11 June 2007

New guidelines for electricity disconnections

Electricity retailers are to be subject to new guidelines for dealing with consumers who have difficulty paying their bills and who face possible disconnection, Prime Minister Helen Clark said today.

"The Electricity Commission is preparing strengthened guidelines, and establishing a monitoring regime to ensure power companies implement them," Helen Clark said.

"The strengthened guidelines will make it clear that electricity retailers must:

 advise consumers who may have difficulty paying their bills of assistance available from government agencies and community service providers;
 take steps to identify vulnerable consumers who are having difficulty paying their bill, and consult with the Ministry of Social Development before disconnecting any vulnerable consumer. At no time during this process can a retailer disconnect a vulnerable consumer; and
 identify those consumers reliant on electricity for medical equipment to maintain life, and not disconnect these consumers.

"The Electricity Commission will spend a month consulting with affected organisations about the impact of the changes, and electricity retailers will then have three months to introduce new procedures and start complying with the new guidelines.

"Three months after the new guidelines have been introduced, the Electricity Commission will undertake a monitoring exercise to assess compliance with them. The Commission will report to Cabinet by the end of February 2008 on the outcome of the monitoring exercise and with a further assessment of whether mandatory regulation is required.

"The Electricity Commission has indicated that it will recommend rules or regulations if there is unsatisfactory commitment from electricity retailers.

"The government will introduce amendments to the Electricity Act this year enabling it to regulate in future, should retailer compliance with the guidelines be unsatisfactory.

"The definition of vulnerable consumer in the guidelines to be consulted on will be one who, if for reasons of age, health or disability, disconnection of electricity presents a clear threat to their health or wellbeing, or a member of their household's health or wellbeing.

"These changes will require all electricity retailers to observe a sense of social responsibility with respect to consumers in financial difficulty. It is particularly important that electricity retailers have a clear idea of the government's and the public's expectations during winter this year," Helen Clark said.

ENDS

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