ComCom warns Genesis over business billing errors

The Commerce Commission has issued a warning to Genesis Energy Limited about billing errors concerning electricity line charges to business customers.

Genesis reported the errors to the commission, which considers Genesis is likely to have breached the Fair Trading Act when, between February 2014 and July 2020, it issued invoices that displayed inaccurate multipliers applied in respect of some electricity line ‘fixture charges’. As a result, Genesis misrepresented the total price to be paid for the electricity services provided to affected business customers, ComCom says.

Genesis is crediting or refunding the 1576 customers who overpaid $1,138,943 in total. It will not seek to recover charges from the 1356 customers who underpaid more than $2,400,000.

“In many cases customers will not be in position to easily identify whether an error has been made when they are invoiced for goods and services and they are entitled to assume that they are being asked to pay what is due to be paid,” Commerce Commission chair Anna Rawlings says.

“Businesses must make sure that they have systems in place to ensure that customers are charged accurately, and to identify and correct inaccuracies promptly if they arise.

“Genesis reported this matter to the commission itself in July 2020. It has confirmed that it has ceased the conduct, has put an audit system in place to minimise the risks of a billing error occurring again, and it is crediting or refunding affected customers.”

The warning letter has been published on the commission’s case register.