Annual Report 2019 ABOUT EWOV
Our purpose Our goal Our values Accessible, fair,
To independently and To be a fair, impartial Independence, independent efficiently resolve and highly respected access, equity, quality, disputes between dispute resolution effectiveness, efficiency, customers and energy service community awareness, and efficient and water companies in linkages Victoria and reduce their dispute occurrence resolution
Cynthia Gebert In our report Energy and Water Ombudsman (Victoria)
ABOUT EWOV 1 EWOV acknowledges the Traditional ‘’… we take account of relevant industry codes, good industry Owners of country on which we operate 2018-19 SNAPSHOTS 2 throughout Victoria and recognises their practice and the law, to reach fair and reasonable outcomes ...’’ GOVERNANCE 4 continuing connection to land, waters and culture. We pay our respects to FROM THE OMBUDSMAN 6 Elders past, present and emerging. OUR PERFORMANCE 10 Energy and Water Ombudsman (Victoria) (EWOV) was set EWOV can deal with most issues that arise between CASEWORK AND PROCESS 18 REPORTING RESPONSIBILITIES up in late 1995 as Australia’s first electricity Ombudsman. energy and water customers and companies. Billing is ISSUES AND TRENDS 26 Our Annual Report is prepared and The EWOV dispute resolution scheme opened to full the largest area of complaint, making up 44% of our BILLING 29 distributed in accordance with the operation in May 1996. EWOV’s jurisdiction has since caseload in 2018-19. We also deal with complaints Ombudsman’s responsibilities under expanded to natural gas (1999), water (2001), liquefied about service connection and supply, affordability, CREDIT 32 the EWOV Charter and the Benchmarks petroleum gas (LPG) (2005) and, most recently, to energy disconnection, water restriction, energy PROVISION 36 for Industry-Based Customer Dispute embedded networks (2018). In total, up to 30 June 2019, marketing, switching energy retailer, metering, vegetation Resolution (CDR Benchmarks). we had helped resolve 685,928 cases lodged by Victorian management and land access. TRANSFER 38 electricity, gas and water customers. While EWOV’s primary role is the resolution of complaints, SUPPLY 39 DATA NOTE The EWOV dispute resolution scheme operates on an our purpose also requires us to work to reduce the This report reflects data for the year LAND 41 industry-based Ombudsman model. EWOV is not a occurrence of complaints. Our publication of high quality, 1 July 2018 to 30 June 2019, run at government body or an industry regulator. The framework independent information and advice about the customer MARKETING 42 3 July 2019. Percentages are rounded to for its operation is drawn from the EWOV Charter, the experience of the energy and water industries makes the nearest whole number, so may not CUSTOMER SERVICE 44 EWOV Limited Constitution, licence conditions for the this information available to prevent future complaints. always total to 100%. All cases refer to PRIVACY 45 cases received unless otherwise stated. electricity and gas industries, the General Exemption Through a comprehensive outreach program, we build Order 2017 for embedded networks, relevant water awareness of EWOV, improve its accessibility, and reach SOLAR 46 legislation, the liquefied petroleum gas (LPG) industry code community organisations with information they can use to MORE ON OUR WEBSITE EMBEDDED NETWORK 48 and the Benchmarks for Industry-based Customer Dispute help the consumers who seek their advice. By maintaining The online version of this report at SYSTEMIC ISSUES 50 Resolution (CDR Benchmarks). effective collaborative relationships with energy and water www.ewov.com.au presents companies and regulators, we help drive customer service EWOV specialises in dispute resolution using alternative SCHEME PARTICIPANTS 52 visualisations and graphical improvements. By identifying systemic issues and reporting representations of the cases EWOV dispute resolution (ADR) processes. The complaints that ELECTRICITY 55 them to energy and water companies and to regulators, we received in 2018-19. energy and water customers bring to us are assessed on a help ensure these issues are recognised and addressed. GAS 62 case-by-case basis. We take account of relevant industry codes, good industry practice and the law, to reach fair WATER 68 Board photography by James Grant. and reasonable outcomes. We don’t take sides. FINANCIALS 74 Other photography by Hilary Sloane unless otherwise stated.
2019 ANNUAL REPORT 1 2018-19 SNAPSHOTS 2018-19 SNAPSHOTS
CASES BY INDUSTRY CASES BY ISSUE
44% Billing 13,699
20% Credit 6,109
1,721 13% Provision 3,976
Water 11% 10% Transfer 3,089 31,180 4% Supply 1,278 3% General Enquiry 872 10,384 CASES WERE 2% Customer Service 746 Gas 8% 2% Land 706 RECEIVED 10% 2% Marketing 576 <1% Privacy 129
ENQUIRIES 18,800 1,921 14% COMPLAINTS Electricity 11% 29,259 11%
Note: During 2018-19 we also received 45 cases about dual fuel and 230 cases related to other industries.
5-YEAR HISTORY
60,000 50,437
50,000
36,152 RETAIL ENERGY CREDIT 40,000 34,524 32,002 31,180 OVER CASES FELL 30,000 96,000 25% $2,741,057
20,000 ELECTRICITY CUSTOMERS DRIVEN BY THE PROVIDED FOR CUSTOMERS IN EMBEDDED NETWORKS INTRODUCTION OF THE THROUGH EWOV’S DISPUTE GAINED ACCESS TO EWOV PAYMENT DIFFICULTY RESOLUTION PROCESSES 10,000 FRAMEWORK
0
2014-15 2015-16 2016-17 2017-18 2018-19
2 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2019 ANNUAL REPORT 3 GOVERNANCE GOVERNANCE
Chairman’s message EWOV Limited Board
Each year, in considering the annual plan and budget, the Board scans the environment in which EWOV operates, to identify the strategic challenges.
