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In Australia, renter pushes back on $168 power disconnection fee, and it disappears

"This should be illegal."

A person holds paperwork while looking annoyed and talking on the phone at a table with a calculator.

Photo Credit: iStock

An Australian mover said a phone call that began with an unexpected electricity disconnection charge ended with no fee at all after they objected, offering a possible money-saving lesson for other households.

Here's what to know

On the r/AusFinance subreddit, the renter said 1st Energy told them it would cost AU$242 (US$168) to disconnect service before moving out. On Reddit, they compared that with the AU$16.50 remote connection fee they had paid when moving in and said they asked why ending service could be so much more expensive.

According to the post, a customer service representative said 1st Energy did not have Ausgrid approval for remote shutoffs and that this was the reason for the AU$242 charge. The renter said they responded by calling the amount "outrageous" and said yes when the representative asked whether they wanted to contest it.

Roughly two minutes later, after a brief hold, the representative came back and said the charge would be waived in full. 

More background

The replies suggested that connection and disconnection fees can differ widely between Australian energy providers. 

One commenter said: "I'm with origin and had multiple disconnections due to a few moves! But never in my life had been charged a fee for disconnecting!" 

That account suggested that some customers have moved several times without encountering a similar cost. Other commenters reported lower, but still significant, fees. 

"I've been with origin for years and are moving and changing away from them because of their price but I'm being charged a AU$100 disconnection fee," one wrote. 

That points to sharp differences by provider, location, or circumstance, which can make these charges difficult to predict when planning a move. Moving already comes with bond, transport, cleaning, and utility setup costs, so avoiding an unexpected charge can make a difference.

A user captured the frustration: "WTF! This should be illegal. It's literally an entry in their system. Pressing the buttons takes 20 seconds max."

What can be done?

If a provider quotes a disconnection fee, it may be worth asking for a review or contesting it before agreeing to pay. In this case, the renter said the charge was removed during the same call.

One commenter wrote, "Try to shaft you. Oh, you actually know the rules? OK never mind then." 

In the original poster's account, that was effectively the result. The fee was not necessarily fixed once the customer pushed back.

When arranging a move, confirm any connection or disconnection fee during the call, ask what justifies it, and request that it be contested or waived. In the best-case scenario shown here, that could save money.

"Thought I would post this for awareness to others that you can just verbally contest the disconnection fee over the phone and they will waive it on the spot," the OP concluded.

Where can I learn more?

Utility fees and billing disputes can escalate quickly when customers think the charges don't add up. 

• A tenant sought help after landlord's electricity theft appeared to inflate bills for a pool and freezer.

• Utilities drew scrutiny after spending electricity bills on transmission lines instead of easing customer costs.

• PacifiCorp sparked outrage by seeking to bill customers for $1.7 billion in wildfire damages.

• Duke Energy faced criticism after controversial business practices threatened to raise North Carolina electricity bills.

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