Cold-hearted power companies tell shivering pensioners to rug up KAREN COLLIER HERALD SUN JULY 30, 2014 11:00PM SHARE FREEZING pensioners who can’t afford to heat their homes say energy firms are telling them to switch off and rug up instead. Power companies are also accused of advising some desperate customers to borrow from family and friends to pay off their bills. Shocking allegations of insensitive treatment are outlined in a Consumer Action Law Centre report, which says staff dealing with struggling customers should be given lessons in how to treat them with respect. In one potentially dangerous case, a 77-year-old with a sick husband who was struggling to pay $1500 said she was told to switch off the gas heater and “wear a coat and blanket to keep warm instead”. A jobless woman with a $3000 debt said her power company demanded her credit card details, and suggested she borrow from family and friends to avoid disconnection. Another low-income customer reported her partner was repeatedly harassed by phone at work for higher repayments. Major retailers AGL, EnergyAustralia, and Origin Energy, and smaller operators such as Neighbourhood Energy, are among those who have attracted complaints over their treatment of battling customers. The report found: “Energy retailers often ... suggest repayment levels that are unaffordable and exacerbate hardship. If a consumer is unable to afford a proposed instalment arrangement, they are commonly informed accounts will be due in entirety, referred to debt collectors, or informed about the prospect of disconnection.” The Problems with Payment report found that in some cases, debts accumulated over several years before customers were put on instalment payment plans. The report, based on the experiences of 13 vulnerable Victorians over the past year, reflects problems faced by many others. Calling for efforts to detect people who are in financial difficulty earlier, it urges the use of well-trained hardship teams and affordable repayment plans. Melbourne electricity prices have surged 79 per cent over five years, and the price of gas and other household fuels shot up 50 per cent, Australian Bureau of Statistics data shows. Energy Retailers Association of Australia chief Cameron O’Reilly said the industry could “always do better”. But problems concerning affordability were a “shared responsibility”, he said. “Companies are working harder to promote hardship programs (and) trying to make it less intimidating for consumers to come forward,” Mr O’Reilly said. Consumer Action policy director Denise Boyd said: “We realise identifying and assisting struggling customers isn’t easy and customer service staff need to develop expertise.” She said “energy poverty” customers, who often lived in poorly insulated rented properties with inefficient appliances, also needed government support. South Melbourne mother Ruby Roxas said she could not afford AGL demands to pay a $2800 gas debt upfront, and had to beg staff not to increase $35 fortnightly payments. Nicole Lyons for AGL, which had an after-tax profit of $388.7 million in 2013, apologised for any distress, saying all customers should be treated with respect: “We are working with the community sector to review our processes to improve the early identification of hardship cases.” Payment plans, energy efficiency audits and government assistance are among options to help struggling customers. heraldsun.au/news/coldhearted-power-companies-tell-shivering-pensioners-to-rug-up/story-fni0fiyv-1227007823565?nk=c562e2a00c9aa431c7e2867ac7b773b1
Posted on: Thu, 31 Jul 2014 11:37:10 +0000
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