Energ-E-News July 2009 1. QCOSS Energy Project News 1.1 Subscribe to Energ-E-News Welcome to the second edition of Energ-E-News, our monthly newsletter on the QCOSS Energy Consumer Advocacy Project and other energy consumer news. If you have had this newsletter forwarded to you and wish to subscribe directly, please email nadinel@qcoss.org.au. 1.2 QCOSS Energy Project Update The report from the Energy Affordability and Disadvantage conference has been completed, and is now available on the QCOSS website, at the link below. Following on from the conference, Linda Parmenter met with representatives from public housing tenants associations to discuss the energy affordability issues facing public housing tenants. Some of the concerns raised include the low energy efficiency of older public housing dwellings, reliance on bulk electric or gas hot water systems with associated pricing issues, and lack of access to energy efficiency programs. QCOSS is developing its policy position on energy issues in public housing and is looking into competition issues relating to bulk gas hot water systems. We have previously called for the state government to retrofit public housing (see our position paper on Energy, Fuel Poverty and Climate Change). The QCOSS Energy Project team has also been busy responding to Queensland Competition Authority (QCA) reviews into the time limits applying to claims for Guaranteed Service Level payments, minimum terms and conditions for retail contracts, and electricity pricing and tariff structures. More information about these last two reviews, which are taking submissions until mid-july, is provided below. The Australian Energy Regulator (AER) has commenced the review process for the determination of distribution prices for 2010-2015. Distribution charges are a significant component of electricity prices, accounting for about 40% of consumers electricity bills. QCOSS successfully applied to the national Advocacy Panel for funding to engage a consultant to assist with consumer input into the determination process, and we will provide updates as this project progresses. MORE INFORMATION: To access the Energy Affordability and Disadvantage Conference report and presentations, click here. 1.3 Tell us your views We would like to get more input from the community sector for our energy consumer advocacy work. If you have feedback, suggestions, or want to raise energy issues that come up in your work, please contact Nadine Lester by emailing nadinel@qcoss.org.au or phone 07 3004 6940.
2. Energy News 2.1 Energy announcements in State Budget The Queensland Government has announced expenditure of $50.88 million over 4 years to increase the Electricity Rebate for pensioners and Electricity Life Support Concession Scheme. This will see the Electricity Rebate increase from $165 to $190 per year. The Electricity Life Support Concession will increase from $336 to $388 per year for recipients with an oxygen concentrator, and $225 to $260 per year for those with a home based kidney dialysis machine. QCOSS has been arguing for the concessions framework to be broadened to assist vulnerable and low-income Queenslanders with rising energy costs. We have previously called for the government to consider additional concessions for low income or vulnerable households, and next month will be meeting with advocates campaigning for a medical cooling rebate to be introduced in Queensland. QCOSS has also expressed disappointment that although the State Budget included funding for small and medium businesses and government to improve energy efficiency, only limited funding has been made available for energy efficiency strategies for low income households. QCOSS has previously called on the government to implement measures such as an energy efficiency appliance improvement program and retrofitting public housing. We do, however, welcome the inclusion of funding for of the Solar Hot Water Program with additional subsidies for low income households as promised during the state election. See item 2.3 below for more information on this program. MORE INFORMATION: QCOSS s commentary on the State Budget 2009-10 is available here. More information about state government concessions is available here. 2.2 Procedures required before disconnection Knowing the procedures energy suppliers are required to follow before disconnecting a customer for non-payment of an account can help consumers who are experiencing hardship in negotiating with their retailer. The Queensland Electricity Industry Code requires that, when a customer is unable to pay a bill due to insufficient income, the retailer must: Use their best endeavours to contact the customer and offer alternative payment options and information on concessions, rebates and grants to which the customer may be entitled; Give the customer a reminder notice; After the due date of the reminder notice, give the customer a written disconnection warning providing not less than 5 business days notice of its intention to disconnect. The disconnection warning must also contain details of the Energy Ombudsman Queensland. Even if the customer has not taken reasonable steps towards paying their account, their supplier must not disconnect their electricity in the following circumstances: When the outstanding balance is less than $300 and the customer has agreed to pay the amount; After 3pm on a weekday, or at any time on a Friday, weekend, public holiday, or the day before a public holiday; Between 20 th and 31 st December; When the customer has lodged a complaint with the Energy Ombudsman directly related to the reason for disconnection;
