A report yesterday from the Energy Industry Ombudsman revealed a 39per cent jump in consumer complaints last financial year compared with 1998-99.

A surge in billing problems was largely responsible for the rise.

Consumer advocates are warning about the impact on customers when the retail power market moves to open competition in mid-2001.

The privatisation of Victoria's electricity system has involved progressively opening markets to competition between the five distribution companies Citipower, United Energy, TXU, Powercor and AGL. The final stage in the process is expected in mid-2001, when households will join the open market.

Energy Industry Ombudsman Fiona McLeod ascribed much of the increase in complaints about electricity and gas services (5302 cases lodged in 1999-2000) to growing public awareness of her office.

But she said the increase also indicated significant problems arising from company billing systems.

“The effects of system problems flowed on to customers, with many experiencing extended periods of estimated bills or no bills, followed by high or multiple bills in quick succession,” she said.

Ms McLeod said many households had difficulty meeting such payments. Power companies needed to offer flexible payment arrangements.

The Ombudsman singled out Powercor, which she said had been the source of more than 37per cent of all complaints involving electricity.

Energy Action Group president Andrea Sharam said billing had developed into a huge problem, with no sign that power companies had resolved systemic problems in handling accounts.

Ms Sharam said it was a matter of importance for consumers because of the difficulty of verifying the accuracy of accounts.

She said there was also concern that, as part of their move into a open market, companies would increasingly require security deposits from new customers.

Ms Sharam said many low-income households were forced to seek help to pay deposits, essentially forcing the community and the government to subsidise the power companies.

A report by the office of the Regulator-General released on Wednesday showed that, while the overall reliability of Victoria's electricity system had improved in the first six months of the year, the number of disconnections had risen substantially, particularly among business customers.

The report showed a 96per cent jump in the number of business disconnections, largely among AGL and United Energy customers.

United reported a jump in customers vacating premises without settling their accounts. The jump was also due to both companies reinstating disconnection policies.

A spokesman for acting Energy Minister Lynne Kosky said the increase in complaints to the Ombudsman showed the office was working, with increased awareness among the community.

The Age

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