LIOB Meeting December 11, 2002
Consumer Complaints Back billing: This occurs when the utility has found an error in the billing. Retroactive bills are issued to correct the error. The back billing errors normally are related to the incorrect demand used in calculating the billing on commercial accounts. Delayed billing: This occurs when the utility has not issued a billing, due to what the utility states is a data issue. Retroactive billing: This occurs when the utility has mis-read the meter, estimated the billing or the meter has malfunctioned. The bills are reissued to correct the mis-read, estimate or low/high billing due to the failing equipment. Problems In each of these item the question of discovery first comes to mind. When was this discovered? What was the period of time between the discovery and the correction? What supporting documentation is there to support the correction? Back Billing: Bills often cover periods of time that span several years. The corrections often are from a period that exceeds the most recent three years. This raises concerns with the consumer about the validity of the billing. It also creates a financial hardship. Delayed Billing: This can be for a few months or can cover the full time as stated in Tariff Rule 17, (3 years). This can cause a financial hardship when a consumer receives the corrected billing. Retroactive Billing: Consumers say they can accept a malfunctioned meter as a cause for retroactive billing and the three month retroactive billing, however, when the account has been estimated or the meter has been mis-read the consumer has a more serious issue with the method used by the utility to correct these bills. In all of these billing corrections, the utility billing is hard for the consumer to understand, and often very difficult for them to repay in addition to their normal payments. Deposits: The utility has the right to request a deposit for a new customer that has not had service with the utility, or has not had service in the past 2 years, or has had service and the payment history has not been good (late notices), or if the customer has the service interrupted.
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LIOB Meeting December 11, 2002
Problem The biggest problem is that the deposits are 2-times the customer’s highest bills in the past 12 months. With the increase in the billing due to the Energy Surcharge, the deposit amounts have increased significantly. The utility includes the surcharge in the calculation of the deposit. In the business sector, the bills are often late; this is most often directly related to the terms of payment, which have a “due upon receipt” requirement. Most AP/AR systems in large business are not set up to pay in this manner; while the accounts are paid in full, they do not meet the utility’s terms, and late reminder notices are issued. In the private sector, with the increase in energy bills caused by the surcharges, a consumer often cannot afford to pay the deposit amount in addition to the current charges. One main problem is that the utility has been very lax in the implementation of the deposit request until recently. Consumers complain that they have paid upon receipt of the late notice for years and have never been requested to pay a deposit. Utility late payment notices should include verbiage that warns consumers that the consequences of continual late payments will result in a deposit requirement. The utilities state they send deferral letters, but this is a one-time notice. Most consumers do not take this seriously due to previous patterns by the utility of not requesting a deposit. If the verbiage was included on the notices, this may increase the payment turn over, and prevent the deposit requirement, or at the least if the late notice included the warning the consumer would receive the benefit of notice more than once when receiving the deferral letter, provided that they actual do receive it. Low Income Program: The utility seems to have a delayed system in processing these applications. Consumers state that they sometimes send the application several times, as well as supporting documents before the discount is applied. Many consumers are not aware of the program. This should be part of the application-for-service process, and a follow up should be sent. Problem: The utility is slow processing the applications. There are no retroactive adjustments for a consumer who has been on the program but removed due to not recertifying. Once the recertification information has been received and processed by the utility, if the consumer is found to still be eligible they should be billed retroactively, and given the benefits of the program. Retroactive bills are often not affordable to the consumer; they cannot afford the arrangements for the large retroactive billing without the discount, in addition to their normal payment for current charges. 2
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LIOB Meeting December 11, 2002
The re-certification information should be printed on the bills, and there should be a reminder notice sent once the re-certification has been sent. The following statistical information is unverified, most complaints related to these items are coded as billing disputes, and are not coded with the specific issue. ISSUE Back Billing Deposits CARE Bill Disputes SCE 199 269 41 1,739 PG&E 184 765 28 2243 UTILITY SDG&E 1 4 2 54 So Cal Gas 6 12 6 197
Data taken from Oracle from the period 1/1/02 – 11/30/02
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