possible

The customer’s property was serviced by a trickle feed meter that provided between two and four litres per minute. The owner largely relied on tank water and only used town water to top up the tank in dry conditions. Following heavy rainfall that filled the customer’s water tank, the customer turned off the water meter and for two months used only tank water. When the customer received his next bill he found that he had been charged for 1500kl of water. The customer did not think he could have used that much water given the meter had been turned off for two of the four months covered by the bill.

Outcome: On investigation, the meter was found to be registering within the prescribed margin of error and there was a flow control valve fitted. The retailer confirmed the flow rate to be 3.2 litres per minute, and the maximum amount of water that could have possibly passed through was 414 kL. Consequently, the retailer waived the full water consumption recorded for the period, totalling $5,000.

Scheme participants (as at 1 December 2014)

Electricity retailersAGL

Click Energy

Diamond Energy

Dodo Power & Gas

EnergyAustralia

Ergon Energy

Lumo Energy

Momentum Energy

Origin Energy

Powerdirect

Qenergy

Red Energy

Sanctuary Energy

Simply Energy

Gas retailersAGL

Maranoa Regional Council

Origin Energy

Western Downs Regional Council

Energy distributorsENERGEX

Ergon Energy

Essential Energy

Gas distributorsAPT Allgas

Envestra

Maranoa Regional Council

Western Downs Regional Council

Water distributor-retailersGold Coast City Council

Logan City Council

Redland City Council

Queensland Urban Utilities

Unitywater

We have a number of fact sheets available to customers. These include:

• Electricity, gas and water bills explained• High electricity, gas or water bills• Payment assistance and rebates• Getting electricity, gas or water connected• Getting connected: newly built• Electricity and gas market

contracts explained• Electricity and gas marketing explained• Electricity, gas and water meters explained• Facing disconnection/restriction• Who to contact with a complaint• Electricity retailers in regional Queensland

To view or order copies of the fact sheets, please visit www.ewoq.com.au/Publicationsmedia/Brochuresfactsheets.

Get the facts

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energy+water ombudsman queensland

Know who to contactIf you have experienced a problem with your electricity, gas or water supplier, there are a number of complaint agencies in Queensland and across Australia who can assist you.The Energy Water Complaints website (www.energywatercomplaints.com.au) is an initiative of the Energy and Water Ombudsman Queensland in partnership with several other agencies, designed to enable you to quickly and easily contact the appropriate authority to lodge your complaint and get help.

Many people contact the Energy and Water

Ombudsman Queensland (EWOQ) because they

have problems paying their bill.

If you cannot afford to pay your bill, contact your retailer im

mediately to find

out what assistance they can provide so you can avoid disconnection or

water restriction.

PAYMENT PLANS

A payment plan allows you to pay an agreed amount regularly towards your bill.

You should only agree to an amount you can realistically afford because if you

break the payment plan you can be disconnected or restricted. Your retailer can

only refuse a payment plan if you have defaulted on previous arrangements.

If you and your retailer cannot agree on the amount of your payment plan,

contact EWOQ for assistance.

CENTREPAY

Centrepay allows you to automatically deduct an amount from your Centrelink

pension or benefit payment into your energy account.

By making a payment every fortnight, you will reduce the amount owing

when you receive your next bill, making it easier to pay.

FINANCIAL HARDSHIP PROGRAMS

If you are experiencing extreme difficulty paying a bill due to unforeseen

circumstances, such as loss of income or illness, a financial hardship program

can help you pay off your debt through an affordable payment plan.

Hardship programs can also help you be more energy or water efficient and

reduce costs in the future.

Contact your retailer for more information.

HOME ENERGY EMERGENCY ASSISTANCE SCHEME

The HEEA scheme is a one-off payment to help people experiencing a short-

term financial crisis or unforeseen emergency and cannot pay their energy bill.

Contact your energy retailer for more information.

PENSIONER REBATES

Electricity and gas rebates are available to eligible pensioners, holders of a

Queensland Government Senior Card or Pensioner Concession Card. Water rebates

are available to eligible pensioners in south east Queensland who hold a Pensioner

Concession Card or Gold Card. The annual rebate is applied to your account.

Contact your energy or water retailer to apply for a rebate.

Payment assistance

and rebates

USE THIS FACT

SHEET IF YOU:

• can’t afford to pay all of

your bill by the due date

• are in short-term,

unforeseen financial

difficulties

• are a pensioner

• rely on electricity

to manage medical

conditions

• need help managing

a financial crisis

• want to save money

on your next bill

energy+water ombudsman queensl

and

A lot of customers contact us because they have

problems paying a high bill. Many people tend to

under estimate their energy or water usage and are

unaware of the amount of energy or water their

home or business actually uses.

