Staying connected: improving outcomes for vulnerable

consumers of energy + waterJo BenvenutiExecutive OfficerConsumer Utilities Advocacy Centre

About CUAC

• Established in 2002 to:

Represent all Victorian energy

and water consumers in policy

and regulatory processes

Facilitate and undertake research

on consumer utilities issues

Monitor grassroots consumer utilities

issues with particular regard for

low-income, disadvantaged and

rural consumers

Higher energy prices

Residential electricity prices up avg. 22% in 2012 up 65% since 2008/2009

Residential gas prices up 14% 2012 up 38% since 2008/2009

Source: ESC Energy retailers comparative performance report – pricing 2012/2013

Savings to be made in market offers

Consumers are accessing market offers

77% have moved to market offer 22% remain on standing offer

Source: Wallis Strategic market and social researchVictorians’ Experience of the Electricity Market 2013 – Final report

Consumers increasingly don’t understand market offers

On scale of 1 to 10 - average score for ability to understand pricing offer made: 6.00 in 2004 4.7 in 2013.

Source: Wallis Strategic market and social researchVictorians’ Experience of the Electricity Market 2013 – Final report

Source: Improving Energy market Competition Through Consumer Participation A CUAC Research Report December 2011

Reported incidence of common misleading sales tactics at the door

0%5%

10%15%20%25%30%35%

Source: Improving Energy market Competition Through Consumer Participation - A CUAC Research Report, December 2011

Consumer engagement with Victorian retail energy market

Find Understand Compare0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Switchers' level of ease in finding, understanding and comparing offer information

Easy or very easyNeither easy nor difficultDifficult or very difficultDon't know/unsure

Offer information

Perc

ent o

f res

pond

ents

Water price increase

Metro prices·Up 25% from July 2013 No further increases to 2018 $5.25m hardship allowance

Regional and rural prices Smaller increases, but some consumers paying more than metro

Price Review 2013: Urban WaterBusinesses – Final Decision

Challenges:

Water restrictions and legal actions trending up from low base

Initiatives: Vulnerable customer taskforce Working with community agencies Hardship initiatives Transparency

Energy disconnections trending up Payment plans and hardship plans stable

Challenges:

Energy hardship plans

18,879 households on hardship plans in 2012

8000 (42%) concession cardholders

3806 (20%) left plan with agreement of retailer

48% left plan because they didn’t comply

debt on entering plan increasing

Source: ESC Comparative performance report 2011-12 – Customer service

Impacts of price increase on low income households:

used a range of measures to reduce energy consumption

switched companies to reduce bills

Source: Dr Lynne Chester, University of Sydney: The Impacts and Consequences for Low-Income Australian Households of Rising Energy Prices

Findings

energy inefficient appliances and housing high awareness of energy efficiency low awareness of government assistance hardship plans don’t reflect capacity to pay lack internet access (1.5m across Australia) long waiting times contacting retailers on high cost mobile phones difficult to access assistance as self identify required - need to have information

Source: Dr Lynne Chester, University of Sydney: The Impacts and Consequences for Low-Income Australian Households of Rising Energy Prices

Conclusion

Need sustainable pensions and benefits Automatic systems for concession access Partnership: gov, industry, regulators, community Review effectiveness of hardship plans

Visit www.energyinfohub.org.au