Suppliers get tough as families struggle

Kerry-Lee Charlton (22) and her daughter Emily Charlton-McLaren (22 months) had their power...
Kerry-Lee Charlton (22) and her daughter Emily Charlton-McLaren (22 months) had their power disconnected last week. Photo by Peter McIntosh.
Dunedin social services agencies are reporting an increase in the number of people receiving disconnection notices as families struggle to pay rising power bills during the colder winter months.

Anglican Family Care Centre director Nicola Taylor said a Dunedin solo mother with four children was recently "threatened with disconnection" if she did not increase her fixed payments from $80 to $120.

"Until now, the company had been satisfied... but now, no longer."

Clients had also been told by power company representatives that they had little choice but to get tougher with consumers because of the number of people stating their health as a reason for non-payment, she said.

Power companies had limited the use of disconnections as part of the credit process following the death of oxygen-machine reliant Folele Muliaga in 2007. Mrs Muliaga had her power cut because of an overdue bill of $168.40.

Disconnections fell to nearly 2000 in the second quarter of 2008, from nearly 12,000 in the first quarter of 2007, figures from the Electricity Commission reveal. For the first three months of this year, disconnections had risen to almost 6000 and were predicted to increase.

Presbyterian Support Otago chief executive Gillian Bremner said 80% of clients were "expecting difficulties" in meeting electricity payments due to higher than anticipated costs this winter.

"People we are working with are pretty much expecting electricity bills to double what they have budgeted for... Where do you find the money for that?"

An increasing number of people were coming to the service with disconnection notices and the agency would work with government agencies, such as Work and Income, to help provide support to those affected.

"It is reflective of the difficult economic times," she said.

Dunedin solo mother Kerry-Lee Charlton had her power disconnected a fortnight ago despite trying to make arrangements with her power company to pay her outstanding account.

Miss Charlton received a final notice for $600 from her power company after not receiving a power bill for several months.

"It was a quite distressing situation."

Illness prevented her from attending a scheduled appointment with Work and Income several days later to "sort" out her bill, and the following day a contractor arrived to switch the power off.

An offer to pay some of the outstanding amount to the power company was turned down, and the power was disconnected.

Work and Income paid the bill - totalling almost $1000, with small amounts to be deducted from her welfare payments.

"I just wished the power company listened to my attempts to pay - even if it was only a little of the amount."

Peter Dunn, of Dunedin, said he recently paid by credit card an overdue power bill of $1320 but was amazed to find a contractor at his door two days later to turn the power off.

Mr Dunn said he was not angry about the mix-up, but the fact a contractor had arrived at the house at 4.45pm on a cold winter afternoon to cut off the power - giving a customer few options to pay their outstanding bill - showed "they have no consideration for their customers".

"They have learnt nothing from the lady dying in Auckland."


THE POLICY

TrustPower: The company only disconnected in "extreme cases" and worked with social agencies to help keep customers connected, spokesman Graeme Purches said. "We never stopped doing it [disconnections], but we only do it in extreme cases."

Meridian Energy: "The difficult economic conditions have resulted in us having a greater focus in working with customers," spokeswoman Clair Shaw said. The company had not increased the number of disconnections in the past two years, but earlier this year "reconsidered this approach", with disconnections now considered on a case-by-case basis, she said.

Genesis Energy: A spokesman said the company followed Electricity Commission guidelines in dealing with low income and vulnerable customers. "Disconnecting customers is very much a last resort."

Contact Energy: The company was recording an increase in the number of disconnections but was always "willing to enter into reasonable payment arrangements with its customers", according to spokeswoman Louis Griffin. "We want to ensure our customers stay connected."

Mercury Energy: While outstanding accounts add "considerable costs to our business", it was unlikely to lead to an increase in power prices, spokeswoman Marie Hosking said. I just wished the power company listened to my attempts to pay

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