Introduction
Then it comes to choosing an electricity supply company (and there are more choices now than ever before) there's more than just price to consider. You should also look at the company's customer contract to check that your legitimate rights and interests are being met. This section contains information on what to look for in customer contracts. There is also information on Consumer PowerSwitch, a cost comparison service, and using the Electricity Complaints Commission.
From 8 July 2003 The Consumer Guarantees Act applies to electricity, and to services relating to the supply of electricity - including services supplied by, or on behalf of your lines company.
Your electricity supply must be of acceptable quality, and services relating to the supply of electricity must be performed with reasonable skill and care. You are entitled to a remedy where the electricity, or the services fail to meet the guarantees under this Act.
For more information on these guarantees see:
- Faulty Goods
- Faulty Services
Consumer contracts
Every electricity supply company has some sort of contract with its customers, which sets out your rights, and the responsibilities of the company in a number of situations.
You may not be able to negotiate the content of the contract individually with the company, but you do have the right to view the contract before deciding to join that company.
Here's what to look out for in a good customer contract:
Limitation of liability
From 8 July 2003 an electricity company can limit its liability to you for breaking the Act only if you are using the electricity for the purposes of a business. Any supply for personal, domestic or household use is covered by the Consumer Guarantees Act, and a supplier cannot contract, or opt out of the guarantees contained in this Act.
If the company fails to use skill and care (eg, unreasonable delays fixing a faulty transformer that later explodes and damages the wiring of your house) then you should not be expected to bear the cost of any loss caused by this. So, a good customer contract should not limit or exclude liability for breaking the Act.
Check the contract to see if the company limits its liability to a maximum amount - eg, $5,000. If this is the case, then you may only be able to seek up to that limit for damage caused.
Also check if the contract limits the type of loss to physical damage only. If it does then if, for example, a problem arises where you are unable to live in your home until everything is fixed, you may not be able to claim accommodation costs.
Disconnection procedures
At a minimum, the good customer contract should allow for disconnection only after:
- providing at least seven day's notice of the intention to disconnect
- providing at least three days for the receipt of notices
- the company has tried to give a final warning 24 hours before disconnection
- looking at payment options for customers experiencing genuine hardship.
The company should not disconnect customers who have made a payment arrangement and the conditions of this arrangement are being met.
Also check that the contract is specific about when the company can disconnect. A company should only disconnect for overdue bills associated with supplying electricity to you. If this is not stated in the contract, then the company could, for example, disconnect your electricity if you are behind with hire purchase payments to that company for a fridge.