SOUTHPOWER RESPONDS TO CONTRACT CHALLENGE

The Minister of Consumer Affairs, Hon Robyn McDonald today welcomed the announcement by Southpower that the company was issuing a new domestic supply contract in response to last month's Ministry of Consumer Affairs report "An Analysis of Contracts, Metering and Disputes Procedures for Domestic Electricity Customers".

"This is a positive response to the challenge faced by all power companies when the Ministry's report was released," said Mrs McDonald.

"Southpower was identified then, as offering one of the worst contracts for customers. This latest contract sets a new standard in customer focused terms and conditions which I hope the rest of the industry will follow.

The Minister said that Southpower was the first company in the industry to respond to the challenge of providing their customers with good terms and conditions. Southpower will now:

pay customers interest on their bonds;
provide a disputes procedure to ensure quick and efficient handling of disputes;
consult customers on changes to their contracts;
accept that they are responsible if the meter is faulty; and
pay fair compensation for problems caused by the company.
Southpower also plans to provide customers with a performance guarantees scheme, services for special needs customers, eg the elderly, and plain English information on how to resolve complaints and avoid disconnection.

"I am also pleased that Southpower consulted widely with community groups over the contract," the Minister said.

"I hope that all power companies will follow this example so that good terms and conditions can become the standard throughout the electricity industry," Robyn McDonald concluded.