ENERGY retailer AGL is being accused of making "intimidatory" and possibly illegal automated phone calls to customers just two days after missed bill payments.

The calls threaten customers with “disconnection, further charges including legal costs and a possible default listing” if they don’t pay up.

One of the company’s most senior managers, group general manager Retail Energy Stephen Mikkelsen, has conceded the calls are “obnoxious” and “too heavy-handed” and vowed to change the company’s escalation processes.

His admission to an irate customer comes as South Australian households struggle with spiralling power bills.

The Advertiser yesterday revealed more than 2660 homes had their power cut off in the first quarter of this year.

An AGL customer who received an automated call just two days after his quarterly bill was due to be paid said he felt “threatened and appalled”.

media_camera AGL has been hit with a

“I worry for anyone slightly less robust than me who received a call like that,’’ the customer said.

“The phone call mentions disconnection, possible legal costs and the possibility of your credit rating being damaged. These are things that can change a person’s life - it is a long way from a reasonable approach.’’

The South Australian Council of Social Service says the calls are “intimidatory”.

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The council says they may be in breach of National Energy Retail Rules.

In part the call says: “... failure to do so (pay the bill within the designated time) could result in disconnection, further charges including legal costs and a possible default listing.

“A default listing could affect your credit history and your ability to attain credit in the future...’’

“These are not empty threats,’’ SACOSS executive director Ross Womersley said.

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“With something framed in an intimidatory way like that it is possible the person on the other end of the phone would have one of two reactions.

“One would be to freak out completely and, two, maybe commit to something they simply can’t afford to do.

“We strongly advise anybody who receives such a call, and had the fear of the electricity god put through them, to contact the Energy and Water Ombudsman of SA.

“This is a prime example about why retailers should not be trusted with decisions about disconnections.”

“This is a prime example about why retailers should not be trusted with decisions about disconnections.’’

A record 28,857 South Australian households were on instalment payment plans at the end of last year because they were struggling to pay their bills. AGL, meanwhile, made a $365 million profit, or $2 million a day, in the first half of the last financial year. AGL has 30 per cent of household electricity customers in SA and 50 per cent of gas customers.

Annual AGL residential bills in South Australia have risen over 60 per cent between 2007/08 to 2011/12

The customer raised his concerns with Mr Mikkelsen, who is a a lead candidate to succeed present AGL managing director Michael Fraser, during aavish dinner arranged for 53 randomly-selected AGL customers in Adelaide last week.

He attended AGL’s “Customer Face 2 Face” session last Wednesday night at the Adelaide Pavillion, in the South Parklands.

Customers were selected at random from within a 4-8km radius of the venue.

They were joined by 46 AGL employees.

As a gesture of gratitude, customers were given a $50 Coles Myer Voucher, an AGL Family & Friends discount offer, and an Energy Efficiency Night Light.

“It was all very nice but I was keener to talk about my phone call,’’ the customer said.“I played them the audio and I think it’s fair to say it left an impression with some of the AGL people hosting the event,” the customer said.

“From the looks on their faces I think the left hand of the company has no idea what the right hand is doing.’’

Since the function, the customer has received an email from Stephen Mikkelsen, group general manager retail energy at AGL, agreeing the call is “obnoxious’’ and “too heavy handed for customer only two days overdue’’.

Mr Mikkelsen responded with an email that in part reads: “As I’m sure you understand, eventually the escalation will get to the point where it lays out the consequences of not paying, but in the future this will not be until it is at least one month overdue.”

AGL says it will take another four weeks to make these changes.

Mr Mikkelsen’s email ends:

“Without feedback we find it difficult to know when we are getting it wrong. Shortly, our customers who simply missed the payment by a couple of days will have you to thank for a more friendly, less obnoxious message.’’

The customer is not convinced.

“I paid my bill in full on August 8 but on August 14 I had another communication from AGL demanding I pay my bill,’’ he said.

“And this time they said I would be charged a $14 late payment fee.

“None of that did anything to improve my mood or think the company has got a grip on this matter.’’

Mr Womersley said electricitypower companies were meant to offer hardship programs that include instalment plans to assist people with bill paying.

The Advertiser has contacted the Australian Energy Regulator for comment on the legality of phone calls but is yet to receive a response.

The number of SA householders on hardship programs rose from 4370 to a record 5017 last year.

Disconnections for non-payment also increased, up by 13 per cent - or more than 600 - in the 12 months to December last year.

“There was no sense from that AGL call that if you were in genuine hardship the company would be prepared to bend over backwards to support you through,” Mr Womersley added.

“You don’t even get to talk to a real human being.’’