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Home / New Zealand

Mercury puts changes in place to prevent power-cut tragedies

Stuart Dye
By Stuart Dye, Stuart Dye and Nzpa
Head of Print Content·
25 Jun, 2007 05:00 PM3 mins to read

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Do Mercury Energy's changes go far enough to prevent future tragedies? Send us your views

KEY POINTS:

Mercury Energy customers facing their power being cut off will receive a personal phone call to check whether there are medical or hardship reasons not to disconnect.

The change - effective today - is one of several initiatives introduced in the wake of the death of South Auckland
woman Folole Muliaga 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.

Mighty River Power chief executive Doug Heffernan has announced initiatives designed to prevent similar tragedies.

"We made a commitment that we would learn from the Muliaga tragedy and take quick action to improve our credit management systems," he said.

"This has been our top priority and we are confident our new procedures will do our part to prevent another similar tragedy occurring in the future."

The changes, however, are unlikely to prevent the company facing a compensation claim over Mrs Muliaga's death.

And the lawyer for the Muliaga family believes the case has been strengthened by a medical admission that cutting the oxygen supply contributed to Mrs Muliaga's death.

Middlemore Hospital respiratory specialist Dr Jeff Garrett said the loss of oxygen probably contributed to an increase in pressure in the vessels in Mrs Muliaga's lungs.

" ... and the back pressure effect of that probably put her into irreversible rhythm disturbance and irreversible heart failure."

Family lawyer Olinda Woodroffe said Dr Garrett's comments were the first evidence from a medical practitioner that switching off the oxygen machine was a contributing factor in the death.

"That evidence [from Dr Garrett] strengthens the position we've taken from the start."

A new way of doing business

* Letters will be sent to customers advising they can register a medical dependency or financial hardship.

* Overdue bills and credit letters will be redesigned to include information on the steps to avoid disconnection.

* A personal phone call will be made to customers with overdue accounts in the week before disconnection is scheduled.

* New disconnection guidelines for contractors, with an explicit instruction not to disconnect where any doubt exists in relation to medical dependency or financial hardship.

* Call centre staff have been instructed to seek more detail of medical or hardship situations when people call, regardless of whether they are the account holders.

* Introduction of more flexible payment and part-payment options, in conjunction with social agencies, on overdue power bills.

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