Ombudsman 'vital for electricity disputes'

By RICHARD BRADDELL

WELLINGTON - The electricity sector needs an industry-funded ombudsman just like those in the insurance and banking industries, says a coalition of industry and consumer groups.

The Consumer Coalition on Energy said failure to give consideration to an ombudsman was a disappointing omission from the terms of reference for the Government's electricity inquiry.

The coalition said the institution of an ombudsman was essential to a durable solution to industry problems as disputes between consumers and suppliers, whether energy or lines companies, would become more common.

"Consumers cannot rely on the olden-days approach when the local power company was looked upon benignly and behaved accordingly," the coalition said in an open letter.

A proliferation of specials, packages and bundled goods and services would combine with new computerised switching, trading and settlement to boost sources of consumer-supplier friction.

The coalition represents the Consumers' Institute, Federated Farmers, the Major Electricity Users Group and the Manufacturers Federation.

In citing the banking and insurance models, it is advocating that the industry set up its own ombudsman charged with handling lines and retailing complaints, and possibly the gas industry as well, rather than waiting for legislation.

Coalition spokesman David Russell said it was preferable that the industry agree on a code of practice.

"We believe the industry needs to agree now that an ombudsman's office is part of the preferred longer-term solution, otherwise other more costly and interventionist regulatory and policy options will be implemented which will be difficult to unwind in the future."