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For immediate release
14 June 2004
Missing multipliers result in
backbill surprises
Recent publicity of a case that came through
the office of the Electricity Complaints Commissioner regarding
a $16,000-plus back bill has generated an increase in inquiries
about the use of multipliers.
Electricity Complaints Commissioner Judi
Jones says a multiplier is used on electricity meters that
are not large enough to record the actual electricity used.
The most affected users seem to be small business, clubs and
schools.
Normally the meter reading will be multiplied
by a factor that will show up on the bill. The result will
be a correct bill. The amount recorded by the meter is multiplied
by a factor determined by the supplier to accurately account
for electricity use at the premises.
While the commissioner's jurisdiction covers
complaints up to $10,000 only - and many cases where a multiplier
has been left off a bill for a long period of time involve
amounts above this - her jurisdiction can be increased to
$25,000 if the electricity company involved agrees.
The problem arises when the multiplier is
left off the bill. Cases the office has dealt with tend to
eventuate when a consumer switches supplier on the promise
of a discount. When they get cheaper bills from their new
supplier, they assume it is because of the discount.
"This often hides the error because the customer
expectation is that their bill will go down and when it does,
they don't realise it's because of a problem with the bill,
they think it is just the savings," Ms Jones says.
Problems can also occur if a new person
moves into the premises and has no previous billing record
to compare information.
Where there is a previous billing record,
albeit with another company, people can look at their billing
history to see if a multiplier has been applied in the past.
There is no way a customer can tell if their
meter is subject to a multiplier just by looking at the meter.
The billing error often comes to light when
companies do audits and discover customers haven't been billed
correctly. Then comes the surprise back bill, often for thousands
of dollars.
Ms Jones says the electricity supply company
will be able to tell a consumer if their meter has a multiplier
applied to it. She suggests it is best to check, rather than
wait for the company to realise a mistake. A possible alert
would be the fact that bills are lower than could be expected
for use of the premises.
"If the customer could reasonably be expected
to know that they were using more electricity than they were
paying for, they will have to pay for that electricity," Ms
Jones says.
In a case the commissioner dealt with a multiplier
of a factor of 60 was overlooked for a period of 14 months,
resulting in a back bill for $16,451.35. (Details attached)
In this case the company was not able to recover the disputed
balance because the commissioner found that the customer did
not know about the multiplier and could not be expected to
have known that a multiplier should have been applied to their
bill.
If a customer finds a problem with their
bill they should always contact their electricity company
first. If their complaint cannot be resolved by the company
through its in-house complaints service within 20 working
days, the customer can take up the complaint with the office
of the Electricity Complaints Commissioner. If the matter
is outside the commissioner's jurisdiction and the electricity
company will not agree to extend that jurisdiction, the customer
can proceed through the court.
ENDS
For more information or for electronic
images of Judi Jones please contact:
Josie Vidal
Communications/Publicity Officer
Electricity Complaints Commission.
Tel (04) 914-4526 Mobile 0274 757 305
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