POSSIBLE CAUSES OF HIGH BILLS

High electricity, gas or water bills

USE THIS FACT SHEET IF YOU:

• want to know what is

causing your high bill

• want to be energy and water efficient

• have difficulty paying your bill

energy+water ombudsman queensland

The weatherIt’s important to stay comfortable

during a cold winter or hot summer

but it’s also important to keep costs

down. The increased use in air

conditioners, heaters or water for

your garden during these times can

significantly increase your bill.

More people in your homeOften people forget that they had

guests stay for a considerable

amount of time, additional

housemates or new members

of the family have joined the

household. This can impact on your

energy and water usage.

New technologies and stand-by modeNew changes in technology can

contribute to the increase in energy

use, for example LCD and plasma

televisions consume more power

than the traditional cathode ray tube

televisions. Also, many modern

household appliances use significant

amounts of electricity in stand-by

mode (when the appliance is not in

use but is still turned on at the wall).

So if you’re not using it, turn it off at

the wall where practical.

Faulty appliancesFaulty, old and inefficient appliances

can cause a significant increase in

the total amount of energy used.

An electrician can check your

appliances for faults if you believe

there is a problem.

Energy guzzlersSome home appliances are obvious

energy guzzlers such as heaters

and air conditioners, but things like

pool pumps and fish tank pumps

can also use a lot of electricity.

Leaks/faulty metersAn unusually high bill could be caused

by a gas or water leak or faulty meter.

Read your meters to check for leaks

or ask your energy or water supplier

to check. You can also ask for a meter

test to ensure it is working accurately

(you may be charged for this).

Estimated accountsYour energy or water supplier is

entitled to estimate your bill, which

is usually based on prior usage. This

means you could be sent a high

‘catch up’ bill when your meter is

read or you are paying for more than

you’ve used. To avoid this, contact

your retailer to find out what other

arrangements can be made to read

your meter.

Other fees and chargesThere are a number of other fees

and charges that can be included

in your bill, such as late payment

fees or account establishment

fees. These are additional to your

consumption charges.

Continued over page >

Energy and water bills can sometimes be hard

to understand. This fact sheet aims to take the

confusion out of reading and paying your bill.

PRICETariffs, rates or charges are all types of pricing structures that determine what

you pay for each unit of electricity, gas or water you consume.

The Queensland Competition Authority (QCA) sets a regulated energy retail

tariff for customers who are in a standard contract with their energy retailer

(not a market contract), which is adjusted on or around 1 July each year.

Tariffs for market contracts are set by energy retailers, not the QCA, and are

negotiated between you and your retailer.

Water prices in south east Queensland are set by your local water distributor-

retailer.Prices can be tiered which means there is a different price for the first

consumption bracket compared to the next brackets. Contact your electricity,

gas or water retailer to find out what and how you are charged.

Electricity is measured in kilowatt-hours (kWh), reticulated natural gas is measured

in megajoules (MJ) and water is measured in kilolitres (kl). These are the basic

units your retailers use to charge you for your energy and water consumption.

For information on current tariff prices visit the QCA at www.qca.org.au.

Electricity, gas and

water bills explainedUSE THIS FACT SHEET

IF YOU WANT TO KNOW ABOUT:• the price you’re charged

• fees and charges• what’s included on your bill • paying your bill

• estimated bills• rebates• what to do if you think

your bill is wrong

energy+water ombudsman queensland

OTHER FEES AND CHARGES

There are a number of other fees and charges that can make up the cost of your bill:

• Service/networkcharges(forthedeliveryofenergyand

the maintenance of the poles, wires and pipelines)

• Bulkwatercharge• Fixedwaterandsewerageaccesscharges

• Securitydeposits• Cancellation/terminationcharges

• Latepaymentfees

• Disconnectionpenalties

• Reconnectioncharges

• Specialmeterreadingfees

• Creditcardprocessingfees.

Connect with us on social media Don’t forget to follow EWOQ on Twitter and Facebook!

Check out our social media accounts for tips and information on the rights and responsibilities of both customers and energy and water companies, and important energy and water saving tips and initiatives. Through social media we hope to boost interaction between EWOQ and the community by informing Queenslanders of the ways in which we can assist with their energy and water problems and reinforcing the message that it is ok to complain.

Follow EWOQ on Twitter at www.twitter.com/EWOQld or find us on Facebook here.