Energy & Water Ombudsman NSW Annual Report 2007-2008
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Contents
Ombudsman's report
About us
Our work this year
Complaint statistics
Consumer issues
Working with stakeholders
Community outreach
Case studies
Anniversary retrospective
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Media release
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Annual report 2007 | 2008

 

10th anniversary retrospective

Our beginnings ten years ago

gae pincus, clare petre, michael sinclairEWON began as the Energy Industry Ombudsman NSW (EION) and was formally launched by the Minister for Energy on 9 June 1998.

The scheme was established by the six Government-owned electricity providers at the time and TransGrid, the transmission company, with the support of the Electricity Association of New South Wales.

A working group representing the energy industry, consumers, small
business and government advised on EWON’s Constitution and processes. The aim was to provide electricity and gas customers with an independent, free and accessible dispute resolution service.

When EION began operation it only covered electricity providers. Its jurisdiction expanded after Sydney Water joined in December 1999 and EION became EWON, the Energy & Water Ombudsman NSW.

In the following year, 2000, AGL became the first gas provider to join the scheme. Up to this time membership of the scheme had been voluntary but through changes in legislation in 2001, it became a licence condition for all energy retailers supplying small customers in New South Wales to join the approved ombudsman scheme.

The requirement for EWON membership is also now written into the licence conditions of some water providers.

As required by the EWON Constitution, a Board of member providers is responsible for the scheme’s corporate governance and funding. A Council, representing the interests of consumers, small business, and member
providers, oversees EWON’s policies and strategic direction.

Clare Petre was appointed Energy Ombudsman in April 1998 and she has overseen the organisation’s development over its first decade.

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Complaints and milestones 1998-2008

Click here to view a larger image of the graph below

milestones

Year Complaints Milestone
1998-1999
2730
EWON officially launched 9 June 1998
1999-2000
3648
Sydney Water joins the scheme
2000-2001
4344
Gas retailers join the scheme
2001-2002
4908
NSW energy market open to full retail compeition
2002-2003
6242
Hunter Water and second-tier retailers join the scheme
2003-2004
8568
Increase in affordability and disconnection complaints
2004-2005
8259
Enquiries decrease, complex investigations increase
2005-2006
7624
Increase in complaints about energy marketing
2006-2007
8641
Retail competition overtakes billing as the primary complaint issue
2007-2008
8913
Billing and credit complaints increase in line with economic conditions

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Response to consumer issues

From its inception, EWON has reported to providers and other stakeholders on systemic issues identified in our investigation of customer complaints. These issues may have related to a particular provider, or to the electricity, gas or water industries, or to utilities overall.

In EWON’s first years of operation, the clear issue that required a systemic response was financial hardship and disconnection. To address this, EWON hosted regular forums which brought together representatives from industry, community and government. At the forums participants discussed support for customers who were struggling to pay utility accounts and ways of reducing the high rate of energy disconnection in New South Wales. A customer hardship forum which EWON initiated in 2004 continues to operate today under the auspices of the energy and water retailers.

Where appropriate EWON has promoted best practice regulation and we welcomed the New South Wales regulatory requirement for all energy retailers to have a hardship charter and offer customers payment plans. More recently, EWON supported the inclusion of customer assistance measures into a new national consumer protection framework.

Overall, EWON’s approach to working with our member providers has helped to promote best practice in customer service. By raising provider-specific issues in our reports to individual members, we have also helped reinforce the information they receive from their internal complaint handling processes. This has created opportunities for ongoing discussion to address and resolve complex matters. Our reports to members have become an essential part in working with them to address customer concerns.

While EWON’s primary role remains that of dispute resolution for utility customers, our work to prevent complaints is equally important. Our work in raising systemic issues with key stakeholders such as the Independent Pricing and Regulatory Tribunal, has seen us extend our reporting function and communicate customer concerns to a broader audience.

Over the years EWON has looked for opportunities to contribute our experience of customer issues to Government processes and reviews. EWON raised a number of concerns with the Unsworth Energy Consultative Reference Committee, which were incorporated into the Committee’s final recommendations. In particular, we highlighted the need for review of the pensioner utility rebate and the Energy Accounts Payment Assistance program.

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Partnerships with stakeholders

Early on, EWON recognised the importance of developing strong links and partnerships with all parties with an interest in consumer issues in the energy and water industries – customers, providers, government, regulators, community organisations, peak bodies and other complaint handling agencies.

To meet our objectives, it has also been important to understand the business environment in which our members operate, the concerns and interests of individual consumers or groups of consumers, and the role that government and regulators play in helping to create a robust industry environment with strong consumer protection measures.

EWON, as the primary place of review for complaints about energy and water providers, has always been well placed to work with all stakeholders to improve customer service standards and consumer protection, in order to reduce or prevent complaints. No one group can do it alone.

In keeping with this approach, each year we have visited different utilities and regions across New South Wales to understand the particular issues facing customers and companies. Distributors such as Country Energy, Integral Energy, EnergyAustralia, Sydney Water, Hunter Water and State Water, have provided our investigations staff with field training that has proved invaluable in the investigation and resolution of customer complaints. Similarly, retail companies have regularly presented to our staff on key policy and process changes regarding pricing, marketing, green energy products, billing systems and customer assistance programs.

Over the past ten years complaints to EWON have highlighted issues that could only be addressed through broad industry discussion. We have hosted a series of forums on key issues including affordability, customer service, complaint handling practices, marketing and business-to-business relationships.

The formal information sharing and referral arrangements we have in place with key government agencies and regulators – Independent Pricing and Regulatory Tribunal, Department of Water and Energy, Office of Fair Trading and NSW Ombudsman – have also been critical to our work.

