Contact Energy’s Removal Of Disconnection Fees A Welcome Step

Energy hardship advocates have welcomed the decision by Contact Energy to stop charging fees for disconnection and reconnection in cases of non-payment.

“We are delighted that Contact Energy has ended the practice of charging disconnection and reconnection fees in cases of non-payment. This is a compassionate step that will make a tangible difference to thousands of people,” said Kate Day, Co-Director of Common Grace Aotearoa.

In July, Common Grace Aotearoa published new research which found that disconnection fees exacerbate harm, push people further into debt, and even lengthen the time people spend without power while they scramble to get money together.

“Contact Energy’s step is a recognition that these fees are not helpful. We applaud them for doing the right thing by removing these fees,” said Kate Day. 

Contact Energy now joins Toast Electric and Nau Mai Rā as companies that do not charge fees for disconnection or reconnection in cases of non-payment.

“We encourage other companies to follow their leadership.”

“We will continue to call on the Electricity Authority to ban these fees. We will also call on the sector to envision and work towards a future where everyone can access electricity and no one gets disconnected because they cannot afford to pay.”

Common Grace Aotearoa’s research, Electricity Disconnection fees: Unclear, unkind and unreasonable, can be downloaded at everyoneconnectednz.com.

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