Jonathan Briskin Gerard Brody Gavin Dufty Eugenio (Gino) Fragapane Paul Sheahan AM Origin Energy Consumer Action Law Centre St Vincent de Paul Society AGL Energy Chairman, Industry Director, Consumer Director, Consumer Director, Industry Director, appointed November 2014 appointed August 2014 appointed August 2014 appointed August 2013 appointed August 2015
In May 2019, I was pleased to be able to present to the At the same time, the Board recognises the importance General Meeting of the energy and water members of of keeping abreast of broader industry developments, EWOV Limited, a 2019-20 budget that reflects the balance especially around changing energy supply models and between the ‘business as usual’ aspect of EWOV (the technological innovations. To this end, over the year, we independent and efficient resolution of complaints) and drew on external expertise to update us on emerging the important consideration of what the future of EWOV products and services. will be, as the energy and water industries evolve away I thank my fellow Directors for their intelligent and from the traditional mode of delivery to which we are insightful contributions to Board meetings. In August 2018, accustomed. we farewelled EWOV Limited’s longest serving director, Peter Gartlan Claire Hamilton Ronda Held Peter Quinn In the face of ongoing change and challenge, 2018-19 Neil Brennan, Managing Director of Western Water, who Consumer Director, AusNet Services COTA Victoria Goulburn Valley Water was another year of strong performance by EWOV and was appointed in August 2002. Drawing on more than appointed July 2012 Industry Director, Consumer Director, Industry Director, outstanding leadership by Ombudsman, Cynthia Gebert. 35 years’ water industry experience, Neil’s input to the appointed December 2011 appointed July 2016 appointed August 2018 The Ombudsman kept the Board well-informed as EWOV Board over 16 years was significant and highly valued. delivered on the governance, systems and process Peter Quinn, Goulburn Valley Water’s Managing Director, Company Secretary: Christopher See, EWOV, appointed October 2008 changes needed to integrate embedded networks into has been appointed as the water industry’s director and is the scheme. This work, and reaching embedded network already making a very good contribution. entities with information about the obligation on them EWOV delivers an outstanding service in an increasingly GOVERNANCE STATEMENT to join EWOV, was time-consuming and it required varied and complex operating environment. In the coming considerable resources. The Board was pleased to see Energy and Water Ombudsman (Victoria) Limited is a The ‘members’ of EWOV Limited are the ‘scheme year, as well as monitoring emerging issues, the Board will good progress made and access to EWOV extended to company limited by guarantee and not having share participants’ of the EWOV dispute resolution scheme. be keeping a firm eye on developments that may bring more customers as the year went on. capital. The objective of the company is to independently further jurisdictional, funding and resourcing implications. The EWOV Limited Board is responsible for the and efficiently resolve disputes between customers and The Ombudsman also kept the Board updated on business affairs and property of the company, including energy and water service providers in Victoria, with the EWOV’s role in implementing Victoria’s new Payment corporate governance, the setting of budgets, risk further aim of reducing the occurrence of disputes. To Difficulty Framework, its case handling experience of management, strategic planning and ensuring the fulfil this objective, EWOV Limited has set up a dispute the effectiveness of consumer protections for energy Ombudsman’s independence. The day-to-day resolution scheme called Energy and Water Ombudsman and water customers, and other emerging issues that operation of the EWOV dispute resolution scheme is (Victoria) (EWOV) and appointed an Ombudsman who may affect the way the EWOV scheme operates. Our the responsibility of the Ombudsman. The roles of Paul Sheahan AM has authority under the EWOV Charter to receive, sincere thanks go to Cynthia and the whole team for the the Board and the Ombudsman are complementary, Chairman, EWOV Limited investigate and facilitate the resolution of complaints. professional, diligent and courteous manner in which they with the Ombudsman attending Board meetings. carry out their duties and responsibilities.
4 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2019 ANNUAL REPORT 5 FROM THE OMBUDSMAN FROM THE OMBUDSMAN
Ombudsman’s overview
EWOV’s work is guided by the six Benchmarks ‘’… our early experience of the implementation of the Payment Difficulty for Industry-Based Customer Dispute Resolution Framework pointed to a low level of understanding among energy retailers (CDR Benchmarks) — accessibility, independence, of what the changes meant in practice.’’ fairness, accountability, efficiency and
effectiveness. Access and fairness are at the heart CUSTOMERS FACING PAYMENT DIFFICULTY OPERATIONALISING POLICY AND PRINCIPLES-BASED DECISIONS of two major regulatory initiatives, which have From 1 January 2019, the Essential Services Commission strengthened the customer protection framework (ESC)’s Payment Difficulty Framework introduced Extending EWOV’s jurisdiction to embedded network important new protections for customers needing help to entities has delivered access to independent dispute resolution for more Victorian customers than ever Cynthia Gebert for Victoria’s energy customers over the past year. pay their electricity and gas bills. This is one of the most Ombudsman significant regulatory changes we’ve seen. By introducing before. The new Payment Difficulty Framework lays the minimum customer entitlements, this framework shifts foundation for better outcomes for customers in need the obligations on energy retailers away from discretionary of payment assistance. In each case, EWOV’s work is approaches. It requires them to consider the totality of a providing valuable insights on how these important and customer’s circumstances and focuses their obligations on necessary changes are working in practice. outcomes, rather than specific processes. In many ways the past year has highlighted that, despite CUSTOMERS IN EMBEDDED ELECTRICITY NETWORKS Our early experience of the implementation of the extensive consultation, planning, preparation, information After much planning and preparation, EWOV can now One area we’re monitoring closely is the impact of Payment Difficulty Framework pointed to a low level and lead time, there can be challenges to operationalising deal with complaints from customers whose electricity embedded network cases on EWOV’s efficiency. of understanding among energy retailers of what the policy and turning principles-based decisions into practical arrangements are part of an embedded network. Since Reflecting complaint trends generally, billing and credit changes meant in practice. Despite the lengthy lead time outcomes that make a real difference for customers. Well- 1 July 2018, entities selling or supplying electricity into are the issues customers are raising most. However, it’s provided by the ESC, some retailers really struggled with placed to suggest how problems might be addressed and private electricity networks (embedded networks) have been taking us longer to close embedded network cases, translating their new regulatory obligations into effective could have been prevented in the first place, we’re using been required to be an EWOV Limited member and, and we’ve found it harder and more complex to obtain the complaint handling. our experience to improve dispute resolution outcomes, therefore, an EWOV scheme participant. data we need to investigate complaints thoroughly. While help reduce future complaints by highlighting customer this reflects some jurisdictional newness at our end, it’s also Given the volume of billing and credit complaints By 30 June 2019, 230 embedded network entities (covering service issues, and inform ongoing policy discussions. a symptom of embedded network entities still coming to potentially touched by the changes, we adopted a 846 sites) had joined EWOV, delivering access to our grips with our role and how to effectively resolve disputes. facilitative approach to help energy retailers deliver on With significant energy market regulatory reform continuing dispute resolution services for over 96,000 more Victorian their obligations. Poor responses were pursued and, at both state and federal levels, EWOV has a responsibility customers. With around 21,000 customers (across 291 In 2018-19, just over 1% of all EWOV cases were about as necessary, Investigations were upgraded to help to actively influence the policy dialogue — especially sites) still to be afforded access, we’ve been actively, and embedded network entities. We registered 423 cases, 71% us deliver fair and reasonable, and compliant, dispute when proposed changes have unclear policy positions successfully, pursuing membership applications from the enquiries and 29% complaints. There’s more about our first resolution outcomes. This approach also drew attention to on appropriate consumer protections, including dispute remaining embedded network entities. full year of this new EWOV jurisdiction on page 48. inadequate responses — such as writing off significant debt resolution. This is important work, which we’ll continue to Integrating embedded networks into EWOV’s dispute so as not to have to work through the Payment Difficulty prioritise to help deliver better outcomes all round. resolution framework has taken a lot of time and effort. ‘’… we’ve been actively, and Framework requirements — and the cost of staff not being Even with all the preparatory work around funding models, properly equipped to address the retailer’s obligations. Charter and Constitution reviews, and our case handling successfully, pursuing membership With retailers taking our feedback on board, the quality of ‘’… there can be challenges to information provided to us has improved. processes, there have been challenges to making it work applications from the remaining operationalising policy and turning in practice. With EWOV’s credit cases for 2018-19 down 25% from principles-based decisions into embedded network entities ...’’ 2017-18, we’re optimistic the new framework is starting to deliver positive outcomes for customers. In the first half practical outcomes that make a of 2019, 767 customers received their Payment Difficulty Framework entitlements through conciliated outcomes real difference for customers …’’ from EWOV Investigations. Billing and credit were the most common issues. There’s more about customer entitlements under the new framework on page 9, and more about related EWOV cases on page 32.
