Times are tough in the energy sector. But who knew just how tough?
Energy utility AGL has been fined at least twice this year for billing misconduct: in May, for failing to pass on energy rebates to Queensland pensioners, and earlier this month for overcharging up to 60,000 customers through a “billing error”. But recent events suggest AGL may have taken “creative accounting” to a new plane.
Here’s the scenario I’m imagining. The AGL marketing department is brainstorming, and the boss exhorts his charges to “think outside the (fuse) box”.
“Guys, this global warming thing is killing us. People are switching off their lights, turning their heating down a degree or two. Can anyone identify any new revenue opportunities? C’mon guys, no idea is too wild or crazy!”
Suddenly, one young marketing hot-shot’s eyes glaze over and, looking into the middle distance, he speaks: “I see… dead people.”
Fanciful, perhaps, but however it happened, AGL appears to have begun to charge customers extra for being dead.
Bereaved relatives notifying the utility of the death of a loved one have found themselves being billed — and chased for — a significant financial penalty because the dearly departed broke some kind of contract.
Following the death of one of my own relatives more than five years ago, the home — and the energy account — remained in her name and the bills were paid by her next of kin. But late last year, when a relative phoned AGL to notify it of a change of name on the (continuing) account at that address, that call appears to have set some wheels in motion.
Although no invoice was ever received, in June this year a letter arrived from a debt collector — addressed to the deceased — referring to “previous correspondence” and demanding $74.13 plus “costs in the sum of $49.50”, but giving no other explanation.
A call to the debt collector revealed only that this was some kind of “early termination fee”. This seemed highly improbable, given that the deceased’s arrangements were in the form of a classic “evergreen” account, dating back many years and certainly with no fixed term.
Even had some kind of contract been in place, a $75 early termination fee seems hard to justify, unless the customer had been given a substantial sweetener to sign up. The Essential Services Commission in Victoria determined in 2006 that the amount of an ETF for a single energy account should be no more than $20 in administrative and hedge book costs plus the unamortised portion of any inducement received by the customer.
In the case of my relative, patient explanations and requests for a copy of the bill or supposed “contract” were initially acceded to, but no documents arrived. The phone calls from the debt collector’s call centre – still asking to speak to the deceased — simply continued. And, having been told yet again that the person was dead, one caller bluntly asked to be sent a copy of the death certificate! A call centre supervisor said that “because of the Privacy Act” she couldn’t deal with anyone else — even the executor of the estate — unless a death certificate was provided.
But apparently this isn’t an isolated case. Last week, The Age carried a letter from another consumer reporting an almost identical experience:
When advised that an account holder was deceased, AGL charged a fee for early cancellation of contract! Despite the original phone call… an email and several letters, AGL has continued to harass with the threat of further action. The distress this has caused cannot be expressed.
A staff member at the Energy and Water Ombudsman (Victoria) last week sighed audibly when she heard the story and agreed that “Yes, we’ve had a number like that”.
Consumers might be appalled but you have to agree that, as a revenue-raiser, AGL might really be onto something here.
Stephen Downes lectures in the postgraduate advertising program at RMIT University and is a market researcher with QBrand Consulting
It must be something to do with gas supply companies in general (breathing in their own products?). I have heating supplied by bottled gas at my beach house on the NSW south coast. For nine years, when they ran out I would simply call the local supplier and they would swap them and send me a bill. Last year Elgas took over and I received a bill for annual “maintenance” of my gas bottles. This is akin to receiving a bill from my local garage for maintenance of my barbecue gas bottle. I had never paid for maintenance before and I had absolutely no contract with or commitment to these people. I threw the bill away and a few weeks later received a final demand which I also ignored. I then received a letter from a collection agency. I’d had enough by now and replied to Elgas telling them in no uncertain terms that I had no intention of paying and sent copies to my state and federal MPs. Not surprisingly that was the end of their demands. But I wonder how many people saw the official looking invoice and just paid up?
Thank you for your article. I changed to AGL a few months ago, so I will be more alert. I was with Simple energy, & the last straw was a debt collectors letter, claiming $42, [which had been paid] & was actually my pensioner’s discount, which they had never applied, despite being notified several times.
My husband died 16 years ago, & I had to provide copies of his death certificate, to absolutely every-one
even the TAB, to access the few dollars there ! [the power co. was still sending bills in his name 2 years later ],
regards,
Lilian
AGL is pathetic when it comes to billing. It supplies gas and electricity at my place and I reckon for two years at least there’s been constant billing problems. Bills don’t arrive, then an ‘overdue, pay up now’ demand is sent. Or a massive bill for longer than the standard timeframe turns up, with a short payment timeframe, along with an apologetic ‘our customers deserve better’ letter… but the system evidently never changes because the apology letters have arrived several times. Woeful.
This is not a new thing. My dad died in 2003 and my mother went downhill immediately. She ended up in hospital and then in a nursing home. We received a bill from AGL for a 3 month period when no-one had lived in the house.
When I phoned to explain things I expected maybe a bit of sympathy (dopey me!) instead I got a very rude person who refused to back down. In the end I told our solicitor to pay it so the estate could be finalised.