It’s an unfortunate fact that occasionally we’re going to get very bad service or an inferior product resulting in disappointment and dissatisfaction. And as we all know, this can quickly turn into anger and frustration if the problem isn’t sorted out amicably and fairly within a reasonable period of time. In some cases, when resolution is not forthcoming, this can lead to a serious dispute resulting in a formal complaint, involvement of a recognised external dispute resolution body such as an ombudsman or even the courts if things get really nasty.
Not too long ago I had cause to complain about poor service. As this turned into one of those frustrating episodes, I thought I’d share my experiences on how the problem was eventually resolved.
Back in my January 2010 column How to resolve a dispute with your bank I wrote about the growing number of disputes between banks and their customers and provided some tips on the best way to deal with them. While my recent dispute was with an electricity company the principles outlined in my earlier column still held true.
The situation
To do our bit for the environment my wife and I decided to install a solar power system, which we were able to do thanks in part to the Government’s now defunct solar rebate scheme. Our thinking was that we’d reduce our carbon footprint by feeding solar power into the electricity grid, which in Victoria is bought back at a higher rate than what is charged to consumers. In fact, at the time of installing our system, the buy-back rate was and still is around twice the peak electricity usage charge per kilowatt hour (although it looks as though following a State government decision, the rate is coming down substantially, at least for new systems) so there are financial benefits as well as environmental ones to enjoy.
Unfortunately, when we received our first billing receipt we discovered the electricity company was buying back what we generated at the same rate it was charging us, which was not only contractually incorrect but also costing us money. Naturally, as soon as I was aware of this I rang up and let them know about the problem, thinking that since it was an obvious and easily fixed error it wouldn’t take long to resolve. How wrong I was. (More from Peter Boehm: How To Find A Property Bargain)
The response
It took me over six months and countless phone calls to various departments to get this problem sorted, partly because I couldn’t check the right buy-back rate was being applied until I got my next electricity bill. On each occasion the customer service staff I spoke to was polite and understanding and genuinely tried to resolve the matter. Importantly, they acknowledged it was their fault and each time said they would fix the buy-back rate.
The problem was that although promises were made, the error remained for a further three electricity bills. By this time I was livid and my final phone call was a rather firm one where I made it clear I wasn’t prepared to wait any longer. The electricity company was breaking its promises, wasting my time and providing exceptionally poor (albeit polite) service, and I let them know it. Again they apologised and promised to fix the problem. (More from Peter Boehm: Beware Of Property Bargains)
The action
The big difference between my final call and the previous ones was that I said regardless of the outcome I was referring the matter to the EWOV(Energy and Water Ombudsman Victoria www.ewov.com.au), which I did.
Sadly, the Ombudsman reported it was extremely busy – over 42,000 complaints were handled during 2009/10, up 10% over the previous year and massive 139% on five years earlier – and gave me the option of waiting 20 working days for a case handler or authorising the Ombudsman to send an email to the serious complaints section of the electricity company. Not wishing to wait a further month I went for the latter, with an immediate result.Within 24 hours the electricity company contacted me, explained the problem at their end (apparently there was a communication breakdown between the solar power department and the billing department) and fixed my initial complaint within 48 hours. The correct buy-back rate was applied and I got a full back-dated refund. Too bad this couldn’t have been done on day-one without the need to involve an already overworked ombudsman service – not to mention the hassle it caused me! (More from Peter Boehm: Home Ownership Halved)
The lesson
So what did I learn from this experience? Here are my top tips on resolving protracted service or product disputes:
1. State a clear and concise caseThe core problem and how to fix it were identified and acknowledged quickly. Unfortunately, the electricity company just couldn’t execute the solution.
2. Stay calm and develop a rapport with staffEven though I was justifiably angry, I kept my cool throughout. The customer service staff were supportive and sympathetic and did what they reasonably could; it was their internal systems that let them down, not their willingness to help.
3. Follow necessary proceduresI followed the electricity company’s internal procedures when escalating my problem. This was very important because the Ombudsman would not have considered my dispute unless I did so.
4. Formally escalate the complaintTaking my case to the Ombudsman, after considerable patience on my part, got the outcome I wanted. In hindsight, I probably should have taken this step much sooner, and I certainly will if something like this happens again.
5. Maintain your obligationsI paid my bills in full and on time even though everyone new they were too high. I did this because I knew that a refund would be forthcoming and I thought it would be unhelpful to have to deal with the distraction of a collections issue, a possible negative entry on my credit file or having my power cut off.
Although this still turned into one of those service provider disputes we could all happily live without, I’m sure it would have gone on for longer and possibly turned out badly had I not followed the above tips. Keep this in mind when you next have to deal with such a problem – after all, no one benefits from making a bad situation worse.
How successfully have you handled disputes with a product or service provider? Did you have to escalate your issue to an external dispute body like an ombudsman service? Share your views below.
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Peter Boehm’s first book, The Great Australian Dream: A Guide to Buying Your First Home, was recently published. It discusses the numerous challenges Australians face in entering the property market and provides straightforward advice, hints and tips on getting past them.