When a customer s application for a concession, grant, or rebate is being still being processed; When someone living at the premises is dependent on life support equipment. If a customer s electricity supply is disconnected without the required procedures being followed, they may be entitled to a payment for wrongful disconnection. MORE INFORMATION: To learn more about the procedures for disconnection, see the Queensland Electricity Industry Code. 2.3 Queensland Solar Hot Water Program The Queensland Government has opened the application process for the Queensland Solar Hot Water Program, and released further information about eligibility. The program will provide Queenslanders with solar or heat pump hot water systems, professionally installed and with warranty, for $100 for low income earners and $500 for other households. To participate, applicants must be eligible for the Federal Government s Solar Hot Water Rebate and be replacing an existing electric hot water system. Holders of a Centrelink Pension Concession Card, Centrelink Low Income Health Care Card, or Commonwealth Seniors Health Card will be eligible for the low income rate of $100. Applicants should note, however, that additional costs such as council inspection fees are not covered by the program. Participants will also have to apply for the Federal rebate after their hot water system is installed, and reimburse the Queensland program once the $1600 rebate is received. If they are deemed ineligible for the Federal rebate after having the hot water system installed, they will have to bear the $1600 cost. Interested people can register for the program at the Office of Clean Energy website or by calling 13 25 23. Application packs are being sent to those who have already registered starting this week. Brisbane City Council has announced that it will provide a $50 voucher to subsidise the plumbing inspection fee for local residents who use the Solar Hot Water Program, although full details are yet to be announced. The Council s Solar Hot Water Rebate program closed on 1 July with the opening of the state government program. Brisbane residents who purchased a solar hot water system prior to this date may still apply for the council rebate before 30 September 2009. For more information, see the Brisbane City Council website. MORE INFORMATION: To find out more about the Queensland Solar Hot Water Program, click here. 2.4 Review of Electricity Pricing and Tariff Structures The Queensland Competition Authority (QCA) has commenced a two-stage review into electricity pricing and tariff structures in Queensland. The first stage will look at the current methodology the QCA uses to set electricity prices and consider alternative methods which may be used to reflect the cost of supplying electricity and environmental obligations, and assess whether current tariff structures are fully cost reflective, provide appropriate price signals to consumers, and facilitate retail competition. This stage is due to be completed by 31 August. The second stage of the review, due to be completed by November, will look at alternative retail tariff structures which may assist in the long term management of electricity demand. The QCA has released a request for comments on the first stage of the review and is taking submissions until Thursday 16 th July. QCOSS will be arguing for progressive pricing structures that ensure essential electricity usage remains affordable, while encouraging energy efficiency in higher
use customers. However, some low income households with high usage will need assistance to improve their energy efficiency, while concessions are also needed for households that cannot reduce their energy usage, for example due to unemployment or medical needs. MORE INFORMATION: To find out more about the Review of Electricity Pricing and Tariff Structures and download the request for comments paper, go to the QCA website. 2.5 Review of Minimum Terms and Conditions for Retail Contracts Requiring Prior Notice for Price Changes The QCA has also commenced a review into minimum terms and conditions for retail contracts in the Queensland Electricity Industry Code. The Queensland government requested the review following an incident in January this year in which a retailer increased prices for its customers on market contracts, backdating the price increase to 1 January, and a subsequent Energy Ombudsman Queensland investigation which found that the retailer s actions did not breach the Code. The QCA has released an interim consultation paper asking interested parties whether the Electricity Industry Code should be amended to require electricity retailers to give customers prior written notice of any price changes, and if so, what changes should be made to the Code. Submissions on this review close on Friday, 17 th July. QCOSS will make a response to this review arguing for the minimum terms and conditions for retail contracts to include a requirement that retailers give their customers written notice at least 20 business days before price changes come into effect. We will also be arguing that retailers should not be permitted to use early termination fees to tie customers to contracts where prices have