The Sumo Fines: Important lesson for all electricity sellers
The recent fines issued to Sumo Power by the Essential Services Commission of Victoria (not to mention the negative PR they received) should serve as a warning and reminder to all electricity retailers, not just in Victoria, about the most cost-effective way of dealing with customers who are struggling with their electricity bills. Electricity retailers are acutely aware of the hardship provisions in legislation and their own requirements for the drafting and adherence to their own hardship schemes and policies. The most cost-effective strategy for any electricity retailer is to identify hardship customers quickly, move such customers to a hardship scheme and establish payment plans as soon as practicable. Whilst disconnection should always be a ‘last resort’ there are times when disconnection would be justifiable and commercially pragmatic, providing the…
