Guidance note 4 (2020): Contacting customers eligible for tailored assistance: clause 80(2) (no longer in force)

This guidance note is no longer in force. From 24 July 2024, energy retailers and exempt electricity sellers can refer to the payment difficulty framework guideline for assistance in meeting their obligations under the payment difficulty framework.

This guidance was published prior to the Energy Retail Code becoming a code of practice under Part 6 of the the Essential Services Commission Act 2001. The obligations that are the subject of this guidance note (previously located in clause 80 of the Energy Retail Code) can be found in clause 129 of the Energy Retail Code of Practice.

Guidance

An energy retail industry pulse check was issued to retailers on 4 May 2020 to understand the practices retailers have in place to support customers experiencing payment difficulties and family violence in line with protections in the Energy Retail Code.

In their responses to the pulse check, retailers provided a variety of reasons for why they may not have contacted a customer despite the requirement in clause 80(2). A key issue was the question "When does a retailer need to contact a customer to give them tailored assistance information?"

Having regard to the variety of approaches by retailers, we considered the requirements of clauses 80(1) and (2) and provides the following guidance.

Clauses 80(1) and (2) provide:

Information about assistance available

(1)          A residential customer who has not paid a bill by its pay-by date and who contacts the retailer is entitled to be given by the retailer information about the assistance to which the customer is entitled under this Division and how to access it.

(2)          A residential customer who has not paid a bill by its pay-by date and who has arrears of more than $55 (inclusive of GST) is entitled to be contacted by the retailer, within 21 business days after that pay-by date, and given information about the assistance to which the customer is entitled under this Division and how to access it.

The pulse check found some retailers may not give eligible customers tailored assistance information if customers accessed assistance other than tailored assistance within the 21 business day timeframe. Further, some retailers may not contact eligible customers if they have previously contacted the customers and given them the information. These retailers also cited customer complaints about repeat reminder notices as a reason for not providing the customers with information each time they miss a bill. Guidance on these two issues is provided below.

The need to give a customer information about assistance they are entitled to so that the customer can make an informed decision when choosing assistance

A customer, who missed the pay-by date of their bill, does not waive their entitlement under clause 80(2) to receive tailored assistance information by accessing other forms of assistance within the 21 business day timeframe, and the retailer is obliged to provide the tailored assistance information within 21 business days from that pay-by date.

The following examples work through different scenarios where the customer accesses standard assistance to defer the pay-by date.

Example scenario 1 

• A customer received a bill of $60.
• After payment is due, the retailer contacts the customer by phone and only discusses standard assistance options.
• The customer chooses to extend the pay-by date by one billing cycle.

In this scenario, although the pay-by date is amended to a later date, the retailer did not discharge its obligation under clause 80(2) in relation to the original pay-by date.

Example scenario 2

• A customer received a bill of $60.
• Before payment is due, the retailer provided the customer with standard assistance options and the customer notifies the retailer of their choice to extend the pay-by date by one billing cycle.
• The retailer does not mention the customer’s entitlements to tailored assistance.

In this scenario, the retailer has amended the pay-by date to a later date and the retailer’s obligation in clause 80(2) is not triggered unless the customer misses the new pay-by date.

Example scenario 3

• A customer received a bill of $60.
• Before payment is due, the retailer provided the customer with standard assistance options.
• After payment is due, the eligible customer contacts the retailer, without having received a reminder notice containing tailored assistance information, and notifies the retailer of their choice to extend the pay-by date by one billing cycle.
• The retailer does not mention the customer’s entitlement to tailored assistance and cancels the reminder notice (containing tailored assistance information) for the original pay-by date.

In this scenario, the retailer did not discharge its obligation under clauses 80(1) or 80(2).

The need to offer assistance to an eligible customer, even if they have been offered assistance before

A retailer must contact a customer and give them information about tailored assistance each time the pay-by date is missed, and the customer has arrears of more than $55 (inclusive of GST).

A retailer may elect to provide the information separately to a reminder notice.**