New guideline to help water businesses address billing issues

The Essential Services Commission has published new guidance on how water businesses may recover money from customers who have been undercharged on bills.  
The new guideline provides advice on:

• common causes for undercharging
• how to best notify a customer they have been undercharged  
• how to recover an undercharged amount from a customer.  

In Victoria, water businesses have a four-month backbilling limit where a customer has been undercharged for a water bill. This limit applies to all undercharged amounts related to water and sewerage services, including:  

• incorrectly issued bills
• bills that are issued late
• bills that are not issued at all.  

This bill adjustment period protects customers by providing incentives for water businesses to issue accurate quarterly bills. 

This guideline clarifies the commission’s position on backbilling and expands on the advice contained in the commission’s letter to the Energy and Water Ombudsman of Victoria about Greater Western Water’s delayed billing. 

The guideline does not impose any new obligations on water businesses and does not alter the obligations in the Water Industry Standards.  

Frequency of bills 

A water business's billing cycle must be at least quarterly unless otherwise approved by the commission. Currently, Gippsland Water, Goulburn Valley Water and South Gippsland Water have a billing cycle that is less frequent. Their billing cycles are included in their customer charters and reflect legacy practice.  

These businesses are currently at risk of having no contingency when complying with the four-month back-billing limit. It is up to them to manage any associated risks.