KEY POINTS:
Power companies are questioning the Government's demand that they check if a customer is vulnerable or financially struggling before cutting off electricity over unpaid bills.
Several companies yesterday raised the question of how far the concept of social responsibility reached and where consumer responsibility kicked in. Some also said privacy issues could be involved in finding out a customer's status.
The Government is looking at toughening voluntary guidelines that recommend electricity providers refer customers to social agencies if they are struggling financially or are vulnerable, including those with medical treatments that require a power supply.
It is in response to the fate of Folole Muliaga, who died last week within hours of her household's power being switched off.
State-owned and private electricity companies - Meridian, Genesis, Contact and TrustPower - said they had already implemented the voluntary guidelines, so making them mandatory would have no practical difference.
But customers were only referred to social agencies if they had made contact with the provider.
Meridian Energy spokesman Alan Seay said: "It's all very well saying the power company has to advise the consumer but it's really difficult if consumers are hard to contact."
He said the real issue was communication, as most customers who made contact worked out arrangements to avoid disconnections. Those who didn't, despite repeated warnings, faced the lights going out.
Companies also would not know if people were vulnerable unless told.
Genesis Energy public affairs manager Richard Gordon said the Government's move to shift responsibility on to electricity companies posed problems.
"Are we meant to go sniffing around peoples' homes to work out whether they're vulnerable? And there are issues with the Privacy Act - can we call up the Health Department and ask who they've given oxygen machines to?"
If the company was forced to hire more workers to make physical contact with those facing disconnection, then that would bring a "new cost structure that will have to be recovered, impacting electricity prices".
TrustPower spokesman Graeme Purches said little was wrong with the present system and regulating would not make customers more contactable.
"We have 220,000 customers and we disconnect an average of 230 properties a month - about 0.1 per cent of our customers," he said.
"There are many ways to help customers but we have to know that they're in trouble. At the end of the day, an electricity retailer can't tell customers what to do. Surely people have to exercise some personal responsibility."
TrustPower had a close relationship with Work and Income and often took an active role in sorting out alternative pay arrangements to avoid disconnection.
"But it relies on the customer taking some proactive steps to help them get out of their mess."
Mr Seay said Meridian had an arrangement with agencies - including the Salvation Army, the City Mission and Grey Power - to help those that did not make contact.
"Those agencies are connected to the disadvantaged and the vulnerable. If they advise us they're working with one of our customers, we take them out of our disconnection process."
Privacy Commissioner Marie Shroff said the Privacy Act was flexible in a life-threatening situation, especially if health and welfare were at stake.
- additional reporting Paula Oliver.