increased during the contract term. MORE INFORMATION: To find out more about the Review of Minimum Terms and Conditions for Retail Contracts and download the interim consultation notice, click here. 2.6 Inquiry into Energy Efficiency Improvements The Queensland Parliament s Environment and Resources Committee (ERC) is conducting an inquiry into the economic and environmental potential of energy efficiency improvements for households, communities, industry and government. The inquiry will consider costs and benefits, potential impediments, and policy options for improving energy efficiency, with an emphasis on initiatives that are cost effective for individuals, and the role of Commonwealth Government initiatives, including the Carbon Pollution Reduction Scheme, in encouraging energy efficiency. Seminars on energy efficiency options will be held in Townsville and Brisbane, with presentations to be made available on the ERC website, and a public hearing will be held in Brisbane in September. Submissions will be accepted until 14 August, with the Committee due to report to Parliament by 30 November 2009. An issues paper and guidelines for making submissions are available from the ERC website. MORE INFORMATION: For more information about the inquiry, and to download the issues paper, click here. 2.7 Report on African experience of the contestable energy market in Melbourne A report published by Victoria s Essential Services Commission in June raises concerns about difficulties faced by recently settled African migrants in dealing with
energy issues. The Footscray Community Legal Centre and Financial Counselling Service prepared the report after observing a sharp increase in the proportion of clients presenting with energy problems following the commencement of a financial counselling and community education program targeting the African community. Financial counsellors working with African clients identified a number of systemic issues, including door to door sales people employing unethical tactics in dealing with vulnerable consumers, the inability of consumers who are illiterate to understand contracts and other information provided in written form, difficulties experienced by consumers with little English in communicating with utility companies, lack of education in energy efficiency, and receiving multiple bills due to separate invoicing for different services by the same retailer or problems transferring accounts. Financial counsellors also encountered problems when dealing with utility companies on clients behalf, such as delays, difficulty contacting hardship teams, and requests for unnecessary information. After receiving the report, the Essential Services Commission facilitated workshops between African community members, consumer representatives, and energy retailers to discuss these issues and identify possible solutions. MORE INFORMATION: To read the Footscray Community Legal Centre and Financial Counselling Service report and the outcomes of the workshops, click here. 2.8 Environmental grants available in regional Queensland Applications for Ergon Energy s Envirofund grants program close on 31 st July. The Envirofund program will provide grants ranging from $200 up to more than $20,000 to community groups and organisations in regional Queensland undertaking energy conservation and other environmental initiatives in their local communities. Projects may include programs for reducing energy consumption or greenhouse gas emissions, promoting behavioural change around energy use, promoting renewable energy alternatives, protecting, maintaining or re-establishing natural environments in community spaces, or protecting wildlife. Although other environmental initiatives will be considered, projects that focus on energy conservation will be given priority. MORE INFORMATION: For more information about the Envirofund program or to download an application pack, click here. 2.9 Queensland Community Climate Summit 2009 The Queensland Community Climate Summit aims to bring individuals and community groups with an interest in climate change together to build the Queensland climate change movement and plan future action. Formation of a state climate change network will be one of the items discussed at the summit. When: 25 th & 26 th July, 9am to 5pm Where: Innes Room, University of Queensland, St Lucia campus Cost: Free The summit organising team recognises that climate change relates to structural inequality as well as environmental concerns, and encourage all groups and individuals interested in community and environmental sustainability to participate in the summit. MORE INFORMATION: For more information or to register for the climate summit, click here, or email qld@climatesummit.org.au.
3. Calendar 16 July Due date for submissions to the first stage of the QCA s review of electricity pricing and tariff structures 17 July Due date for responses to the QCA s proposed amendments to the Electricity Industry Code requiring prior notice for price changes 24 July Inquiry into Energy Efficiency Improvements Townsville seminar 25-26 July Queensland Community Climate Summit 31 July Closing date for Envirofund grant applications 7 August Inquiry into Energy Efficiency Improvements Brisbane seminar 14 August Closing date for submissions to the Inquiry into Energy Efficiency Improvements 4 September Public hearing Inquiry into Energy Efficiency Improvements