Debt Management, Stop Supply and Hardship Procedure

1. Objective

This Debt Management and Hardship Procedure sets out the rights and responsibilities of Goulburn-Murray Water (GMW) and our customers in relation to the management of outstanding debt and suspending a customer’s water supply due to non-payment (Stop Supply).

2. Scope

This Procedure applies to the management of outstanding debt relating to customers’ fixed and variable charges, Sundry Debtors, Houseboats, Bulk Water, interest and miscellaneous charges. This procedure has been developed to meet the requirements and standards of the Essential Services Commission (ESC) and the GMW Customer Charter, and to detail the assistance we will provide to customers who are assessed as being in genuine financial hardship.

3. Purpose

The purpose is to establish a transparent, fair and equitable debt management approach to customers to assist and support them.

4. Procedure

Debt Management and Stop Supply Procedure

GMW's rights and responsibilities

These are the actions GMW will take that ensure we meet our rights and responsibilities when dealing with customers’ debt.

GMW will:

  • Engage in a genuine discussion with our customers to determine the best option for payment, recognising that some customers have short term financial issues which may be resolved in the near to medium term future where others may require a different type of approach for long term or ongoing financial issues
  • Suspend formal debt recovery processes if a flexible payment plan is established with a customer
  • Provide this procedure and other payment assistance information to customers on request
  • Offer appropriate support and assistance to customers who are experiencing family violence

Customers' rights and responsibilities

Customers can expect to:

  • Be advised about flexible payment options
  • Be offered a flexible payment plan which they can reasonably afford and which productively reduces their debt.
  • Be treated respectfully and sensitively on a case by case basis and have their circumstances kept confidential
  • Renegotiate the amount of a payment plan if there is a change in their circumstances
  • Be advised about the availability of accredited financial counselling services
  • Not be subjected to legal action and additional debt recovery costs, whilst they continue to make payments according to an agreed flexible payment plan
  • Speak with a GMW team member who is familiar with their situation in order to re-negotiate their flexible payment plan if a payment has been missed or is likely to be missed
  • Receive a copy of this procedure on request
  • Be advised about their right to lodge a complaint with the Energy and Water Ombudsman Victoria (EWOV) if their debt payment issue is not resolved in accordance with this procedure.

Payment difficulties (ESC Code 9.1)

If a customer is experiencing difficulty paying their account, they can contact us to discuss alternative payment options. GMW will provide customers who are having payment difficulties or suffering financial hardship with information relating to programs to assist in the payment of their account on a case-by-case basis.

This includes information on programs relating to:

  • Flexible payment plans
  • Payment extensions
  • Our hardship procedure.

Flexible payment plans (ESC Code 9.1 (c))

At any stage a customer who foresees that they may have difficulty in paying their account may enter into a flexible payment plan. This arrangement allows for a flexible payment schedule to be agreed upon which takes into account the individual needs of the customer and ensures the account is paid in full within the parameters of:

Extension of up to 1 month

An extension of up to 1 month from the date of the customer contact for the account to be paid in full provided a previous extension has not been granted.

Arrangement of up to 6 months that results in full payment

A payment arrangement of up to 6 months provided:

  1. It results in full payment; and
  2. At least one payment per month; and
  3. There has not been two or more defaulted arrangements in the past 12 months
Short term arrangement of 3 months that does not result in full payment

A short term arrangement of 3 months provided:

  1. At least one payment per month; and
  2. There has not been two or more defaulted arrangements in the past 12 months; and
  3. The minimum payment per month of 10% of the initial overdue balance
  4. The customer must contact us to renegotiate the arrangement after the 3 months expires

GMW is committed to working with customers to establish a flexible payment plan which is productive and reasonable. GMW will outline the advantages of entering into a flexible payment plan to ensure customers are able to make an informed decision.

If a flexible payment plan is agreed, we will confirm the details in writing within 10 business days and will:

  • State the period over which the customer will pay the agreed amount
  • Specify an amount to be paid in each period.

Customers can ask to re-negotiate their payment plan if their circumstances change.

If a flexible payment plan is established, interest will cease to accrue. Payments will be applied to the debt that has been outstanding the longest.

GMW is not required to offer customers a flexible payment plan if the customer has, in the past 12 months, had two flexible payment plans cancelled due to non-payment - unless the customer provides a fair and reasonable assurance that they will comply with the plan.

