Electricity retailers required to provide basic protection for customers

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Stock image. Electricity retailers will be required to to provide a range of protection for consumers from the beginning of 2025.
Photo: 123RF

Electricity retailers will be required to provide basic protection for residential consumers, after the market regulator decided to mandate consumer care guidelines.

The decision by the Electricity Authority means retailers will have to provide a range of protection for consumers from the beginning of 2025.

It includes how companies deal with consumers struggling to pay bills and how they should act when considering disconnecting a customer for not paying their bills.

The guidelines also outline how retailers should care for customers that were medically dependent on electricity.

The authority said it decided to exclude a part relating to information disclosure and monitoring, which was being addressed in a separate consultation.

“We believe this decision is the best pathway forward to ensure consumers receive a consistent and supportive level of care from their electricity retailer, regardless of who they choose,” Electricity Authority chief executive Sarah Gillies said.

The decision follows its consultation from September 2023.

The authority committed to a review process engaging with various stakeholders to address any issues raised during consultation.

“The degree to which we can resolve issues raised by industry participants will largely depend on their level of engagement,” Gillies said.

“As we work to mandate the guidelines, we expect retailers to maintain or improve their alignment with the current Guidelines and we will continue monitoring and reporting on alignment to ensure protections for consumers are being upheld,” she said.

The Consumer Advocacy Council said the decision to mandate protections was “fantastic news for consumers”.

“While some retailers are voluntarily following the voluntary guidelines, others are not. This is evidenced by a second review of how retailers are adhering to the Guidelines released by the regulator today,” council chair Deborah Hart said.

“We applaud the regulator for making these moves. Electricity is an essential service which is critical to the health and wellbeing of consumers, so a set of mandatory standard conditions is absolutely vital.”

The Electricity Retailers Association said all of its members “strongly support minimum standards for consumer care”.

“ERANZ members initiated the development of the Consumer Care Guidelines a decade ago – and they all meet the current voluntary standards,” chief executive Bridget Abernethy said.

“Our members seek continual improvements to customer care and strive to deliver well beyond the minimum laid out in the guidelines.”