Power Board unreasonable not to verify power-user’s explanation for unpaid invoice

Other
Legislation:
Ombudsmen Act 1975
Legislation display text:
Ombudsmen Act 1975
Agency:
Power Board
Ombudsman:
Sir John Robertson
Case number(s):
W25670
Issue date:
Format:
HTML, PDF, Word
Language:
English

Disputed electricity account—whether complainant resident at premises in question

The complainant advised she received an account for power used at a specified address during the period January-July 1989. She stated that she did not live at the property during that time, and listed her places of residence. She had earlier written to the Power Board disputing liability on these grounds, but in reply was told that the landlord had confirmed the Board’s records showing her to be a tenant at the time in question. The Board then forwarded the account to debt collectors.

The Ombudsman’s investigation revealed that the Power Board had no formal contracts with householders, but relied on resident’s advice of when they were moving in or out. In this case the Board had had no direct contact with the complainant, and was relying solely on the information provided by the landlord. No efforts had been made by the Board to verify the complainant’s explanation, but while the Ombudsman was unable to carry out exhaustive checks those organisations he contacted confirmed the residential chronology she gave.

The Ombudsman accepted the submission that the Board’s approach was a practical one in the first instance, but in his view if the Board chooses to adopt informal procedures it has a duty to endeavour to confirm a ‘consumer’s’ story if a dispute arises. In the Ombudsman’s view the Board should have taken all reasonable steps to clarify the circumstances before deciding whether recovery action was warranted.

Therefore the complaint was sustained and the Ombudsman made the recommendation that the account be withdrawn from the collection agency, and that the Board make further enquiries before deciding whether further action was appropriate. The Board accepted these findings and recommendation, and apologised to the complainant for the inconvenience suffered.

Comment

Power Boards no longer exist, however many aspects of power transmission, generation and retail remain under government ownership as State Owned Enterprises.

This case note is published under the authority of the Ombudsmen Rules 1989 opens page in this tab. It sets out an Ombudsman’s view on the facts of a particular case. It should not be taken as establishing any legal precedent that would bind an Ombudsman in future.

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