6 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2019 ANNUAL REPORT 7 FROM THE OMBUDSMAN FROM THE OMBUDSMAN
A FRESH APPROACH TO PAYMENT DIFFICULTY
STRATEGIC, RELEVANT OUTREACH AND ENGAGEMENT REMAINING RELEVANT, EFFECTIVE AND After a record number of Victorians were disconnected TAILORED ASSISTANCE – AVAILABLE TO CUSTOMERS FIT-FOR-PURPOSE for not paying their energy bills in 2013-14, the Victorian WITH DEBT OF MORE THAN $55 Looking to other priorities, in line with the principles that Government directed the Essential Services Commission underpin the Benchmarks for Industry-Based Customer Over time EWOV has demonstrated its capacity to be Tailored assistance provides flexible and practical options (ESC) to conduct an inquiry into how retailers were Dispute Resolution (CDR Benchmarks), accessibility has flexible and adapt to change and, in an environment to repay any amount outstanding. Retailers are obliged assisting customers facing payment difficulty and whether always been high on EWOV’s agenda. The accessibility heavily characterised by policy, regulatory and operational to provide timely and meaningful assistance. They’re also the regulatory framework was ensuring customers principle is that the scheme makes itself readily available uncertainty, it’s important we’re well-positioned to required to help customers lower their ongoing energy costs, received assistance to avoid disconnection. The to customers, by promoting knowledge of its services, continue to do that. Recognising this, the Board and so their future energy bills are more affordable. Customers government’s terms of reference highlighted the existing being easy to use and having no cost barriers. Over the the Senior Leadership Team have reviewed and revised in arrears should be able to pay for their on-going energy legislative expectation that disconnection should be a last years, we’ve implemented many programs to achieve EWOV’s objectives and strategic priorities. An additional use and repay their arrears in a manageable way. resort. Through 2015, 2016 and 2017, the ESC consulted this. There’s always been a concern though, that some of strategic priority — ‘future scope and capability’ — has broadly on the development of a framework to effectively There are six tailored assistance entitlements. the customers who most need EWOV’s help may still be been introduced from 2019-20, to ensure we’re well prepared for further changes. address customer payment difficulty. missing out. The first two address alternative payment arrangements, We’ve recently refocussed our community outreach We’re also partnering with the other members of the ‘’… unambiguous customer and include customers being entitled to: Australia & New Zealand Energy and Water Ombudsman and engagement strategy to identify, as priority areas, entitlements to assistance from • nominate a payment arrangement that enables them locations that to this point have had a lower level of Network (ANZEWON) on some important joint research. to repay arrears through regular repayments over a engagement with EWOV. Key elements of this strategy This research will help us understand how the dispute their energy retailer …’’ timeframe they can afford (but no longer than two are improved data analysis around vulnerable consumers, resolution needs of energy and water customers may years) more effective consumer access via community partners differ 5 to 10 years from now, what customers may expect In publishing its final decision1 on the Payment Difficulty • advice from their retailer about different payment and consumer organisations, and fresh approaches to of an Ombudsman scheme, and the changes which may Framework in October 2017, the ESC said that it ‘’focuses options, and how each option would help to repay outreach engagements. be needed to ensure our schemes remain fit-for-purpose. on delivering better outcomes for customers”, and that this arrears. Drawing on our much-improved data analytics capacity, is a notable and deliberate change in emphasis ‘’achieved by establishing unambiguous customer entitlements to we’ve undertaken a priority mapping exercise — applying THANK YOU Customers are also entitled to receive: assistance from their energy retailer.’’ EWOV case data to publicly available data (including from • advice from their retailer to help them lower their EWOV’s case handling performance remained strong the Australian Bureau of Statistics) to identify patterns in energy costs, which might include tips, or other forms over the past year, in the face of ongoing change in our Implemented in January 2019, the new framework is our cases across geographic areas. This has enabled us to of assistance, to help them use less energy membership base and significant regulatory change. centred on a new Part 3 in the Victorian Energy Retail identify areas across Victoria where certain factors indicate Code, which establishes an entitlement for customers We were able to build on a stable backbone of sound • assistance to access government and non-government likely barriers to fair access to EWOV and detriment in the anticipating, or in payment difficulty, to two different types processes and systems and incorporate greater dynamic support services. form of high energy debts, disconnection and ongoing capability to respond to these changes. Thank you to the of assistance measures. payment difficulty. The areas we’ve identified include parts EWOV team for remaining professional, engaged, positive Customers in more severe types of payment difficulty are of the metropolitan local government areas of Greater and flexible as we dealt with the year’s challenges. entitled to a greater level of assistance, including: Dandenong, Brimbank, Hume, and parts of the regional STANDARD ASSISTANCE – AVAILABLE TO ALL • a period of at least six months where repayment of local government areas of Latrobe City, Greater Geelong Thank you to my Ombudsman colleagues in ANZEWON CUSTOMERS arrears is put on hold City and Mildura. We’ll be reporting further on this and the Australian and New Zealand Ombudsman The aim of standard assistance is to help customers take outreach initiative through 2019-20. Association (ANZOA). The opportunities these networks early action to manage their situation and avoid getting • practical assistance to lower their energy costs — provide for sharing of experience and collaboration on into debt. All energy retailers are required to offer at least which might include placing the customer on tariffs common approaches are highly valued. three out of the following four payment options: that help lower the cost of energy use; measures to help reduce the amount of energy they use (for ‘’… this has enabled us to identify Thank you to the EWOV Board Chairman and Directors for • payment arrangements that allow customers to pay a example, onsite or phone-based energy audits or their advice and support. set amount on each bill areas across Victoria where certain appliance replacement programs); and up-to-date factors indicate likely barriers to We go into 2019-20 focussed on maintaining the right • payment at shorter intervals, e.g. monthly or fortnightly information to help them monitor their progress in balance between the efficiency and quality of EWOV’s • the opportunity to delay payment of one missed bill to managing how much energy they’re using. fair access to EWOV …’’ case handling and adapting to the significant changes the next billing cycle taking place in our operating environment. • a ‘pay in advance’ option. ‘’… focuses on delivering better Customers don’t need the retailer’s permission to access outcomes for customers …” the standard assistance measures, and they don’t have to be in debt. They just need to ask. Importantly, retailers must make information about the standard assistance Cynthia Gebert measures they offer, and how that assistance can be Energy and Water Ombudsman (Victoria) accessed, readily available to customers.
