Guideline on arrangements to assist low income consumers (Guideline)

Paragraphs 18 to 19 of the 2004 GPS required the Commission to develop arrangements for the benefit of low income consumers.  These were published in November 2005.

In 2007 an updated Guideline on arrangements to assist low income and vulnerable consumers pdf [73 KB] was issued.  In January 2008 the Commission amended clause 23 of the guideline  in order to comply with the Human Rights Act 1993.

Paragraph 23 of the 2008 GPS requires the Commission to monitor compliance with the guidelines

• Guidelines on arrangements to assist low income and vulnerable consumers - 30 January 2008 pdf [74 KB]

Requirements of the Guideline

The guideline puts in place an enhanced process around disconnections for non payment, including a range of requirements that retailers must meet before a disconnection can take place.

The requirements include:

• regular communication to all consumers on their payment options
• arranging debt recovery in a time-frame that avoids an adverse credit situation for the retailer and minimises hardship for the consumer
• ensuring consumers enter into the most appropriate contracts for their needs
• providing consumers the opportunity to identify themselves as potentially vulnerable
• consultation with the Ministry of Social Development to assist vulnerable consumers unable to pay
• a visit to a consumer’s home before the final disconnection takes place.

Archive

• 2005 guideline and information regarding its development

• Guideline on arrangements to assist low income and vulnerable consumers - July 2007 pdf [73 KB] Please note that Clause 23 of this version of the Guideline has been updated in the January 2008 version.  If a retailer refused to provide a prepayment meter on the basis that person is a medically dependent vulnerable consumer, as required by the July 2007 version of clause 23, it would be likely to be in breach of the Human Rights Act 1993.

• Clause 23 was updated in January 2008 in order to comply with the Human Rights Act 1993. The updated clause provides that retailers may issue pre-payment meters to consumers dependent on electricity for critical medical support provided that the consumer has been fully informed of the risk of self-disconnection before installing the meter. This is so that the consumer can make a fully informed choice.