This guidance was published on 15 October 2020.
Guidance note 3 (2020): Payment arrangements and the written schedule of payments for residential customers anticipating or facing payment difficulties
This guidance was published prior to the Energy Retail Code becoming a code of practice under Part 6 of the Essential Services Commission Act 2001 and is subsequently being restructured. The obligations that are the subject of this guidance note (previously located in clause 81 of the Energy Retail Code) can now be found in clause 130 of the Energy Retail Code of Practice
Following a referral by the Energy and Water Ombudsman (Victoria), the commission considered the requirements of clause 81(5) of the Energy Retail Code (v16). Clause 81 is contained in Part 3 of the code titled Assistance for residential customers anticipating or facing payment difficulties and sets out the requirements for a written schedule of payments.
Clause 81(5) of the Energy Retail Code provides:
On accepting a payment proposal or a revised proposal, the retailer must give the customer a written schedule of payments showing:
(a) the total number of payments to be made to pay the arrears
(b) the period over which the payments are to be made
(c) the date by which each payment must be made
(d) the amount of each payment.
The payment plan schedule should be in writing and use plain language, be legible and presented clearly (see clause 87(1) of the code). Retailers should also provide customers with their options for making the payments on the written payment schedule (see section 4.15.12 of the Energy Compliance and Enforcement Policy: Guidance note – Payment Difficulty and Disconnection). View all of our up to date energy codes, guidelines and policies.
We considered a written schedule of payments that outlined the total number of payments to be made under the payment plan, the period over which the payments were to be made and the amount of each payment. The schedule of payments did not specify the date by which each payment must be made. Instead, it stated the start date, end date and payment frequency.
We considered that the schedule of payments did not comply with the mandatory requirements of clause 81(5). The requirement of this clause is to explicitly state the due date of each payment under an agreed payment plan. Although the customer may deduce the due date of each payment by stating the start date, payment frequency and end date, this is insufficient to demonstrate compliance.
This guidance note provides an example (attachment 1) of a payment plan schedule. This is an indicative payment plan schedule only to demonstrate compliance and should be tailored according to the purpose for which it is used, in a manner compliant with the requirements of the code.
Attachment 1: written schedule of payments example
Your payment plan schedule
- Total number of payments
- Period over which the payments are to be made
- Amount of each payment
- Payment options.
|
Payment date |
Payment amount |
Payment date |
Payment amount |
Payment date |
Payment amount |
|
Date 1 |
$0.00 |
Date 21 |
$0.00 |
Date 41 |
$0.00 |
|
Date 2 |
$0.00 |
Date 22 |
$0.00 |
Date 42 |
$0.00 |
|
Date 3 |
$0.00 |
Date 23 |
$0.00 |
Date 43 |
$0.00 |
|
Date 4 |
$0.00 |
Date 24 |
$0.00 |
Date 44 |
$0.00 |
|
Date 5 |
$0.00 |
Date 25 |
$0.00 |
Date 45 |
$0.00 |
|
Date 6 |
$0.00 |
Date 26 |
$0.00 |
Date 46 |
$0.00 |
|
Date 7 |
$0.00 |
Date 27 |
$0.00 |
Date 47 |
$0.00 |
|
Date 8 |
$0.00 |
Date 28 |
$0.00 |
Date 48 |
$0.00 |
|
Date 9 |
$0.00 |
Date 29 |
$0.00 |
Date 49 |
$0.00 |
|
Date 10 |
$0.00 |
Date 30 |
$0.00 |
Date 50 |
$0.00 |
|
Date 11 |
$0.00 |
Date 31 |
$0.00 |
Date 51 |
$0.00 |
|
Date 12 |
$0.00 |
Date 32 |
$0.00 |
Date 52 |
$0.00 |
|
Date 13 |
$0.00 |
Date 33 |
$0.00 |
Date 53 |
$0.00 |
|
Date 14 |
$0.00 |
Date 34 |
$0.00 |
Date 54 |
$0.00 |
|
Date 15 |
$0.00 |
Date 35 |
$0.00 |
Date 55 |
$0.00 |
|
Date 16 |
$0.00 |
Date 36 |
$0.00 |
Date 56 |
$0.00 |
|
Date 17 |
$0.00 |
Date 37 |
$0.00 |
Date 57 |
$0.00 |
|
Date 18 |
$0.00 |
Date 38 |
$0.00 |
Date 58 |
$0.00 |
|
Date 19 |
$0.00 |
Date 39 |
$0.00 |
Date 59 |
$0.00 |
|
Date 20 |
$0.00 |
Date 40 |
$0.00 |
Date 60 |
$0.00 |
This payment plan schedule must comply with rules administered by the us which require retailers, among other things, to provide you with a written record of payment arrangements that is in plain language, is legible and presented clearly.
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