1 Essential Services Commission 2017, Payment difficulty framework: Final Decision, 10 October (Executive summary, page viii)
8 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2019 ANNUAL REPORT 9 OUR PERFORMANCE OUR PERFORMANCE
including the Payment Difficulty prompt easier engagement with us. Framework and Victorian Default We commenced work with Meeting key performance Offer. Ombudsman colleagues to explore We reviewed our template online dispute resolution as an option measures letters and emails to ensure we to enhance EWOV’s accessibility in a deliver professional and clear changing digital environment. communications to customers and The scheme’s total costs of $11.2 EWOV’s focus remains on maintaining an scheme participants. million were $0.5 million (5%) above appropriate balance between the accessibility, We explored webchat as a further budget. The main driver was the efficiency, fairness and independence of its tool for customers to access EWOV, cost of fit-out works for EWOV’s anticipating its introduction early in new office space. Cost per case processes, while ensuring the flexibility and 2020. was steady in real terms, excluding responsiveness of its operating model. We reconsidered how we use SMS to the lease impacts of the office keep customers engaged, including relocation. a click-through email address to For 2018-19, the Board asked the EWOV Senior Leadership Team to continue to focus on six specific key performance areas. In this section of our annual report, we report on each of these areas. INDUSTRY RELATIONSHIPS • Operating model • Customer and community • Industry relationships engagement • Policy and influence • Human capability We actively sought and acted on Working Group to build a collective OVERALL GOAL: TO FOSTER • Systems and data analysis feedback from scheme participants, understanding of how our case EFFECTIVE, COLLABORATIVE through regular meetings related to handling process works in practice. RELATIONSHIPS AND DRIVE case handling. This contributed to improvements CONTINUED CUSTOMER to EWOV’s processes — including SERVICE IMPROVEMENT BY We used our reports and case OPERATING MODEL the decision to redistribute the THE ENERGY AND WATER studies to provide scheme costs associated with Enquiries and INDUSTRIES OVERALL GOAL: TO participants with practical examples Unassisted Referrals across other PROVIDE EFFICIENT, We performed well against key We took, on average, 38% longer of our investigative functions, the case costs in 2019-20. EFFECTIVE, FAIR AND timeframe measures, particularly to close embedded network customer complaint experience, and INDEPENDENT DISPUTE efficiency and accessibility: Investigations than we did to close our approach to fair and reasonable Our email survey of scheme SUCCESS MEASURES: RESOLUTION SERVICES Investigations generally, reflecting outcomes. participant perceptions of various › SUSTAINED LEVELS OF TO ENERGY AND WATER • To provide accessible and the newness of this jurisdiction. aspects of our performance SCHEME PARTICIPANTS’ CUSTOMERS AND SCHEME efficient service to customers We reinvigorated our ‘right first There is still a lower understanding showed a reduction in how effective SATISFACTION RELATIVE TO PARTICIPANTS contacting EWOV on the 1800 time training’ to improve the quality among embedded network scheme scheme participants perceive their 2017-18 number of responses scheme participants participants of EWOV’s processes relationship with EWOV to be. This › ONGOING ENGAGEMENT ›› Calls answered in 30 provide us and, therefore, reduce the WITH EWOV’S SCHEME and we’re still developing our appeared to relate to concerns seconds: KPI = 80% time spent on complaints by both PARTICIPANT MEMBER SUCCESS MEASURES: capability to handle embedded about the timeliness of our work Result = 84% them and us. PORTAL AND PUBLICATIONS › MEET OR EXCEED KEY network complaints. and the fairness of our processes AS DEMONSTRATED PERFORMANCE INDICATORS We migrated existing scheme • To provide timely and sustainable We took a cross-team approach and decision-making. Opportunities THROUGH READERSHIP AND BY 30 JUNE 2019 resolution of straightforward to preparing for the Payment participants to a new member for further improvement will be FEEDBACK RELATIVE TO › MEET COST PER CASE cases Difficulty Framework changes, portal, where they have access examined as part of the independent 2017-18 OUTLINED IN 2018-19 ›› Stage 1 Investigations closed developing internal and external to their company’s case data, review of EWOV early in 2019-20. BUDGET within 28 days: KPI = 90% training resources. We refined our quarterly scheme participant We continued to participate in the Result = 93% our case handling, identifying publication, and our case handling Thriving Communities Partnership, opportunities to improve data policies, procedures and contacts. ›› Stage 1 Investigations not to share our knowledge and capture and how we communicate CUSTOMER SATISFACTION reopened: KPI = 90% We worked to build understanding with scheme participants about experience and work collaboratively SURVEY RESULTS Result = 93% of EWOV’s role and process, and their new regulatory obligations. across industries to reduce the dispute resolution in the energy and • To be both effective and efficient We revised our associated external barriers to fair access to essential water industries, among embedded Overall (good or excellent result) 72% in handing all Investigations communications materials, including services, including improved network entities and associated ›› All Investigations average days fact sheets, videos and weekly customer service and easier access peak bodies, and to promote EWOV to close: KPI = 60 days hot topics. to relevant assistance. Advocates of EWOV 76% membership obligations. Our work Result = 67 days We engaged with industry peak We refined Resolve workflows and helped reduce the number of ›› Cases closed within 180 days: processes further — for better data bodies, new market entrants, existing Critics of EWOV 17% embedded network entities still to KPI = >98% scheme participants, regulators and capture, improved user experience join EWOV. Result = 97% and improved case handling government departments to build Net Promoter Score 59% ›› Investigations not reopened: productivity — much of this work We liaised with the individual our understanding of emerging KPI = 97% Result = 98% was driven by regulatory changes, members of our Embedded Network products and services.
10 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2019 ANNUAL REPORT 11 OUR PERFORMANCE OUR PERFORMANCE
POLICY AND INFLUENCE SYSTEMS AND DATA ANALYSIS
OVERALL GOAL: TO We provided 16 tailored responses Our progress report on EWOV’s We exceeded minimum working day We improved the self-service OVERALL GOAL: TO DELIVER BE A RESPECTED to data requests from regulators, new embedded network jurisdiction availability of 99.5% uptime for our functionality of our member portal ROBUST AND CAPABLE PROVIDER OF HIGH government departments, customer highlighted consumer issues telephony environment (99.98%), and migrated existing scheme INFORMATION TECHNOLOGY QUALITY, INDEPENDENT advocate groups and the media. emerging through complaints. This Resolve case management system participants across to it, with minimal AND DATA SOLUTIONS TO INFORMATION, ANALYSIS prompted engagement with the (100%) and email application (100%). user experience impact. Existing SUPPORT EWOV’S GOALS We provided five submissions and AND ADVICE ABOUT THE ESC, AER, Australian Energy Market scheme participant reports were CUSTOMER EXPERIENCE OF participated in 20 workshops for We shifted our systems and data Commission (AEMC), Department of migrated from Crystal to SSRS and THE ENERGY AND WATER regulatory processes associated analysis priorities from risk mitigation Energy and Environment, Australian consolidated on the portal, rather INDUSTRIES with the Independent Review of to value-add. SUCCESS MEASURES: Competition and Consumer than some being emailed to scheme the Electricity & Gas Retail Markets › KEY BUSINESS SYSTEMS Commission (ACCC) and Department We developed an analytics participants. This format (.csv) is more in Victoria (the Thwaites Review) ARE FUNCTIONING 99.5% OF of Environment, Land, Water and framework that clearly sets out our user-friendly and enables scheme and other Essential Services THE TIME DURING EWOV’S Planning (DELWP) on aspects of plan for improving EWOV’s analytics participants to more easily integrate SUCCESS MEASURES: Commission (ESC) processes. Our OPERATING HOURS › STAKEHOLDERS VALUE embedded network issues. capacity for both internal and external reports with their existing systems. › TIMELY AND EFFECTIVE submissions (published on EWOV’s EWOV INFORMATION AND stakeholders. ANALYSIS OF COMPLAINT We developed an integrated CONTRIBUTIONS TO POLICY website) responded to proposed We continued to work closely TRENDS ISSUES new rules for information disclosure with Solar Victoria and DELWP to We improved our predictive analytics stakeholder management database › ONGOING AND SUSTAINED and marketing by energy retailers; consider the consumer impacts of to project impacts on our case for all of our stakeholder groups in ENGAGEMENT WITH implementation of the first tranche the Solar Homes Program, sharing volume and assist effective decision- Microsoft Dynamics, reducing re- EWOV’S PUBLICATIONS of recommendations from the our case handling experience making about resource levels. work and improving the efficiency Thwaites Review; Energy Retail Code and case studies to help improve of our general stakeholder Better analysis of the interaction obligations for exempt sellers under communication with customers. management. between Australian Bureau of the General Exemption Order; new Res Online, our quarterly publication Statistics census data and EWOV Data capture changes to the case Energy Retail Code entitlements on case trends and issues, achieved complaints volumes helped us target management system improved our for customers experiencing family a 32% open rate and generated our community outreach efforts to capacity to provide government and violence; and the ESC’s compliance media interest. areas assessed as being most in need. regulators with timely reports about and enforcement policy. the effects of regulatory changes Readership of our Affordability We made two public submissions on customers and EWOV’s case Report, now published six-monthly, to other policy and regulatory handling. increased to 36%. processes — in response to the Australian Energy Regulator (AER)’s Readership of EWOV Connect, our draft customer hardship policy e-newsletter for financial counsellors guideline and its position paper on a and community workers, remained default market offer price. stable. We drew on our complaint We explored how to publish more handling experience and data timely contextualised EWOV case capture to highlight gaps in energy data and trends on our website. retailers’ understanding of, and compliance with, the Payment Difficulty Framework. This enabled retailers and the ESC to address implementation issues.
