❓ WA Parliamentary Question on Notice regarding bad debts incurred by energy providers in WA between 2006-2007. Reveals varying levels of bad debt and debt management practices across different energy corporations.
AnsweredQoN 5140Legislative Council
QuestionView source ↗
(1) The amount and number of bad debts incurred between 1 July 2006 and 30 June 2007?
(2) The names of outstanding debtors?
(3) What measures, if any, have been taken in the period between 1 July 2006 and 30 June 2007 to keep bad debts to a minimum?
(2) The names of outstanding debtors?
(3) What measures, if any, have been taken in the period between 1 July 2006 and 30 June 2007 to keep bad debts to a minimum?
AnswerView source ↗
Answered
27 September 2007
Responded by
Leader of the House representing the Minister for Energy
Response time
30 days
The Minister for Energy has been provided with the following response
Horizon Power
1) 1725 bad debts, amount $493,163.25
2) The provision of such information contravenes Horizon Power's Retail Privacy Policy and may be commercially sensitive.
3) Horizon Power has a strict credit control and debt collection policies and procedures document in place.
All credit management and billing services procedures are published on the Horizon Power website. A credit application form is completed by all new applicants, with a customer background check subsequently performed. Invoices are regularly sent to customers, which are followed up by reminder notices and disconnection notices, until finally supply of electricity to defaulting customers is disconnected until payment is received on the overdue account. Customer accounts continuing to remain unpaid after this time are then referred to a debt collection agency.
In January 2005 a Code of Conduct was introduced for all Retailers of electricity. The code requires every Retailer to have its own Hardship Policy to protect customers who are in financial hardship. Horizon Power's Hardship Policy can be found on the Horizon Power website.
Independent Market Operator
(1) Nil.
(2-3) Not applicable
Office of Energy
(1) Nil.
(2) Not applicable.
(3) In accordance with
Financial Management Act 2006
, receivable balances are monitored on an ongoing basis with the result that the Office's exposure to bad debts is minimal.
Synergy Energy
To respond to this question would require significant time and resources which would divert staff from their normal duties, and Synergy does not consider it appropriate to devote such resources to provide the information sought. In addition, the provision of such information could be commercially sensitive to Synergy's customers.
Verve Energy
(1) Nil
(2) Not applicable
(3) The Manager of Finance completes a weekly debtors aging report. With debts of more than 30 days, debtors are telephoned and sent a reminder.
Western Power
(1) Amount of bad debts = $289,025.85
Number of bad debts = 26
(2) At 30 June 2007 there were approximately 1293 outstanding debtors. To respond to this question fully would require significant time and resources which would divert staff from their normal duties, and Western Power does not consider it appropriate to devote such resources to provide the information sought. In addition, the provision of such information could be commercially sensitive to Western Power's customers.
(3) If payment is not received within the stipulated terms, a request for payment letter is sent out.
Customers owing more than $10,000 are telephoned by accounts receivable staff to request payment,
Pending non-payment, a further letter is sent to the customers notifying them that if payment is not received, legal action will be taken.
Pending further non-payment, customers are handed over to debt collectors.
If the debt collector is unsuccessful, then the account is written off and the customer's details placed on Veda Advantage's credit bureaux to limit their future ability to raise credit.
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
Horizon Power
1) 1725 bad debts, amount $493,163.25
2) The provision of such information contravenes Horizon Power's Retail Privacy Policy and may be commercially sensitive.
3) Horizon Power has a strict credit control and debt collection policies and procedures document in place.
All credit management and billing services procedures are published on the Horizon Power website. A credit application form is completed by all new applicants, with a customer background check subsequently performed. Invoices are regularly sent to customers, which are followed up by reminder notices and disconnection notices, until finally supply of electricity to defaulting customers is disconnected until payment is received on the overdue account. Customer accounts continuing to remain unpaid after this time are then referred to a debt collection agency.
In January 2005 a Code of Conduct was introduced for all Retailers of electricity. The code requires every Retailer to have its own Hardship Policy to protect customers who are in financial hardship. Horizon Power's Hardship Policy can be found on the Horizon Power website.
Independent Market Operator
(1) Nil.
(2-3) Not applicable
Office of Energy
(1) Nil.
(2) Not applicable.
(3) In accordance with
Financial Management Act 2006
, receivable balances are monitored on an ongoing basis with the result that the Office's exposure to bad debts is minimal.
Synergy Energy
To respond to this question would require significant time and resources which would divert staff from their normal duties, and Synergy does not consider it appropriate to devote such resources to provide the information sought. In addition, the provision of such information could be commercially sensitive to Synergy's customers.
Verve Energy
(1) Nil
(2) Not applicable
(3) The Manager of Finance completes a weekly debtors aging report. With debts of more than 30 days, debtors are telephoned and sent a reminder.
Western Power
(1) Amount of bad debts = $289,025.85
Number of bad debts = 26
(2) At 30 June 2007 there were approximately 1293 outstanding debtors. To respond to this question fully would require significant time and resources which would divert staff from their normal duties, and Western Power does not consider it appropriate to devote such resources to provide the information sought. In addition, the provision of such information could be commercially sensitive to Western Power's customers.
(3) If payment is not received within the stipulated terms, a request for payment letter is sent out.
Customers owing more than $10,000 are telephoned by accounts receivable staff to request payment,
Pending non-payment, a further letter is sent to the customers notifying them that if payment is not received, legal action will be taken.
Pending further non-payment, customers are handed over to debt collectors.
If the debt collector is unsuccessful, then the account is written off and the customer's details placed on Veda Advantage's credit bureaux to limit their future ability to raise credit.
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
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