Customer has debt after a change in electricity providers

Published on 09 October 2024

Alex* changed from his original electricity provider to a subsidiary provider. A subsidiary is a company owned by a primary provider but operates independently. After a couple of years, Alex was informed that the subsidiary provider was closing and the account would be transferred back to the primary provider. Alex thought nothing more of it. He was told all customer details would be moved and he didn’t have to take any action.

When Alex realised he hadn’t had a bill in a while, he contacted the provider. They discovered that incorrect contact information had been recorded for him when the account was moved across. A large debt had gathered of about $3,500. This put Alex’s family into a difficult financial position.

When Alex called the provider back a short time later, he noted that they still had the incorrect details in their system. He came to us for help.

Here’s how we helped

Since the provider had the wrong contact details, Alex received no bills or notices about payment. The power had also not been disconnected at all during this time, which would have alerted Alex of a problem.

The provider confirmed to us that it was their error.

Outcome

Recognising their error, the provider decided to waive the entire debt.

Alex had not expected the whole amount to be waived and was very grateful.

What can you do?

If you aren’t receiving regular bills from your provider, you should contact them to see what the problem is and if it can be resolved. This will help avoid going into debt with your provider. 

Read more advice on changing energy providers.

*name changed to protect privacy.