Momentum Energy agrees to compensate disconnected customers over half a million dollars

More than 800 Momentum Energy customers will be entitled to compensation after the state’s independent energy regulator found the company failed to inform customers they could be disconnected remotely.

The energy retailer switched off the power of almost 850 customers at various times between January and June 2018.

Warning notices provided to customers did not comply with the requirements of the Energy Retail Code because they did not let smart meter customers know that they could be disconnected without someone having to visit the property.

Commission energy director Sarah McDowell says Momentum Energy customers will be entitled to a combined total of $533,412.

“This is a significant figure, with some customers entitled to compensation of over $7000.

“We are taking this action to deter other energy companies from engaging in similar conduct,” she said.

Around 250 of the affected customers were without power for more than a day, while 98 customers (12 per cent) were disconnected for multiple days. Another 34 customers were disconnected for more than two weeks.
Momentum Energy has agreed to a court enforceable undertaking which requires it to make compensation payments to affected customers. It is also required to track and report to the commission on its progress in attempting to reach customers including former customers.

The company has also amended the warning notice to ensure it complies with the requirements of the code. Find out more about the Momentum Energy undertaking on our website.

What are enforceable undertakings?

Enforceable undertakings are undertakings given to us (and accepted by us) which are enforceable in a court. They are generally accepted by us as an alternative to civil or administrative action where there has been a contravention of the legislation we administer.