12 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2019 ANNUAL REPORT 13 OUR PERFORMANCE OUR PERFORMANCE
To test our new approach, we conducted two pilots We continued to build our internal capability to identify in areas identified as under-represented in EWOV’s appropriate referrals — to support customers in managing complaint data (when compared with indicators of relative their energy and water concerns and prevent further CUSTOMER AND COMMUNITY ENGAGEMENT disadvantage or vulnerability) — the Brimbank/Wyndham/ complaints. Melton area of Melbourne and Mildura in regional Victoria. We increased our use of social media to raise awareness We combined awareness-building engagement with among customers of their rights and responsibilities, key community organisations with consumer-focused and the benefits of EWOV’s service. We ran targeted OVERALL GOAL: We connected with community We reconsidered our approach sessions. The effectiveness of these pilots will be tested in campaigns on the changes to the regulatory regime. TO ADVANCE THE groups representing a diverse range to community outreach and the coming months. ACCESSIBILITY AND of customers, through: engagement, speaking directly with We improved the look and feel of our external AWARENESS OF EWOV We used a variety of communication channels — web, consumers and their representatives, communications materials to support our community • community visits social media, publications, factsheets and traditional media with a particular focus on consumers outreach and awareness objectives — greater use of • delivering presentations — to inform embedded network customers of their right who may not be accessing EWOV’s photos for more attractive, engaging and relatable to access EWOV. We mapped opportunities for face-to- • publishing and distributing fact services. We identified priority areas content, and redesign and redrafting of our factsheets to SUCCESS MEASURES: face engagement with the embedded network customer sheets (including translations) through analysis of internal and improve their accessibility. › MAINTAINING POSITIVE group. Pursuing these opportunities will involve effective COMMUNITY AGENCY external data. • releasing web-based weekly case collaboration with embedded network scheme participants. RELATIONSHIPS WITH studies and monthly ‘hot topics’ This revised focus has started to A VIEW TO IMPROVING deliver strategic, relevant outreach THE UNDERSTANDING OF • hosting videos on our website and engagement. One key outcome EWOV’S ROLE AND PROCESS • publishing a biannual community › SUSTAINED HIGH was our work with Djirra — an outreach publication, Connect EWOV’S OUTREACH AND ENGAGEMENT PRIORITY AREAS LEVELS OF CUSTOMER Aboriginal Community Controlled SATISFACTION AND • facilitating community Organisation, which provides POSITIVE COMMUNITY consultation group meetings legal and non-legal support to REGIONAL AND METROPOLITAN AGENCY FEEDBACK Aboriginal and Torres Strait Islanders RURAL VICTORIA • making social media connections • Greater Dandenong experiencing family violence, at a • Latrobe City • completing customer satisfaction number of locations in Melbourne • Brimbank • Greater Geelong City surveys. metropolitan and regional locations. • Hume • Mildura Hume
Brimbank Dandenong
OUTREACH CASES Mildura BY INDUSTRY
METROPOLITAN MELBOURNE
Electricity 59%
Gas 24% Water 18% Geelong
Latrobe
14 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2019 ANNUAL REPORT 15 OUR PERFORMANCE OUR PERFORMANCE
HUMAN CAPABILITY ORGANISATIONAL STRUCTURE
OVERALL GOAL: TO We moved to Qualtrics, an To support the significant changes MAINTAIN AN AGILE, Australian-based organisation, as in EWOV’s operating environment, ENGAGED AND HIGH the tool for EWOV staff engagement we built case handler knowledge PERFORMING WORKFORCE results, enabling us to customise the of embedded networks and other Conciliator survey, improving its usefulness and regulatory changes. examining issues relevant to our staff. Quality and We refined EWOV’s quality assurance Improvement SUCCESS MEASURES: We implemented the first part of a focus, by establishing greater links to Officers › SUSTAINED STAFF Service WDP structured adult learning program individual capability building. Officer Conciliator ENGAGEMENT SCORE that introduced all staff to the A number of quality assurance AND INCREASED STAFF basics of continuous improvement. CAPABILITY THROUGH initiatives delivered broader Team HR This provided a foundation for Lead Senior STRUCTURED DEVELOPMENT improvements in the efficiency and Advisor wider involvement in continuous Technical Quality AND REVIEWS quality of EWOV’s case handling. Advisor improvement initiatives across the Specialist organisation. While small in scale, Team the outcomes have meant that Manager Continuous Senior a wider group of staff is critically Improvement Capability Advisor thinking about ways to improve Manager EWOV’s various processes. Privacy, General People We continued to build a pool of Legal & Manager and Culture Dispute Operations Manager core skilled Service Officers, with Resolution some staff upskilled to complete Officer Payroll Investigations and assist in managing Officer sporadic complaint volumes. We encouraged high potential, Ombudsman Finance Senior Executive relatively inexperienced staff who Manager/ Administration Assistant/Admin demonstrated leadership capability, Company Support and Facilities by enabling them to attend Officer Secretary Finance the Leadership Victoria Igniting Officer Leadership program. This challenged these ‘technical experts’ to become effective leaders, thus building Information Comms greater succession planning options Administration Technology and Policy Manager Senior into EWOV. Support Manager Community Officer Reporting Outreach and Analyst Senior Engagement Policy & Officer Stakeholder Engagement Officer Senior Systems Data Policy Systems Analyst Senior Administrator Infrastructure Officer Manager Member Strategic Liaison Comms Officer Officer
Design Service and Comms Desk Digital Officer Officer Comms Officer
16 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2019 ANNUAL REPORT 17 CASEWORK AND PROCESS
Cases, customers, contacts
BY CASE TYPE THE CUSTOMERS
27,507 cases were lodged by residential customers (88%), Of the customers who disclosed their location, 71% 3,483 cases by business customers (11%) and 190 cases identified as being from metropolitan Melbourne and 23% 31,180 by not-for-profit/government customers (1%). Four years told us they were in regional/rural Victoria. ago, the split was residential 91%, business 9% and not-for- The maps on pages 20 and 21 provide more information profit/government <1%. TOTAL CASES about EWOV cases received in each Victorian council 67% of customers made contact by phone, and 33% by and shire — overall cases, high bill cases, energy 10% FROM 2017-18 email or through our website. Four years ago, the split was disconnection/water restriction cases, and debt collection/ phone contact 75% and email/website contact 24%. credit default listing cases. Complaints 29,259
Enquiries 1,921
CASES BY INDUSTRY
TYPE OF CUSTOMER: HOW THEY CONTACT US:
88% RESIDENTIAL 27,507 67% PHONE
Electricity 18,800
Gas 10,384 11% BUSINESS 3,483 28% WEBSITE Water 1,721
Note: During 2018-19 we also received 45 cases about dual fuel and 230 cases related to other industries. 1% GOVERNMENT / NOT-FOR-PROFIT 190 5% EMAIL
METROPOLITAN MELBOURNE REGIONAL / 71% RURAL VICTORIA 23%
Note: 6% of customers didn't give us their address or were from outside Victoria.