Non-payment

Reminder Notice (ECS Code 13.2)

If a customer fails to pay an account by the required date(s), a Reminder Notice will be issued for all outstanding balances and will include the following information:

  • Notification that the bill is overdue and must be paid for the customer to avoid suspension or legal action
  • A revised due date for payment providing an additional six business days
  • A warning of the further action that the water business may take, including (if relevant) referral of any outstanding amount to an external debt collection company for collection
  • Caution that, if legal action is taken, the customer may incur additional costs in relation to those actions
  • The date from which interest may be applied on outstanding amounts, and the percentage interest rate that may be applied
  • Any assistance that is available to customers, including contact information for Energy and Water Ombudsman Victoria (EWOV).
Final Notice (ESC Code 13.3)

If the account remains unpaid after five business days from the Reminder Notice being issued or the customer has not made contact to establish a flexible payment plan, a Final Notice will be issued to the customer stating that further action will be taken if the account remains unpaid after five business days. Warning Notices will include the following information:

  • A revised due date for payment providing an additional six business days
  • Notification of GMW’s intention to suspend supply of water
  • A statement that if legal or restriction action is taken, the customer may incur additional costs in relation to those action.
  • A statement that that the water business might be able to recover outstanding amounts at the time of any sale of the customer’s property (if the customer is also the property owner).
  • Information on programs available to help with payment difficulties
  • Any assistance that is available to customers, including contact information for Energy and Water Ombudsman Victoria (EWOV).

GMW will not refer a customer’s account to a debt collection agency without informing the customer first via the Warning Notice.

Actions relating to non-payment

Suspension of supply (ECS Code 14.1).

Stop Supply

GMW can suspend (stop) a customer’s supply service for non-payment in accordance with the ESC Rural Water Customer Service Code, and section 141(1)(h) of the Water Act 1989.

GMW can suspend (stop) a customer’s supply service for non-payment if:

  • There are outstanding charges on their account greater than $300.00 owing, and
  • More than ten business days have elapsed since the issue of a Reminder Notice, and
  • GMW have issued a Warning Notice and more than five business days have elapsed, and
  • GMW have attempted to contact the customer about the non-payment by phone or by post to warn them of the possibility of a Stop Supply.

Section 141(1)(h) of the Water Act 1989 provides that a Stop Supply can only be made in relation to the supply or delivery of water to the person who owes the outstanding fees and charges. Therefore, we will place a Stop Supply on the customer’s Allocation Bank Account (ABA) as opposed to an individual customer property.

Where a customer has a consolidation account, a Stop Supply will be placed on all ABA’s linked to the person/s who owe the outstanding fees and charges.

A Stop Supply will only be placed on a customer’s ABA after all of the prescribed notices have been issued and the required time frames for payment have expired.

Limits on suspension and legal action (ESC Code 14.3 and 14.4)

GMW will not initiate any suspensions or legal action relating to non-payment if:

  • The amount owed is less than $300, unless the customer has failed to pay consecutive accounts in full during a period of not less than 12 months
  • The customer is eligible for and has lodged an application for a government-funded concession and the application is outstanding
  • The amount in dispute is subject to an unresolved complaint

The first payment of any arrangement must be verified before a Stop Supply will be lifted. If an arrangement is broken by non-payment the Stop Supply will be automatically re-applied to the ABA without notice to the customer. This will occur 5 days after the payment due date to allow for non-work days

There are four ways in which a Stop Supply can be removed:

  • The account must be paid in full; or
  • A minimum of a 10% upfront payment in conjunction with an approved payment arrangement for the arrears that ensures the account is paid in full within 6 months, or;
  • A minimum of a 10% upfront payment in conjunction with an approved payment arrangement that is compliant with the criteria of a 3-month plan (details below); or
  • Approval by the Managing Director, Manager Customer Experience and General Managers based on extenuating circumstances.

The following restrictions also apply for suspensions of supply:

  • It is a Friday, public holiday, weekend, day before a public holiday or after 3:00pm any day
  • It is a day of Total Fire Ban declared by the Country Fire Authority in the area in which the property is located.

This does not restrict GMW’s rights to pursue debt owed to it by a person who is no longer a customer.

Legal action (ESC Code 14.5)

GMW may take legal action for non-payment if:

  • GMW have complied with the steps in the clause ‘Suspension of Supply’ above
  • GMW have notified the customer of the proposed suspension or legal action and the associated costs
  • The customer has been offered a flexible payment plan under the clause ‘Flexible Payment Plans’ and has refused or failed to respond
  • The customer has agreed to a flexible payment plan and has failed to comply with the arrangement.

Removal of suspension (ESC Code 14.6)

GMW will restore a service that was suspended under this clause within one business day of becoming aware that the reason for suspension no longer exists.

If a customer requires water supply following the removal of a suspension, they will be subject to normal water ordering procedures.

