Energy Australia - s.87B undertaking

Energy Australia is a New South Wales State-Owned corporation established under the State Owned Corporations Act 1989 (NSW). The Commission received complaints from a customer of Energy Australia to the effect that the electricity supplied by Energy Australia to his home and to that of his neighbours has been defective. The Commission formed the view that Energy Australia made representations to the complainant that were misleading or deceptive, or likely to mislead or deceive as to the availability of rights and remedies under the Trade Practices Act for the supply of electricity on terms that may have breached the conditions and warranties implied by the Act. On raising its concerns with Energy Australia in relation to this matter, Energy Australia formally undertook to increase customer awareness by writing to each of its customers during December 1998, informing them of Energy Australias Guaranteed Customer Service Standards, describing the role of the Energy Industry Ombudsman, and informing consumers of their rights under the implied warranty provisions of the Act. In addition, Energy Australia will review past claims made by its customers for compensation arising out of defects in electricity supplied on or after March 1 1996, in accordance with the Australian Standard for Complaints Handling AS4269-1995. Once the review has been conducted, Energy Australia will inform each of its customers of this process, and will specifically advise the relevant complainants of the outcome of the review. Any claims subsequently rejected after the review will be referred for independent review by the New South wales Energy Industry Ombudsman or a member of a panel appointed by LEADR. Where Energy Australia accepts a customer claim, it will offer monetary compensation. Specific criteria exist for the assessment of compensation. Should any disputes arise in relation to compensation, Energy Australia will automatically refer the matter to LEADR for determination. Energy Australia has undertaken to report to the Commission on the progress of its reviews of past claims within 6 months of the date of this undertaking. Energy Australia will also review its complaints handling process and revise it in accordance with AS4269-1995, as well as its Trade Practices Compliance Program, in accordance with AS3806-1998.