18 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2019 ANNUAL REPORT 19 CASEWORK AND PROCESS CASEWORK AND PROCESS
Victorian councils Customers by and shires
council/shire Metropolitan Melbourne councils
OVERALL CASES ENERGY DISCONNECTION/WATER RESTRICTION CASES
CASES PER 1,000 CASES PER 1,000 POPULATION POPULATION
N/A 2 - 4 0 - 0.3 4 - 6 0.3 - 0.6 6 - 8 0.6 - 0.9 8 - 10 0.9 - 1.2
HIGH BILL CASES DEBT COLLECTION/CREDIT DEFAULT LISTING CASES
CASES PER 1,000 CASES PER 1,000 POPULATION POPULATION
N/A N/A 0 - 0.3 0 - 0.2 0.3 - 0.6 0.2 - 0.4 0.6 - 0.9 0.4 - 0.6 0.9 - 1.2 0.6 - 0.8
View our interactive maps online: www.ewov.com.au/2019 20 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2019 ANNUAL REPORT 21 CASEWORK AND PROCESS CASEWORK AND PROCESS
A request for general information Our dispute resolution process — where we can, we provide the ENQUIRY information ourselves — where we can’t, we provide the customer with CASE contact information for the most appropriate office.
An expression of dissatisfaction All customer contacts about a policy, a practice or the with EWOV — each case INFORMAL DISPUTE RESOLUTION, BASED ON THE PRINCIPLES COMPLAINT customer service performance of an is registered as either an energy or water entity, which is an OF ALTERNATIVE DISPUTE RESOLUTION ‘enquiry’ or a ‘complaint’ and EWOV scheme participant — where handled in accordance with a response or resolution is explicitly our Best Practice Procedure. or implicitly expected. Essentially, we use alternative dispute resolution (ADR) between the customer and the company, or it may be methodology to uncover the facts. This helps the conciliated by us. Because our process is independent customer and their company better understand the of and external to the dispute resolution processes of issues and each other’s point of view. We work towards EWOV scheme participants, our work is often described as agreement on a resolution and what needs to be done external dispute resolution (EDR). WHERE NO RESOLUTION IS ACHIEVED OUR ‘FAIR AND REASONABLE’ FRAMEWORK to achieve it. This outcome may be achieved directly Sometimes a complaint goes through EWOV’s EWOV’s aim is to achieve dispute resolution outcomes Investigation process without a resolution being achieved. that are fair — and seen to be fair — by observing the In these cases, the Ombudsman has the power to close principles of procedural fairness, by making decisions on the complaint if it is assessed that further investigation is the information before us, and by having specific criteria not warranted, or to make a Binding Decision. A Binding upon which our decisions are based. To help us achieve EWOV HANDLES COMPLAINTS IN THREE STAGES Decision by the Ombudsman is binding on the company this, our Conciliators draw on EWOV’s ‘fair and reasonable’ if the customer accepts it. Alternatively, the customer may framework as illustrated below. choose to take action in another forum, such as a court. It hasn’t been necessary for the Ombudsman to make a UNASSISTED REFERRAL Assisted Referral provides an opportunity for a company Binding Decision since 2003. Where a customer contacts EWOV before giving their to reconnect with their customer. Undertaken effectively company an opportunity to address the problem, we by the company, it can build goodwill and customer provide the customer with information that enables them confidence in the company’s capacity to resolve any to contact the company directly to resolve their concerns. future problems. In 2018-19, we registered 3,889 complaints as Unassisted In 2018-19, we registered 20,622 complaints as Assisted Referrals — 12,061 electricity, 7,469 gas, 34 dual fuel and What the Referrals — 2,409 electricity, 1,117 gas, 4 dual fuel and 359 Interviews 1,058 water. Assisted Referrals were down 9% overall — ordinary Laws/ Customer water. Unassisted Referrals were down 17% overall — down with relevant down 11% in electricity, down 4% in gas, and down 10% person in the Regulations service 20% in electricity, down 13% in gas, and down 12% in water. others in water. street would performance think is fair Other Special ASSISTED REFERRAL INVESTIGATION industry customer Where a customer has spoken with their company, but practice circumstances the complaint remains unresolved, we register the Where Assisted Referral doesn’t resolve a customer’s Fair and complaint as an Assisted Referral. We arrange for a higher- complaint, we open an Investigation. We may also Scheme Reasonable Other case level contact within the company to contact the customer bypass Assisted Referral and move directly to an Participants’ There are many results over Investigation where we assess a complaint as being policies and their Current to investigate their concerns. The company has three considerations that Technical previous years complex and unlikely to be resolved by referral; where application good industry business days to contact the customer by phone or in ensure an impartial advice practice writing.2 It has a total of 15 business days to resolve the customer’s circumstances reflect EWOV’s Vulnerable outcome. the complaint. and Disadvantaged Customer Policy and Procedure; and/or where an energy or water company requests an We make this referral after providing the customer with Investigation. Any information about their rights and responsibilities, relevant previous Legal In 2018-19, we opened 4,748 Investigations — 2,932 Binding advice to their complaint. We also tell them they can return Manager’s view Peer’s view electricity, 1,612 gas, 7 dual fuel and 197 water. Decisions Regulatory to EWOV if the Assisted Referral doesn’t resolve the of the case of the case complaint for them. Investigations were down 15% overall — down 12% in advice electricity, down 19% in gas, and down 9% in water.
2 For consistency of approach, from 1 July 2019, this was changed from ‘three business days to contact the customer by phone, or five business days to make contact in writing’.
