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Complaints to ombudsman as Northern Rivers residents sent power bills for flood-damaged properties with no power

The Energy and Water Ombudsman NSW says it has received dozens of complaints about power bills issued for unoccupied flood-affected homes and businesses on the state's Far North Coast.

Lismore business owner Anne Walker said she had not used her business premises since it was flooded in February 2022, but months later she received messages from her retailer that said she owed more than $700.

"The texts were coming in saying if I didn't pay this amount, they were going to discontinue my electricity, which is ironic because there was no electricity," she said.

Ms Walker spoke to her provider in October to address the issue, but it took until last week to be resolved.

"It was very stressful — extremely stressful," she said.

The ombudsman's office recorded 55 complaints from the Northern Rivers since the start of September, including 28 from the Lismore area.

"Often there's no resident there, the property is not occupied and, of course, the billing doesn't reflect the fact that," said ombudsman Janine Young.

"[There is] either no usage or, where there is some usage, it's overestimated."

Estimated bills to be reviewed

Residents who spoke to the ABC said the incorrect bills they received were based on estimates of their usage.

This occurs when a meter reader is unable to access a property to record the energy usage, so an estimated bill is issued by the energy provider.

In the case of a situation that has led to vastly reduced energy usage, or no usage at all, Ms Young said the rules for bill estimates needed to be reviewed.

"When estimates are done, the rules allow an estimated bill based on the same period the prior year, or on what a comparable customer might be," she said.

"When there's been floods and there's been no usage, if you're getting an estimate based on the prior year, that's completely wrong.

"Those rules have to be looked at."

Customers should first try to resolve any dispute with their retailer, but those left dissatisfied could turn to Ms Young's office for help, she said.

"We've had outcomes where we've got the bill waived, where we've had the daily supply charges waived as well," Ms Young said.

"The retailer is much more aware of the customer circumstances and when it's likely that the property can be again inhabited — if it can be."

No meters, no power

Adrian Walsh from Broadwater said he received an estimated usage bill of about $800, despite not having power after the flood.

"When I first rang up and complained [to the retailer] ... their solution was to pay the bill and perhaps I could claim it back later," he said.

"I wasn't really in the mood for that."

Bungawalbin's Keely Patch said metering equipment damaged by the floods was still not working in her area.

Despite having only a single working power point in her home, Ms Patch said she was sent estimated usage bills that totalled $800.

"If estimated bills are based off previous usages, that kind of gets taken out of the picture when, for months, there was no usage at all," Ms Patch said.

"Since the bills have come in, I've only been running a fridge and some lights and that's pretty much all I've got."

The ABC heard from people who were experiencing similar issues across a range of energy retailers.

In a statement, Origin Energy said it was committed to supporting customers affected by floods.

"Once we have been made aware that a property or meter has been destroyed or damaged, we have processes in place to prevent these customers from receiving any bills, or [we] can amend bills based on customer-provided information," the statement said.

"We apologise if any customers have had difficulty resolving their issues with us. We encourage any customers impacted by floods to contact us."

Red Energy said it stopped billing and debt collection activities in the aftermath of the floods while it assessed the situation.

The company said it made contact with 420 badly affected customers to offer advice, and provided credits or waived bills on the accounts of approximately 180 customers.

"It's worth noting that if a property remains connected to power, the energy retailer is obligated by law to issue timely bills," it said in a statement.

"For any Red Energy customer who continues to be impacted by the floods and is concerned about their energy supply or their bill, please call us."

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