Groundwater and unregulated surface water customers

Customers who hold a Licence to Take and Use Water (issued under Section 51 of the Water Act 1989) should be aware that failure to pay their account by the due date will result in a breach of their licence conditions and may result in suspension or cancellation of their licence.

Consolidated accounts

Customers who have multiple accounts consolidated under one customer number will be treated as a single customer for the purpose of debt management.

Additional costs (ESC Code 13.5 and 13.6)

Additional costs incurred by GMW relating to unpaid accounts may be passed on to customers. These include:

    • interest on the overdue account
    • legal costs awarded by a court
    • Bank charges incurred by us due to a dishonoured payment.

Interest (ESC Code 13.4)

GMW may charge interest on outstanding amounts. Prior to applying interest GMW will inform the customer when interest is to be applied to the outstanding amounts. The basis for calculation for the purpose of charging interest on overdue amounts is available by contacting Revenue.

Hardship Procedure

Overview

GMW is committed to supporting customers who are experiencing genuine financial hardship. GMW understands that there are complex factors which impact our customers and acknowledge that from time to time any customer can experience a period of financial hardship. Our hardship procedure aims to strike a balance between providing customers experiencing genuine financial hardship with fair and equitable treatment, while meeting our obligations to our broader customer base to contain debt to appropriate levels.

Purpose

The Hardship Procedure sets out the rights and responsibilities of GMW, in relation to customers who are experiencing genuine financial hardship in paying their account. This procedure aims to ensure that customers identified as experiencing genuine financial hardship are treated fairly and are protected from GMW’s debt recovery actions while they continue to make payments according to an agreed schedule. This procedure enables GMW to make determinations about financial hardship on an individual basis and negotiate tailored solutions.

What is financial hardship?

A customer experiencing financial hardship is someone whose intention is to pay, but who does not have the financial capacity to make the required payments within the specified time.

Financial hardship may arise as a result of, or be identified as, a person experiencing:

  • Sudden changes in economic circumstances
  • A sudden change in circumstances (unemployment, ill health, separation, a death in the family, a loss resulting from an accident)
  • An ongoing illness
  • Eligibility for a Government payment (for example, Centrelink benefits, etc.) due to low income
  • Ongoing impacts of a natural disaster (Covid-19, Flood, Bushfire etc.).

Financial hardship can be temporary or long-term.

Depending on the type of hardship being experienced, customers may have different needs and require different solutions.

Accessing financial hardship

GMW will work with customers on an individual basis to determine the nature of their financial hardship. This assessment will include consideration of whether a customer is in receipt of government payments, the expected period of the hardship, the information provided by financial counselling services and a range of other matters. Decisions about granting special arrangements on the basis of financial hardship are made on a case by case basis. Appropriate Memo to be raised in P&R with a review date.

Financial counselling

GMW can refer customers to an independent financial counselling service. Financial counsellors are able to provide detailed information to customers about the rights and options available to them. Customers can access financial counsellors to discuss any financial matters that may be causing them difficulty or distress.

If a customer is experiencing hardship, their situation can be re-assessed by the Manager Customer Experience, Revenue Manager and the Revenue Coordinator. For example, a Stop Supply may be lifted when:

  • A customer is experiencing cash flow problems and their crop is at risk of failure, and
  • The customer agrees to pay their account in full or enter into a payment arrangement within 7 days.

However, the Stop Supply will be immediately reinstated without further notice if the customer fails to adhere to the 7-day agreement.

Sundry debtors and Miscellaneous Fee

Sundry and Miscellaneous Charges are not associated to land and need to be treated differently from our Tariff charges. If a customer fails to pay their debtor invoice and has not entered into an acceptable Flexible payment arrangement as outlined above, GMW will send out a Statement outlining their overdue amounts.

If the customer fails to pay after the statement they will be contacted by the Revenue Team and if the charges still remain unpaid the matter will be referred to the GMW Staff who originally requested the charges to be raised.

When the sundry invoice relates to recoverable works, the work will not commence until the invoice(s) have been paid in full and any customer that fails to pay will have their invoice and works cancelled.

GMW may also commence legal action for non-payment.

4. Responsibilities

Responsibilities table
Responsibility Who
Approval  General Manager Customers, Stakeholders & Communities
Ownership and implementation General Manager Business & Finance

5. Definitions

  • GMW means Goulburn-Murray Water.
  • ESC means Essential Services Commission Victoria.

6. Associated documents

  • GMW Customer Charter
  • Adjustment of Debt Procedure
  • Prescribed Billing Procedure.

If you require a printable version of the Debt Management, Stop Supply and Hardship Procedure, please phone GMW on 1800 013 357 and quote the reference A4005359.