KEY POINTS:
Power companies are going to find it much more difficult to cut off electricity under measures being considered by the Government.
Prime Minister Helen Clark said today the companies would have to tell consumers about help that was available if they could not pay bills, they would have to make sure there were no vulnerable people in homes that faced cut off, and they would not be allowed to disconnect on Fridays or during a weekend.
Miss Clark said the Cabinet had not yet decided how these requirements would be put in place, but she is not ruling out regulation.
She said guidelines and protocols had been in place for about two years, but they did not stop Mercury Energy cutting off the power to the house where Folole Muliaga was sick and using an oxygen machine.
The 44-year-old mother died less than three hours later. Her death is being investigated by the police.
Miss Clark revealed that Mercury Energy was asked by State-owned Enterprises Minister Trevor Mallard why it did not follow the guidelines and tell the Muliaga family about assistance that was available from government agencies.
She said Mercury replied that it was not required to.
"The Government believes the guidelines should not just recommend what the retailer should do, there should be a requirement for the retailer to advise consumers of available assistance," she said.
"Further, we've agreed there should be additional requirements where there are vulnerable people in a household facing disconnection.
"Electricity retailers should be required to check actively whether a consumer they are considering disconnecting is a vulnerable person, or whether there is a vulnerable person in the household or family."
Miss Clark said the Cabinet also agreed that electricity companies should not be allowed to disconnect on a Friday or a weekend, which made reconnection difficult, or during an adverse weather event or a civil emergency.
She again criticised Mercury Energy for disconnecting the Muliaga's house, saying it was a state-owned enterprise (SOE) and was required to behave in a socially responsible way.
"I'm frankly appalled that an SOE with a requirement in law to be socially responsible would not advise consumers of where they can turn for help because, in its own words, it 'wasn't required to'," she said.
She said the situation had demanded a response from the Government.
"It really had never occurred to anyone that a contractor would go in and cut off the power of a woman who clearly was in medical need," she said.
"That having happened, it's clear there has to be a response because it's clear you can't always rely on human decency."
Miss Clark said the new measures would apply to all electricity retailers, not just SOEs.
"We're going to consider advice on whether to ramp up the guidelines with the threat of regulation, or whether we move to rules, regulations and a government policy statement. Those are the options."
Miss Clark said the Ministry of Social Development dealt with about 32,000 cases a year of people who faced disconnection or had been disconnected.
"They would like to be on the front foot with vulnerable people, and help them put in place procedures for payment of bills in negotiation with the retailer, so they don't go down the track of disconnection."
Miss Clark said the family had asked her to go to Mrs Muliaga's funeral tomorrow, and she would do so if she was able to.
National's state-owned enterprise spokesman, Gerry Brownlee, said the Government should not rush into regulating power companies.
"Laws written as a knee jerk response to an event are seldom good laws, especially if they're being decided before all the facts are clear," he said.
"The law shouldn't be used as a scapegoat when other companies have not found themselves in similar situations."
- NZPA