22 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2019 ANNUAL REPORT 23 CASEWORK AND PROCESS CASEWORK AND PROCESS
797 We finalised 27,754 cases Total Investigation money PAYMENT PLANS NEGOTIATED outcomes: $2,741,057 1,545 WRITTEN APOLOGIES PROVIDED
$1,482,861 RECOGNITION OF CUSTOMER SERVICE ISSUES Assisted Referral 17,172 $840,008 BILLING ADJUSTMENTS Investigation 4,857 $348,574 DEBT REDUCTION/ WAIVERS Unassisted Referral 3,818 $54,998 WAIVED FEES Enquiries 1,907 $14,616 GUARANTEED SERVICE LEVEL PAYMENTS
ASSISTED REFERRAL INVESTIGATION TIMEFRAMES
Complaint referred back to company but at a higher level 100% 17,172
2,500
INVESTIGATION OVERALL
Conciliation 80% 3,881 2,000 Other finalised complaints 20% 982 ELECTRICITY Procedural closure 19% 907 Withdrawn by customer 1% 37 1,500 GAS (INC. LPG) EWOV finds case out-of-jurisdiction <1% 24 Fair and reasonable assessment <1% 7 WATER Better dealt with by another body <1% 1 1,000
UNASSISTED REFERRAL 500 Referred back to energy/water company call centre 75% 2,850 Provided general information 17% 650 Referred to regulator 8% 318 0 <1 1-2 2-3 3-6 6-9 9-12 12+ ENQUIRIES MONTHS Referred to a regulator 49% 937 Provided general information 16% 310 Provided general information and referred to provider 14% 273 Note: The number of cases finalised by EWOV is always lower than the number of cases received. This is because an unresolved complaint may progress through several stages of receipt and escalation, and there are always some open Investigations. The outcomes data for finalised cases reflects the stage Referred to another Ombudsman 12% 223 at which the final outcome was achieved. More appropriately dealt with by another body 6% 118 Referred to government/MP 2% 46
24 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2019 ANNUAL REPORT 25 ISSUES AND TRENDS ISSUES AND TRENDS
How we group complaint issues
HIGH LEVEL ISSUES CATEGORIES TOP SUB-ISSUES RAISED BY CUSTOMERS IN 2018-19
EWOV uses 10 high level Billing: Generating and sending Provision: Connection or OVERALL GAS issues categories. Within each customer bills; processing payments; disconnection to the network of 1. Billing: high 1. Billing: high of these, there are a number of information on bills electricity or gas (including LPG); 2. Billing: error 2. Billing: error sub-issues. connection or restriction of water Credit: Disconnections, payment 3. Credit: energy disconnection/water restriction 3. Credit: disconnection During 2018-19, we reviewed difficulties, payment plan, debt Supply: The physical delivery of 4. Credit: collection/default listing 4. Credit: collection/default listing our sub-issues, reducing them collection, credit rating and default energy or water, including the quality from 246 to a more workable 5. Provision: existing connection 5. Provision: new connection listing of supply, variations in supply, failure 142. This has improved the to supply, and damage caused by quality and reliability of ELECTRICITY WATER Customer service: Service, or lack of the supply or by the failure to supply the data we capture and is service, received from the company 1. Billing: high 1. Billing: high supporting case handling Transfer: When the billing of a gas or 2. Billing: error 2. Billing: fees & charges efficiency. Our ten high level Land: How a company’s activities electricity supply transfers from one categories remain the same. 3. Billing: tariff 3. Billing: error or their network assets impact retailer to another 4. Provision: existing connection 4. Land: property damage customers’ land or property General enquiry: Cases that do not 5. Credit: collection/default listing 5. Credit: collection/default listing Marketing: The processes a gas or fit under more specific categories electricity retailer uses to win a new customer
Privacy: Related to the Australian TRACKING COMMON SUB-ISSUES OVERALL OVER 5 YEARS Privacy Principles
7,000
EWOV’s reporting is on the basis of 6,000 ‘one case – one issue’, that being the main issue the customer raises when 5,000 they contact us. Having listened to the customer, we sometimes register two or more issues for a 4,000 case — for example, billing error followed by payment difficulties. A 3,000 customer may also have issues with two different companies at the same time. During the life of a complaint, 2,000 we may re-categorise the initial case
issue as more information comes to 1,000 light about the actual nature of the complaint. 0 14-15 15-16 16-17 17-18 18-19
2018-19 CASE NUMBERS:
High bill 3,985 Debt collection/credit default listing 2,234 Billing error 2,749 Existing connection 2,090 Energy disconnection/water restriction 2,449
26 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2019 ANNUAL REPORT 27 SUB HEADING ISSUES AND TRENDS
Heading Billing issues and trends
TRENDS IN BILLING CASES BILLING: GENERATING AND SENDING BILLS, AND EWOV received 13,699 billing cases Gas customers lodged 36% of billing PAYMENT PROCESSES in 2018-19. Cases were up 3% from cases, most commonly about high SUBHEADING 2017-18, but down 41% from four bills (36%), billing errors (21%) and Eque dolorit, ad enia deni que a con conet quam, solesti years ago. backbilling (9%). Gas billing cases (4,943) were up 11% from 2017-18, COMMON SUB-ISSUES: omnis eost que nus sim erum quam voluptat estrum rectat Electricity customers lodged 57% HIGH, ERROR, TARIFF, but down 8% from four years ago. etur repudip idenduci dolendendi volesciur acere, velluptia of billing cases, most commonly BACKBILL quo qui untiorest estium expe cum es estes pa volupta about high bills (24%), billing errors Water customers lodged 6% of sperchi citium con nonet labore, eum a nat quo voluptae (20%) and tariffs (19%). Electricity billing cases, most commonly about nest, sunt di numquos andendi rem quatquo evendellor billing cases (7,837) were up 1% from high bills (36%), fees & charges (24%) aceperum ium sumOdiandit, ipsam, audi di sunt que cupta 2017-18, but down 53% from four and billing errors (13%). Water billing nus dolore simi, am quod eos ant vollenimus adit plaut years ago. cases (875) were down 20% from quianda volupta sitatiaspis sunt. 2017-18, and down 38% from four Pidiatemquia ventur, endaeped quiae rectestrum conectus years ago. acerfernam nistia sunt assus vitatiametus et vollant quiaece stiamet aliqui nonet re voluptam eos abor apelis que num sunderro berum re nosapid eraerum fuga. Ut volut am autemolor rerum utesti dolupta am vendae quiam ad et harum laborro rporehende velendi tiuntur ENERGY CASES DROVE THE TOP 3 BILLING ISSUES BILLING CASES magnam re doluptibus inulla cum re pro occum venis Together, high bill, billing error and The increases were driven by energy 5-YEAR HISTORY exped eserepro cuscia sit, quod qui od mos dit, quo tariff made up 61% of all billing cases. cases. Compared to 2017-18: endandus et pedipsanda volupissimi, odi volorporerum 23,339 sent ipsandestota nos anienducil eum ea volorum nos es • We received 3,985 cases about • Electricity high bill cases were up seque sumque a nulpa quamusae etur simaxim usanim high bills, 11% more than in 7% and gas high bill cases were quiderunti apist am quassum non repti dolo int andionserit 2017-18. up 32%. Water high bill cases were down 33%. 14,933 officimpelis eribus quae dolendi derferum qui diamus. • We received 2,749 cases about 13,163 13,342 13,699 Consendestet verio intesci enderibus, simosa praturi billing errors, 5% more than in • Electricity billing error cases were 2017-18. up 3% and gas billing error cases were up 12%. Water billing error • We received 1,654 cases about cases were down 19%. tariffs, 14% more than in 2017-18. • Electricity tariff cases were up
11% and gas tariff cases were up 2014-15 2015-16 2016-17 2017-18 2018-19 51%. Water tariff cases were up, but from a low base of 4 cases to 7 cases. SUB-ISSUES
High 3,985
Error 2,749
Tariff 1,654
Backbill 1,067
Fees and Charges 874
28 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2019 ANNUAL REPORT 29 ISSUES AND TRENDS
CASE STUDY: HIGH BACKBILL DUE TO ACCESS ISSUES CASE STUDY: HIGH BILL DUE TO A WATER LEAK
Residential customer Meter access Account set up on estimated reading Residential customer Unresolved water leak
Eligibility for high undetected leak allowance
