Are we still liable to pay for electricity meters not read during a 9-month period?

Services
1

Hi everyone,

My wife and I have joined SimplyEnergy (SE) in Mar 2016 and in spite of some initial teething issue with the set up of automatic direct debit, have been paying our electricity bills since then. In early Jan 2017, we received a series of new invoices which showed added charges for the Mar-Dec 2016 period because 1 of the 5 meters in our meter box had not been read by whoever does the reading of the meter boxes during that time (apparently some third party contractor).

My questions are as follows:

  1. In spite of the fact that it was the fault of SE and\or the party in charge of reading meters, can SE still legally invoice us for the meter which was not read for the Mar-Dec 2016 period?
  2. On what legal basis can SE still charge us - or not - for the meter which was not read during the Mar-Dec 2016 period?

Thank you in advance.
Michael

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Hi @M_J

To start with Michael I suggest you read your contract. If you don’t have a copy, ask SE for one. I would also suggest that in future you monitor your electricity bill more closely to ensure the charges are correct. They could have been overcharging you just as easily as they were undercharging.

The legal basis is that you have a contract with SE to pay for the electricity you consume. Therefore you are legally obliged to pay for the electricity. I very much doubt if in your contract there is a requirement for them to charge you in any specific time frame. If there isn’t, you have to pay.

In summary, unless you can find anything in your contract to the contrary, you are legally obliged to pay.

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Hi @meltam,

Thank you so much for the prompt response.

I do have a copy of the contract but I could not locate any sub-sections referring to SE granted itself the permission to retrospectively charge us for unread meter readings by SE or a third-party, for errors\omissions\etc by SE or third-party personnel, etc.

In my limited understanding of Australian Consumer Law, I thought that a provider could not retrospectively charge a consumer for electricity provided in a specific period if:

  • the provider failed to read the meter properly during that period;
  • the consumer had already paid the invoice in full for the electricity charged during that period;

As things stand now, SE is trying to force us to pay for the electricity consumed for one of the meters they failed to read during a 9-month period … and my argument to SE is that it was a mistake of their part (or a mistake of the third-party sub-contractor who failed to read the meter over a 9-month period) and we should not have to pay for their mistake.

I am therefore seeking the relevant part(s) of Australian Consumer Law that support my argument that SE should not be forcing us to pay for their mistake.

Any assistance in that respect would be greatly appreciated. Alternatively, I would also appreciate anyone else’s input into this discussion as to the best approach to adopt to handle SE.

Many thanks in advance.
Michael

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Hi Michael

According to the Australian Consumer Law, (http://consumerlaw.gov.au/consumer-policy-in-australia/resources/an-introduction-to-the-australian-consumer-law/#fn-545-8)
“Every jurisdiction also has a wide range of sector-specific consumer protection laws, designed to address the needs of individual economic sectors, extending from the regulation of hairdressers to electricity retailing”.

Here is what I found at the Australian Energy Market Commission’s website (http://www.aemc.gov.au/Australias-Energy-Market/Markets-Overview/Retail-energy-market)

"Elements of energy retail markets - such as those relating to metering, customer transfers (when a customer switches retailer) and balancing and reconciliation - are contained within the National Electricity Rules and the National Gas Rules. Energy-specific consumer protections are contained in the National Energy Retail Law and Rules.

The National Energy Retail Law and Rules governs the sale and supply of electricity and natural gas to retail customers and applies to both the National Electricity Market and to natural gas markets. They cover:
. the relationship between retailers and their customers, including obligations to make offers, minimum contract terms and consent requirements for entry into contracts
. the relationship between distributors and customers, including standard contract terms
. retailer authorisations (licences) to sell electricity and/or natural gas to customers
. retailer of last resort arrangements

The framework consists of the National Energy Retail Law, the National Energy Retail Regulations and the National Energy Retail Rules. The objective of this regulatory framework is to promote the National Energy Retail Objective. The National Energy Retail Rules contain more detailed provisions regulating the rights and obligations of retailers and consumers in retailer energy markets.

The framework operates in the Australian Capital Territory, Tasmania, South Australia, New South Wales and Queensland but not in Victoria. Victoria’s energy retailer arrangements are largely contained in jurisdictional instruments. However, Victoria has adopted the electricity small customer connections framework in Chapter 5A of the National Electricity Rules.

The framework aims to promote retail competition and empower customers to negotiate energy contracts that suit their needs. It strengthens the position of customers in areas such as hardship, retailer failure, access to digestible market information, and disconnections.

The energy-specific consumer protections under the National Energy Customer Framework are intended to complement and operate alongside consumer protections in the general law. These include protections under the Australian Consumer Law and also state and territory consumer protection laws."

So, have a look at the National Electricity Rules Version 80 which can be found at

In your position, I would look at Chapter 7: Metering first, and if what you seek is not there, have a look at other chapters which may be relevant such as Chapter 5A: Electricity Connection for Retail Customers.

Hope that helps you find what you are after.

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5

Yes, if the meter was connected and electricity was used and measured by this meter.

What the retailer can do is invoice based on estimated usage…using past consumption pattern to estimate amount used in recent billing period. Some retailers allow customers to contact them with actual meter readings for invoice adjustment should there be a large discrepancy…however, discrepancies will resolve themselves at the next reading.

In relation to charging the ‘meter reading charge’, in Qld they still can as this charge is also for other meter costs…this is from Qld gov website…

Metering charges
Since 1 July 2015, electricity metering costs have not been included in electricity prices set by the QCA. Retailers are responsible for incorporating metering charges into your bill.

This is not a new cost because metering charges were previously included in network charges.

_Tariff 11’s metering charge is 8.94 cents per day _
_Tariff 31 and Tariff 33’s charge is 2.68 cents per day. _
These charges pay for the costs associated with providing meter services, such as:

_purchasing the metering equipment _
the onsite connection of a meter
works to inspect, test, maintain, repair and replace meters
quarterly or other regular reading of the meter
processing, storage, delivery and management of metering data.

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Hi @meltham6554,

Thank you ever so kindly for this wealth of information. I poured over it most of today and found a few sections which were relevant\applicable to our circumstances.

Unfortunately (for me), I have reached the conclusion that SE was within their legal obligation to charge us the electricity provided by the meter they - or a third party in charge of reading residential meters - failed to read for the Mar - Dec 2016 period.

Thank you again for all the information you provided as it was extremely helpful.

Cheers,
Michael

2 Likes
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Hi @phb,

Thank you for your response and for all the information you provided.

As mentioned in a prior post, I have reached the conclusion that SE was within their legal obligations to charge us for the electricity consumed at our residence but which they - or a third-party in charge of reading residential meters - failed to read during the Mar - Dec 2016 period.

Thank you again for your assistance.

Cheers,
Michael

1 Like