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Mercury Energy says it has seen a significant drop in the number of customer disconnections after tightening up its processes for dealing with vulnerable customers, but will not reveal what the numbers are.
Mercury announced in June that customers facing power disconnection would receive a personal phone call
to check whether there were medical or hardship reasons not to cut off the electricity.
The change was one of a number of new initiatives introduced in the wake of the death of South Auckland woman Folole Muliaga, who died in May three hours after the power to her home was cut, leaving the oxygen machine she relied on inoperable.
Mercury Energy, a subsidiary of state-owned Mighty River Power, ordered the power cut because of an overdue power bill of $168.40.
The family have maintained the contractor who cut the power saw the oxygen machine but ignored pleas from the family not to switch the power off.
Yesterday was the first day Mercury resumed last resort disconnections after a six week review of its systems and the introduction of the new safeguards required by Electricity Commission guidelines.
Mighty River Power chief executive Doug Heffernan said the company had already experienced a drop in the number of customer disconnections for non bill payment.
Dr Heffernan would not reveal any figures showing what the drop was but said the real test of the guidelines would be what the trend would be across the country in three to six months.
"Early indications are that we are seeing a significant drop in the number of disconnections, which is encouraging.
"However, it will take more time before the Electricity Commission can determine whether the new guidelines have led to a sustained reduction across the country."
Dr Heffernan said he was confident there would be a continued drop in customer disconnections over the long-term.
"It's not about today, it's about those people who are now saying they are prepared to talk to budget agencies about payment plans."
Mercury Energy had introduced a wide range of improvements to its credit management process, including new early warning and customer contact procedures, social agency referral for hardship cases and more flexible payment plans, he said.
"The effect of the changes is that customers now have more opportunities and ways to pay their bills."
Dr Heffernan said after several weeks of testing to ensure the new systems were working as designed, Mercury Energy was confident it could fully implement its new credit management process, including disconnection as a last resort.
"What I have realised through this is that there are a lot of people who need help to organise their family finances."
Dr Heffernan said Mercury Energy was satisfied the new checks and balances were working, which had led to the decision to resume the full credit processes yesterday.
He said there had been a significant response from customers who had registered as medically dependent on electricity.
The public campaign by the electricity industry had made more customers aware of this service which guaranteed that where they made retailers aware of a medical dependency they would be protected from disconnection, he said.
Mercury Energy had already completed a direct mail drop to customers before the public campaign to raise the awareness of customers with a medical dependency, he said.
"From a business point of view these changes are a positive thing."
Dr Heffernan said he was not looking for praise from Prime Minister Helen Clark, who has been critical of Mercury Energy's practices.
"It's about building trust with our customers."
He was not concerned about Mercury Energy taking on more of a social agency role.
"If we can find ways to help customers pay their bills, then it's of benefit to us and to those customers."
- NZPA
