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Friday, 2 July 2010Allegations on Aurora credit policy incorrect
Aurora Energy today made it clear that there had been no change to its policy in relation to security payments and does not profit from the interest-bearing deposits of the minority of customers who are required to pay them.
Aurora’s Customer Services Manager Scott Adams said the company’s policy in relation to the form, amount, receipt, holding and return of security is as provided for in Part 3 of the ESI (Tariff Customer) Regulations 2008.
“Residential customers are not required to provide a security for payment when establishing a new connection unless they are new customers and fail to produce ID, have illegally used electricity in the previous two years or have an outstanding account and refuse to enter a payment plan,’’ Mr Adams said.
“Business customers are required to provide a security payment if they are a new business customer and are unable to establish a satisfactory credit rating, they have been disconnected for non-payment or are judged to have an unsatisfactory payment history.
“Security for payment, especially in the case of residential customers, is not a substitute for appropriate payment or billing options and is a measure of last resort when these avenues have been exhausted.
“Furthermore, Aurora Energy does not “pocket the difference’’ from cash deposits as was “assumed’’ in claims made to the news media today by a Member of Parliament.
“Where customers elect to pay an interest-bearing deposit, the sum is deposited into a financial institution on behalf of Aurora. This earns interest and the customer receives this amount back after two years with all interest as long as they can establish a satisfactory payment history.
“Information provided to the news media today relates to particular customers, which under Privacy laws cannot be directly commented on by Aurora.
“However, the claims made in relation to these matters could have been firstly clarified by Aurora without alarming prospective customers.
“In relation to the $24,000 security required from irrigators prior to connection, it is understood that this example is not related to the creditworthiness of prospective customers. It represents a network security deposit. This payment represents an estimate of the cost to Aurora to complete the required infrastructure upgrade, and is required prior to work commencing.
“Network security deposits have always been required from customers who request work to be undertaken, commonly in the case of new subdivisions or other developments.’’
Released by Aurora Public Relations, 6237 3341
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