The Essential Services Commission has written to the Energy and Water Ombudsman of Victoria about Greater Western Water’s failure to issue some customers with quarterly bills following the IT upgrade of their billing platform.
The letter clarifies the commission’s position on Greater Western Water’s proposed billing arrangements, with regard to the backbilling provisions in the Water Industry Standard – Urban Customer Service.
Clause 6.7 of the Water Industry Standard – Urban Customer Service is about the adjustment of bills when a water business has undercharged a customer—whether through an incorrectly issued bill, or a bill that is issued late, or not issued at all.
It provides for a four-month limit on backbilling, which is designed to:
Promote accurate billing and timely communication by water businesses.
Protect customers from bill shock, which is when a customer receives an unexpectedly large bill.
The full letter sent from Gerard Brody, Essential Services Commission Chairperson, to Catherine Wolthuizen, Chief Executive Officer Energy and Water Ombudsman of Victoria, is below.
Greater Western Water: delayed billing
Dear Catherine,
I refer to the discussions between the Essential Services Commission and Greater Western Water in relation to Greater Western Water’s failure to issue some customers with quarterly bills following the IT upgrade of their billing platform.
Greater Western Water has notified the commission that 84627 customers are yet to receive bills for Q4 2023-4, for water usage dating back as far as 14 February 2024.
Clause 6.7 of the commission’s Water Industry Standard – Urban Customer Service provides Victorian water businesses a four-month backbilling limit. The four-month backbilling limit applies to all undercharged amounts—whether an incorrectly issued bill, or a bill that is issued late, or not issued at all.
In the case of a bill that has been issued late or not issued at all, the four-month backbilling limit commences from the time the customer was notified that undercharging had occurred including notification that a bill would be delayed.
The commission notes that actions were undertaken by Greater Western Water in August 2024 to inform customers that bills would be delayed. On this basis the commission proposes to take no action in relation to Greater Western Water billing customers whose bills have been delayed, provided those bills do not seek to recover water usage, recycled water and sewerage disposal charges prior to 1 April 2024.
Greater Western Water has committed to not recover unbilled water usage, recycled water and sewerage disposal charges for February and March 2024. As a result, Greater Western Water will not recover approximately $18.6 million of revenue from affected customers.
The commission understands Greater Western Water will issue consolidated bills to affected customers covering both Q4 2023-24 and Q1 2024-25. These consolidated bills will be issued by Greater Western Water before 31 October 2024.
When customers receive these consolidated bills, they may see information in relation to usage that covers the whole period since their last issued bill.
Although these consolidated bills may include information regarding usage that dates back further than April 2024, the amount owing will be prorated for the appropriate period and affected customers will only pay water usage, recycled water and sewerage disposal charges that relate to a period from 1 April 2024. The bill will also separately itemise the charges that relate to each quarter.
Affected customers will be given four months from the date of issue to pay the bill.
Affected customers can request additional help from Greater Western Water, including payment options such as flexible payment plans. There is more information about available customer supports in Greater Western Water’s Customer Support Policy.
Greater Western Water has also committed to strengthening the supports available to customers experiencing vulnerability, including by increasing its program funding for customers who request hardship support and providing a $50 rebate to customers who hold an eligible concession card.
The commission is considering whether it needs to undertake further work with water businesses in relation to clarifying the operation of the limits of backbilling, or issue further guidance to the industry on the billing requirements set out in the Water Industry Standards. I will keep you informed of any further action by the commission in this regard.
