The Swings and the Roundabouts !

Electricity suppliers are toying with the idea of changing to a monthly billing cycle to help customers better manage their energy use.   Many complain that the present three monthly cycle delivers " bill shock " and is hard to fit in with a weekly pay packet.

Quarterly billing is certainly the exception and is the traditional method for council rates, electricity, gas and water bills.    Most other amenities are already on a monthly billing cycle and these include phone bills, credit card bills, newspaper deliveries,  pay TV, Internet charges - the list seems endless.

What people need to understand is that a change to a monthly billing cycle will not be without cost - and that cost will most likely be added to their energy bills.   The ever rising cost of postage will need to be taken into account and the sheer magnitude of the task of preparing and sending out a monthly bill to every retail customer in Australia will be enormous - and require additional clerical staff.

Just think of the task required if that monthly cycle required the electricity meter to be read monthly - which it 'isnt  under the present regime.    A vast number of bills sent out under the present quarterly regime are " estimated " usage.   The supplier uses an algorithm to combine seasonal and historical previous use to arrive at the likely usage for each customer.

Perhaps this change to a monthly billing cycle is an over-reaction !   Power bills of all kinds have certainly been rising sharply, but the vast majority of customers are coping with this in an orderly manner. Perhaps we would do better to offer a monthly or even a weekly option to those who would gain a benefit from such an action.

That algorithm could easily estimate the likely monthly or weekly bill and it would be a simple matter to supply a permanent card containing a bar code for that amount, allowing the customer to present it and pay on a weekly or monthly basis at their local post office,  and then balance up the " unders or overs " at the end of each billing cycle.

The problem with a change from quarterly to monthly for energy bills - is the fact that it will be applied to all customers and seems to be a form of " over kill ".   A big jump in overheads for billing costs which will only really benefit a small percentage of total customers - but that cost jump will need to be factored into every bottom line !

Seems to be a case of what we win on the swings, we lose on the roundabouts.   Maybe a better option to think outside the nine dots - and offer a form of relief to those who really need it !