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Development of our outreach program

EWON’s community outreach activities began in 1998 soon after the
scheme was established, with the aim of promoting the scheme and preventing complaints.

Initially the activities were undertaken by investigations staff, however EWON developed a team dedicated to public and stakeholder relations, community education and service development. The team includes an Indigenous Project Officer whose work is focused on outreach to Aboriginal and Torres Strait Islander communities.

It also became clear soon after EWON began, that we needed to focus outreach activities on culturally and linguistically diverse (CALD) communities. In 1999 EWON launched its first campaign to six major ethnic groups: Arabic, Chinese, Greek, Italian, Spanish and Vietnamese communities. Today EWON has information translated into 29 languages and our work has expanded to include the smaller, emerging ethnic communities.

Over the years EWON has worked with hundreds of workers and advocates in community agencies including legal information centres, neighbourhood centres, Anglicare, Centacare, Creditline, St Vincent de Paul, Salvation Army, Samaritans, The Smith Family, disability services and migrant resource centres. Our Indigenous staff have forged relationships with Aboriginal land councils, and legal and medical services.

We have hosted numerous forums for consumers and advocates on issues such as affordability and sustainability.

We regularly host stalls at diverse community events including multicultural festivals, Yabun, Mardi Gras Fair Day and Seniors Days at the Easter Show.
We also participate in training days for financial counsellors, electorate officers and customer service staff in government services.

The success of our outreach has relied upon community leaders and frontline staff in agencies helping us to spread the word about our service. We thank everyone who has promoted or partnered with EWON to ensure energy and water customers across New South Wales have access to our service.

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Milestones
1996

Structural reform of the electricity industry sees six retailer/distributor entities created as State owned corporations under the Energy Services Corporations Act 1995.

The Electricity Association of NSW, representing the electricity providers, proposes the establishment of an ombudsman scheme similar to the Victorian Energy Industry Ombudsman and other industry dispute resolution schemes.

1997

A working group of industry, government and consumer representatives advises on the structure and operation of the
new scheme.

The Board of Directors of Energy Industry Ombudsman (NSW) Limited, comprising representatives
of all members of the scheme, is
formally established and registered.

1998

The Council of the Energy Industry Ombudsman NSW meets, comprising Chair Gae Pincus and equal representatives of consumer
and industry interests.

Clare Petre is appointed Energy Industry Ombudsman NSW and Helen Swan is appointed Business Manager.
EION is officially launched by the
[then] Minister for Energy, the
Hon Bob Debus on 9th June.

Along with the Victorian and Tasmanian Electricity Ombudsman schemes, EION establishes the National Electricity Ombudsman Network (NEON). This network evolves to become the Australia & New Zealand Energy and Water Ombudsman Network (ANZEWON).
The NSW government regulates to require inclusion of information
about EION on all reminder and disconnection notices.

Consulted with key government and community stakeholders (NCOSS, PIAC, SOCAP) to develop a communications strategy to raise awareness of EWON.

1999

Sydney Water joins the scheme and EION becomes EWON, the Energy & Water Ombudsman NSW.

Implemented the communications strategy which included broad promotion to consumers and visits to regional and rural areas. Forums were held to introduce our services to Arabic, Chinese, Italian and Vietnamese community leaders.

2000

NSW Ombudsman and EWON sign a Memorandum of Understanding.

AGL, a private company gas provider, joins the scheme.

Under the Electricity Supply Amendment Act 2000, it becomes a licence condition for all electricity retailers to join an approved ombudsman scheme. EWON’s jurisdiction is extended to cover electricity issues for residents of residential parks, and small businesses supplied by other exempt retailers.

Promotion to multicultural communities began with information translated into six languages: Arabic, Chinese, Greek, Italian, Spanish and Vietnamese.

2001

Under the Gas Supply Amendment (Retail Competition) Act, it becomes a condition of licence for gas retailers to join an approved ombudsman scheme.
The Minister for Energy approves EWON as the electricity and gas industry ombudsman for NSW.

Hosted the first industry and consumer seminar on payment options for customers in financial hardship.

2002

Office of Fair Trading and EWON sign a Memorandum of Understanding.

The NSW market is opened to full retail competition and second-tier energy retailers join the scheme. Hunter Water joins the scheme.

Conducted community consultation to drought-affected Far West NSW and met with Indigenous community leaders in Kempsey.

2003
Appointed the first Indigenous Project Officer to raise awareness of the scheme in Aboriginal and Torres Islander communities.
2004
Vee Thornbury, a Wiradjuri artist from Dubbo, was commissioned to produce ‘Within Reach’, an artwork telling the story of EWON. EWON hosted a community forum with Professor Tony Vinson to discuss his study on social disadvantage Community Adversity and Resilence. Launched EWON’s
new website with an online complaint form translated into 12 community languages.
2005

The Independent Pricing and Regulatory Tribunal and EWON sign a Memorandum of Understanding.

Began multicultural promotional campaign on SBS radio. Joined the Good Service committee and participated in their first forum for Indigenous consumers in Mt Druitt. Participated in Anti-Poverty Week by hosting a forum in Broken Hill on financial hardship and customer assistance programs. Began working with staff of the Department of Corrective Services and conducted
pre-release information sessions for prisoners.

2006
Coordinated the first joint awareness campaign ‘Speak up!’ on behalf of ANZOA (Australian and New Zealand Ombudsman Association). Hosted the first ‘affordability and sustainability’ forum in Penrith.
2007

Participated in the Minister for Energy’s reference group on consumer protection and the Water Competition Regulation consultation.

Collaborated with NSW Ombudsman to host forums for disability workers. Began outreach to new and emerging migrant communities.

2008
The Ombudsman meets with the Unsworth Committee regarding its review of the impact on consumers of the proposed privatisation of state owned energy retailers.

 

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