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Utility Bill Shock

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8 February, 2017

Utilities are some of the consistently highest and all too frequent costs for families throughout the year.

Every 3 months you can expect to receive bills for water and energy use. But what if they don’t arrive? Sounds great until the sum of the unpaid bills arrive expecting you to pay an enormous amount within a relatively short time.

It does happen and our Financial Counsellors have recently been dealing with this particular scenario a little more than usual. Maybe it’s the weather. We certainly have been through a lot this summer in South Australia and with more extremes on the way many will be looking for solutions in keeping energy costs down without being too uncomfortable. The last thing we need is for an accumulated bill to arrive just when its all over.

If for some reason and no fault of your own making you receive a group of over due bills with little time to pay. What can you do?

It is not uncommon for a supplier to experience a delay in issuing your bill and if not noticed these can lead to a sudden shock when the bills finally arrive. If you do not receive bills when expected you may need to check the supplier has your correct e-mail and address on their accounts. If your retailer has failed to issue bills for a number of billing periods, and it has been confirmed that an issue on the retailers end such as a computer error causes the delay, there are regulations in place to protect consumers.

If you have not received a bill when you expect to, then you should contact your retailer and confirm that your correct mail or e-mail address is on file. If a retailer has failed to issue bills through a fault of their own, then when they do issue a bill they can only charge you back 9 months (or 12 months for water) from the date they advise you of the undercharged (up until now un-billed) amount. The retailer must also provide the customer with the same length of time to pay off the bill as they are billing for.

As an example: Mr P has not received a bill from his electricity retailer for 18 months. His retailer corrects the error and issues Mr P bill spanning the past 18 months. These bills should include credits to cover the oldest 9 months of charges (this would be 6 months for a water bill), and the retailer must also provide Mr P with 9 months to pay off these charges.

Tip: Some people choose to make monthly payments rather than receive quarterly bills with their retailer. This is a good way to smooth out payments over the period and if linked directly to your account can help reduce a fluctuating bank account or going into debt each quarter.

For more information contact your retailer or go to the Energy & Water Ombudsman SA website. If you are experiencing financial hardship then speak to a Financial Counsellor by phoning the National Debt Helpline on 1800 007 007.

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- In Winter: Seal draughts by closing windows and curtains. Set central heating to 18°C.

- Lighting: Switch to energy-efficient LED lights and turn them off when not in use.

- Standby Power: Switch off appliances at the wall to eliminate standby power usage.

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- Ensure adequate space around your fridge for ventilation and check that its seals close firmly.

- Cover pots and pans when cooking to retain heat and reduce energy use.

- Only run the dishwasher when it’s full.

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- Install low-flow showerheads to reduce hot water usage and aim for showers no longer than four minutes.

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