Discussion Paper Summary

January 1997

An Analysis of Contracts, Metering and Disputes Procedures for Domestic Electricity Customers

The supply of electricity is a significant issue for domestic consumers and it is critical that consumers’ interests are recognised. Power companies currently have a monopoly in the domestic electricity market. The terms and conditions under which supply is offered are not able to be negotiated on an individual basis. These terms and conditions should however reflect a standard that customers could legitimately expect in a more competitive market. The objective of this study is to provide benchmarks for a good contract for the supply of electricity to domestic customers and to encourage all power companies to consider and adopt such terms and conditions. This will be achieved by analysing:

• the current terms and conditions for the supply of electricity to domestic customers by power companies
• the methods by which accurate supply is ensured and enforced on behalf of domestic customers, and
• complaints and redress mechanisms available to domestic electricity customers.

The domestic contract is the primary mechanism for setting out rights and responsibilities. While some power companies may have customer friendly policies these are subject to change, may not be effectively implemented, and are not enforceable. The domestic contract can ensure that customers rights can be recognised and enforced. It is therefore crucial that the contract strikes an efficient balance between the rights of customers and their power company.

Metering and disputes procedures are also important aspects of ensuring that the customers rights are recognised. Customers also need to have procedures which ensure that they receive an accurately metered bill and have mechanisms to enforce their rights by obtaining redress when things go wrong.

This analysis should provide power companies with some practical steps that they can take to improve contracts, metering and disputes procedures to their domestic customers.

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