In this section:
Systemic issues | Affordability | Energy disconnections | Retail competition | Progress in consumer protection and service

Systemic issues

EWON reports to providers and other stakeholders on issues highlighted through our investigation of customer complaints which potentially require a systemic response, in relation to a particular provider, to the electricity, gas or water industries, or to utilities overall.

We have found that raising issues through reports to individual providers can reinforce the messages they receive from their internal complaint handling processes, and creates an opportunity for ongoing discussion to address and resolve complex matters.

As in previous years a major source of complaints to EWON involve issues of billing and affordability. While the establishment by providers of assistance programs for customers in financial hardship has started to address these issues, high disconnection rates show that there is still a long way to go. We will continue to advise providers of any barriers faced by customers in trying to access these programs and identify potential areas for improvement when dealing with disadvantaged customers. While EWON's primary role is dispute resolution for utility customers, we believe that preventative measures and working with the providers and other stakeholders to address systemic issues is equally important.

Some of the issues raised in 2004-2005 were:

• high rates of electricity disconnection in some areas
• high levels of energy debt
• inconsistent internal referrals to providers' customer assistance programs
• back billing due to delays in meter reading
• inappropriate energy marketing practices
• limited access to payment options such as Centrepay
• inconsistency in dealing with claims for compensation
• inconsistency in backdating of pensioner rebates
• problems with bill averaging or 'smoothing' programs
• disputed responsibility for network assets on private property

Affordability

The year 2004-2005 saw all the major electricity and gas companies with customer assistance programs in place. These programs have generally included the addition of Centrepay as a payment option for customers. These initiatives have meant that customers with financial difficulties have a greater chance of avoiding disconnection. Looking to the future, we hope the development of 'best practice' in delivering these assistance programs in a direct and timely manner to customers should reduce the need for customers and their advocates to contact EWON for help.

Energy disconnection

Disconnection of electricity or gas supply continues to be a problem for many customers who fall behind in payment of their accounts because of affordability issues. Unfortunately, official figures show that disconnection rates for electricity have risen significantly over recent years. This is reflected in customer contacts with EWON.

• At least 30% of all EWON matters related to impending or actual disconnection of electricity or gas. A total of 1,021 customers came to EWON because they had already been disconnected - an increase of 16.1% from 2003-2004
• Over 980 customers were denied an instalment plan or extension of time to pay
• 80% of complaints from customers who identified as Aboriginal or Torres Strait Islander involved difficulty in payment of electricity or gas accounts

Disconnection/restriction matters per industry type:

• Electricity 35% of matters
• Gas 31% of matters
• Water 9% of matters

Issues raised by customers relating to disconnection:

• Impending or actual disconnection 2,531 issues
• Account arrears 2,415 issues

Of all matters brought to EWON (total matters 8,259)

• Disconnected customers 1,021
• Disconnection impending 1,510

Retail competition

Customers continued to raise issues about marketing practices for retail energy contracts. We saw an increase in retail competition issues from 980 in the previous year to 1,220 in 2004-2005.

We have found retailers to be responsive to customer complaints about marketing issues, however unfair marketing practices have persisted. We continue to raise marketing and transfer complaints with the providers and with the Independent Pricing and Regulatory Tribunal and the Office of Fair Trading.

Retail competition issues

• Marketing = 298
• Contract terms, termination fees = 278
• Information/enquiries = 211
• Billing = 181
• Transfer =131
• Site ownership and other issues = 121

Progress in consumer protection and service

EWON regularly contributes to industry policy and regulatory reviews. Our submissions this year included responses to:

• IPART Review of Financial Aspects of the Ambulance Service of NSW, June 2005
• IPART Investigation into Water and Wastewater Service Provision in the Greater Sydney Region, June 2005
• EnergyAustralia Network Public Consultation New Network Prices 2005-2006, April 2005
• New South Wales Government Energy Directions Green Paper, February 2005
• IPART Review of Metropolitan Water Agency Prices, December 2004
• DEUS Review of Arrangements for Guaranteed Customer Service Standards Issues Paper, December 2004
• IPART Water Demand and Supply Balance: End-of-term Review of the Operating Licence for Sydney Water, November 2004
• Productivity Commission Issues Paper for the Inquiry into the Economic and Environmental Potential Offered by Energy Efficiency, November 2004

During the year we finalised our research into service delivery issues with EAPA vouchers. We initially undertook the research following numerous contacts from customers and community welfare organisations about difficulties accessing the EAPA program. We found that a number of customers, particularly in rural and remote areas, were not able to obtain EAPA or had limited access to agencies distributing vouchers, and some community agencies were running out of vouchers and therefore unable to help customers in a crisis. Our findings were distributed to key Government and community stakeholders, and to utility providers.

While the previous year's focus was on gas and electricity prices, 2004-2005 saw public, political and media attention move to water issues, with debate about infrastructure, pricing issues and environmental concerns. EWON was able to draw on the experience of customers who contacted us and contribute to a number of issues papers concerning water.

EWON raised questions about an overemphasis on pricing to achieve demand management. We are especially concerned about how this approach affects low income consumers, given their limited discretionary usage and access to efficient appliances, and the impact on tenants who have little or no control over maintenance and repairs to water infrastructure.

Our response to the NSW Government Energy Directions Green Paper focused on the need for strong consumer protection provisions and again emphasised the importance of a broad rather than just a price-focussed approach to demand management.

As a member of the Australia and New Zealand Energy and Water Ombudsman Network (ANZEWON), we continued to contribute to a process of working towards as much consistency as possible with other energy and water ombudsman schemes.

As a member of the Australian and New Zealand Ombudsman Association (ANZOA), EWON is working with other industry and parliamentary ombudsman schemes on issues including internal review of ombudsman decisions and the response to systemic issues. This work aims to identify and define best industry practice within a broad dispute resolution network.