Have you ever suspected your Energy Company of gaming the rules? Consider this: A energy retailer in NSW has argued they can remain silent on an energy supply transfer and then penalise the customer with adjusted early termination fees. Small business is particularly vulnerable to this activity. Have you been affected? Speak up now.
We write this after a story recently ran that was commissioned by the St Vincent De Paul, 28 May 2014, ‘Energy Retailer not Adequately Disclosing Additional Fees’. It would seem some success has been the outcome. You may find similar matters very common for small business and the protection is less clear. It also follows that small business can be classified under the electricity rules as large when under company rule they are small business. The tactics of taking advantage of a customer is part of our story.
Consider the retailers argument: Section 6.10 AEMO rules prevent them objecting to Transfers in NSW. A wonderful twist that Tony the Weasel would be proud of for sure. What this retailer then did was objected to a ‘to the market to transfer DCL’ (Form called a CR1000) and then withdrew the objection. They then remained silent on their intention to levy the charge. In one instance we know of near $10,000 is the adjusted fee charged.
We find it difficult to think other than they are gaming the rules and defining as it suites them. They are embarking on ‘it may be immoral, but is not illegal’ game at the expense of a trust in what we say not what we do.
If you want more evidence consider that the Energy and Water Ombudsman NSW (EWON) web site is showing up to 85% increase on complaints with energy retailers in 2013, benchmarked over 2012 figures. Just imagine what 2014 must have in store for the Ombudsman.
If we go back to the reference instance – it was claimed they broke a deemed supply agreement and fees are payable. The retailer then ignored requests for transparency of the charges and to explain how is was reasonable to claim so much money. The retailer even ignored that the new retailer offered to give back the customer without penalty to any party. It became obvious the old retailer only want the money and not the customer.
What is wrong with that – big business only says show me the money! We are all nothing but an asset.
Our frustration is such that when we looked for an explanation it seems most feasible that the retailer is actually short in the market for black energy. This term is where it is not renewable or green sources. In effect a panic that they are overexposed to the renewable market because of the current government sending out signals ‘old king coal’ will reign for some time. It follows that the amount of contracted energy into the future and the books determine the risk of that business. It would seem the retailer does not want you to consume black energy, nor do they want you to export renewable energy – you might notice if had considered putting in Solar Array, either covertly or overtly you might be discouraged.
If you accept this short sell idea you could consider the behaviour of finding reason to add fees to your exit is akin to double dipping. They want you to pay for what they do not have, or they have already sold it elsewhere. Possibly this matter should go before the AER, they are quoted as saying they have an eye on these sort of things.
If you check out the AER site and the government site www.energymadeeasy.gov.au you will notice they recommend you lay a complaint with the Energy and Water Ombudsman NSW (EWON). If you do so you should definitely know your wants for any outcome.
One want we recommend you consider is consistent and effective communication is your right.
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