Then it comes to choosing an electricity supply company (and there are more choices now than ever before) there's more than just price to consider. You should also look at the company's customer contract to check that your legitimate rights and interests are being met. This section contains information on what to look for in customer contracts. There is also information on Consumer PowerSwitch, a cost comparison service, and using the Electricity and Gas Complaints Commission.

From 8 July 2003 The Consumer Guarantees Act applies to electricity, and to services relating to the supply of electricity – including services supplied by, or on behalf of your lines company.

Your electricity supply must be of acceptable quality, and services relating to the supply of electricity must be performed with reasonable skill and care. You are entitled to a remedy where the electricity, or the services fail to meet the guarantees under this Act. For more information on these guarantees see:

Faulty Goods
Faulty Services

Consumer contracts

Every electricity supply company has some sort of contract with its customers, which sets out your rights, and the responsibilities of the company in a number of situations.

You may not be able to negotiate the content of the contract individually with the company, but you do have the right to view the contract before deciding to join that company.

Here's what to look out for in a good customer contract:

Limitation of liability

From 8 July 2003 an electricity company can limit its liability to you for breaking the Act only if you are using the electricity for the purposes of a business. Any supply for personal, domestic or household use is covered by the Consumer Guarantees Act, and a supplier cannot contract, or opt out of the guarantees contained in this Act.

If the company fails to use skill and care (eg, unreasonable delays fixing a faulty transformer that later explodes and damages the wiring of your house) then you should not be expected to bear the cost of any loss caused by this. So, a good customer contract should not limit or exclude liability for breaking the Act.

Check the contract to see if the company limits its liability to a maximum amount – eg, $5,000. If this is the case, then you may only be able to seek up to that limit for damage caused.

Also check if the contract limits the type of loss to physical damage only. If it does then if, for example, a problem arises where you are unable to live in your home until everything is fixed, you may not be able to claim accommodation costs.

Disconnection procedures

At a minimum, the good customer contract should allow for disconnection only after:

providing at least seven day's notice of the intention to disconnect
providing at least three days for the receipt of notices
the company has tried to give a final warning 24 hours before disconnection
looking at payment options for customers experiencing genuine hardship.

The company should not disconnect customers who have made a payment arrangement and the conditions of this arrangement are being met.

Also check that the contract is specific about when the company can disconnect. A company should only disconnect for overdue bills associated with supplying electricity to you. If this is not stated in the contract, then the company could, for example, disconnect your electricity if you are behind with hire purchase payments to that company for a fridge.

Deposits (bonds)

If a bond is required, you should know right from the beginning exactly how much it is. If the contract does not state the amount of the deposit, or refer to a document that states the amount, then you cannot compare the costs of joining one company over another.

Consultation and notice

A good customer contract should provide you with the right to be consulted on the matters that affect your rights and responsibilities BEFORE a company makes changes to any of the contract terms (eg, rewriting the liability clause).

Check the contract to make sure that there is provision for consultation and that you have a right to give feedback regarding a draft contract.

Meters

Check the contract to see if your company will charge you for any unrecorded electricity used due to a fault in the meter. A good customer contract should state you will not be responsible for any unrecorded electricity due to inaccurate recording of the meter.

Dispute resolution

The contract should outline, in a separate section or publication/notice, a clearly defined process to resolve a dispute. This reduces the costs to both parties when a dispute arises.

The disputes resolution procedure should:

include a system which records, monitors and tracks your complaint
allow for freezing only the amount under dispute. You should not have to pay for debt collection costs relating to the amount under dispute
require the company to make every reasonable effort to respond to a complaint within five working days:
If you are not satisfied with the company's initial response, a further five days should be allowed to try and resolve the problem with a nominated company manager
If the dispute takes longer than the standard time then you should be informed in writing of the reason for the delay
If the dispute is not resolved within the revised time limit, then you should be advised of your options for redress
require that unresolved disputes are dealt with by a qualified independent arbitrator selected by both parties and paid for by the company
allow you or the company the option of referring the matter to a Disputes Tribunal or Court
require that all amounts related to the dispute be paid within 14 days of the date of resolution, or within a period agreed between the parties.

Who is responsible for what?

The contract should explicitly state who is responsible for problems with lines, meters, control equipment and transformers, where applicable – that way it's clear who is responsible if a problem arises.

Consumer PowerSwitch

Consumer PowerSwitch is an online service that allows you to compare prices for electricity supplied in your area. Even if you don't want to switch companies, you can compare your plan against other plans offered by your current electricity provider.

This service is funded by government and supplied by the Consumers' Institute. The service is free.

Electricity and Gas Complaints Commission

The Electricity and Gas Complaints Commission is a one-stop-shop for dealing with problems you may have with your electricity lines or retail companies. The Commission can give you independent advice and help resolve disputes over line disconnection, incorrect billing, or difficulties that may arise when switching electricity companies. It can only investigate complaints that have occurred since 1 October 2001, and can' address objections to the price of electricity or services.

A Code of Practice has been developed that electricity lines and retail companies are encouraged to sign. This code outlines some minimum standards the companies are required to adhere to, providing more protection for you, the consumer. The code of 'good behaviour' includes the way in which consumer complaints are to be handled, and the requirement that electricity is disconnected only as a last resort.

The Commission is completely independent of the electricity industry and its service is free to consumers. Electricity and Gas Complaints Commissioner Judi Jones says sometimes consumers get stuck dealing with a company's call centre. The Commission is able to go to a higher level within an electricity company to sort out a problem relatively quickly.

How do you make a complaint?

If you have a problem with your electricity retail or lines company you need to make a formal complaint with them first, by phoning or writing to them. You must give them the opportunity to solve the problem.
If you are not satisfied with the outcome of working through your company's complaints procedure, you can contact the Electricity and Gas Complaints Commissioner.

To contact the Commissioner

Email: info@egcomplaints.co.nz

Freephone: 0800 22 33 40

Freefax: 0800 22 33 47

Freepost: 192682
Electricity and Gas Complaints Commission
PO Box 6144
Wellington.

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