When Greater Western Water (GWW) launched its new $103.7 million billing system, it promised an improved experience for 1.43 million Victorians. However, the rollout has turned into a costly fiasco, with errors leading to an estimated $150 million in compensation and written-off bills. The system, which went live on May 29, 2024, has been plagued with issues, and the resolution is not expected until June next year.
A taskforce of 23 people spent six months preparing customer data, and a “tiger team” was tasked with identifying and managing risks before the launch. Despite these preparations, the transition was marred by incomplete plans, insufficient testing, and a failure to address known issues, resulting in a 16-month-long debacle that has enraged customers.
The Launch and Its Immediate Fallout
The new billing system, named CustomerPlace, was intended to integrate data from the merger of City West Water and Western Water in 2021. However, the system failed to function as designed, leading to widespread billing errors. More than 11,000 concession cardholders did not receive their discounts, and 18,000 were overcharged when bills for two quarters were sent simultaneously.
Additional issues included incorrect billing for 9,872 apartment residents and the exposure of personal details for at least 320 customers, raising concerns about identity theft and safety for those affected by family violence. Direct debit customers were also affected, with some not informed about deductions or charged incorrect amounts, leading to a suspension of the direct debit function.
Customer and Operational Impact
The billing errors have had significant consequences for customers and GWW’s operations. Property transactions and development applications have been delayed, and the company has struggled to manage the increased volume of customer complaints. Tony Way, a Richmond resident, expressed his frustration, stating, “There appears to be no end in sight. What a circus.”
GWW has manually corrected errors in 320,000 records but remains uncertain about the total number of inaccuracies. New CEO Craig Dixon, who joined in August, emphasized that resolving billing issues is a priority and assured that customers will not bear the costs through higher bills or reduced services.
Behind the Scenes: Missteps and Missed Opportunities
Two reviews into the saga, along with interviews with key figures, have revealed a series of missteps and missed opportunities that contributed to the botched launch. A “data cleansing taskforce” was established in November 2023 to address inconsistencies in the legacy systems, but critical validation rules were progressively discarded in the rush to launch.
Despite conducting four practice runs, GWW and its contractors never performed full end-to-end testing. A checklist for the transition minimized the seriousness of known problems, and the project scope expanded over time due to new pricing rules introduced in July 2024.
By the Numbers:
- Initial budget for the new billing system: $103.7 million
- 598,828 homes and 55,267 businesses serviced by GWW
- $16.3 million spent on waived bills and hardship credits
- 320 privacy complaints filed
- More than 480,000 customers received late bills between July and November 2024
- Additional staff hired to manage complaints and manual operations
Looking Ahead: Resolving the Crisis
GWW is working with DB Results, Oracle, and other vendors to fix the system. Dixon has not ruled out legal action to recover costs once the system is stabilized. The Energy and Water Ombudsman Victoria has reported a fivefold increase in complaints about GWW, highlighting the urgency of resolving the crisis.
The situation underscores the complexities and risks involved in large-scale IT projects, particularly when merging legacy systems. As GWW continues to address the fallout, the focus remains on ensuring that customers are not further impacted by the ongoing issues.
While Dixon has dismissed the notion that revenue was prioritized over customer service, the debacle serves as a cautionary tale for other public utilities considering similar upgrades. As GWW works towards a resolution, the lessons learned from this experience will likely inform future projects and strategies.