Two days before going on holidays an application request for a Utility Because his gas meter was in his It advised that, because of in July 2018, Ms M noticed a water Relief Grant and told her that a hold neighbour’s locked garage, Mr A’s longstanding meter access issues, leak, rang her water corporation would be placed on the bill pending gas bills were based on estimates. Mr A’s account had been opened and was told to call a plumber. the outcome of the application. Mr A knew this, but said he believed in late 2016 on an estimated meter The plumber placed a sleeve over Ms M called the water corporation the bills reflected his usage. In June reading. Before the meter was the pipe and told her the repair two days later to complain that the 2018, after the gas retailer gained eventually read in June 2018 (and was temporary and may last two grant application form required her access to the garage and read the the backbill sent to Mr A), the last to three months. Ms M turned the to provide personal information. At meter, Mr A received a backbill actual reading was almost six years water off during the three months this point she’d requested EWOV’s for $2,502.20. He said he couldn’t earlier in October 2012, which was she was on holidays. Soon after contact information. afford this much and couldn’t reach four years before Mr A opened his coming back she found another a solution with his gas retailer. account. We explained to Ms M that, to have leak, realised the previous repairs the high undetected leak allowance We registered the complaint as The electricity retailer reversed the weren’t sufficient, and called the applied to her invoice, she would an Assisted Referral and facilitated June 2018 backbill. It reviewed Mr plumber back to fix it. Her water need to send the water corporation contact with Mr A by a higher-level A’s billing records, adjusting for the bill for the period was $535.51, four a plumber’s report confirming contact within the gas retailer. four years of estimates before he times higher than for the same time the leaks had been repaired. We Mr A returned to EWOV, dissatisfied opened his account. It accepted his the year before. She said she’d asked explained that the leak allowance that the retailer offered only an photo-read of the meter, and issued the water corporation to amend the is available to customers once instalment payment plan for the adjusted billing for $430.66. It also bill taking account of the leaks, but it every five years only, and that she arrears, and asked him to send a provided an account credit of $200 had refused. would still need to pay the service picture of the meter so it could be and a contact point so Mr A could We registered the complaint as charges in full. We also explained checked. Mr A undertook to pay request two special meter reads a an Assisted Referral and facilitated that, under the leak allowance, the $180 monthly towards the backbill, year at no charge. contact with Ms M by a higher-level water corporation could apply an while we investigated his complaint. Mr A was satisfied with this contact within the water corporation. adjustment of 50% of the estimated Responding to our Investigation, the outcome. The complaint was She returned to EWOV dissatisfied water lost and 50% of the sewerage gas retailer confirmed that Mr A’s closed. that the water corporation wouldn’t disposal charge. bills had been estimated because of just reduce the bill. 2018/21699 We checked the water corporation’s access issues. The retailer said it had Responding to EWOV’s Investigation, calculation of a $188.32 credit sent several ‘no access’ notifications Image: Shutterstock.com the water corporation said it had adjustment in line with the leak in the last 18 months trying to explained to Ms M that it needed allowance guidelines. This reduced address the meter reading issue. to issue a bill (with actual meter Ms M’s bill to $347.19, for which the We checked with the gas distributor. readings and usage), before it could water corporation offered several initiate the leak allowance process payment options. Ms M was satisfied to review the bill and consider any with this outcome. The complaint adjustment. It said she insisted was closed. her plumber told her the water 2018/29749 corporation would work out how Image: Shutterstock.com much should be removed and just deduct it before sending the bill. At Ms M’s request, the complaint was escalated to a team leader. It said that, after missed calls, Ms M spoke with another customer service representative who raised
30 2019 ANNUAL REPORT 31 ISSUES AND TRENDS ISSUES AND TRENDS
Credit issues and trends CASE STUDY: DELIVERING ON • said that if Ms F missed a payment, it CUSTOMER ENTITLEMENTS would contact her to discuss a revised payment proposal Residential customer Centrepay • sent her the Utility Relief Grant application CREDIT: UNPAID BILLS TRENDS IN CREDIT CASES Electricity disconnected forms for both electricity and gas AND THE ACTION TAKEN BY COMPANIES TO EWOV received 6,109 credit cases disconnection (43%) and collection Case escalated when PDF not addressed • applied the Annual Electricity Concession COLLECT ARREARS in 2018-19, down 25% from 2017-18 (32%). Gas credit cases (2,194) were to her most recent electricity bill and down 55% from four years ago. down 24% from 2017-18, and down In early February 2019, Ms F contacted EWOV • compared what Ms F paid on her last two Disconnection/restriction cases 45% from four years ago. after her electricity supply was disconnected monthly bills on her current tariff, rates were down 29%. Debt collection/ for arrears of just under $1,000. She said her COMMON SUB-ISSUES: Water customers lodged 4% of and daily charge against what she would credit default listing cases were energy retailer wanted a lump sum payment, COLLECTION, credit cases, most commonly about have paid on better rates the retailer had down 25%. Payment difficulties cases but she was already on a payment plan DISCONNECTION/ collection (44%) and restriction available for the same residential tariff RESTRICTION, PAYMENT were down 17%. We attribute the of $25 a week through Centrepay. In line (32%). Water credit cases (226) were DIFFICULTIES falls to the focus of energy retailers with EWOV’s Reconnection/Derestriction • explained how her tariff (residential peak down 20% from 2017-18, and down on implementing the Payment Policy, we arranged for Ms F’s supply to only) was assigned by the distributor 42% from four years ago. Difficulty Framework. be reconnected while we investigated her when the meter was originally installed We closed 153 investigations complaint. She agreed to continue paying and how it could be changed at her Electricity customers lodged 60% of flagged for ‘high arrears’, where $25 weekly. request to a peak, off-peak or shoulder credit cases, most commonly about the customer owed more than tariff — each with different rates for collection (39%) and disconnection We sought detailed information from the $3,000. This was down from 252 different times during the day (39%). Electricity credit cases (3,678) electricity retailer about how it had met its investigations in 2017-18. were down 25% from 2017-18, and obligations under the Payment Difficulty • offered a phone energy audit and down 60% from four years ago. The average arrears in the residential Framework — specifically, the level of discussion of Ms F’s interval meter data — credit complaints we investigated assistance to which Ms F was entitled; to determine her energy usage, analyse CREDIT CASES Gas customers lodged 36% of was $1,995. This was down from details of the assistance the retailer could her usage patterns and suggest ways to 5-YEAR HISTORY credit cases, most commonly about $2,698 in 2017-18. offer through affordability and payment reduce usage difficulties support; how the retailer had • offered information on other government 13,574 met its obligations; and, if it hadn’t met its and non-government assistance she 10,995 PAYMENT DIFFICULTY FRAMEWORK CASES obligations, the steps it was taking to rectify could access to help meet her energy the issue. When the retailer didn’t clearly In 2018-19, EWOV closed 4,162 In some cases, the energy costs — including websites where she 8,245 advise what Ms F’s monthly usage was and 8,121 residential electricity, gas and dual retailer wrote the debt down, could find ideas and information for whether her weekly payments of $25 would energy efficient homes. 6,109 fuel credit cases. Of these 1,073 rather than provide the customer cover her ongoing usage, we requested were Investigations. In 767 of with appropriate help under the further information and upgraded the Ms F was satisfied with this outcome. The the Investigations, the outcome framework. While a short-term complaint. complaint was closed. conciliated by EWOV related to the solution for retailers and financially Payment Difficulty Framework. In vulnerable customers, this doesn’t The retailer came back to advise that it 2019/2789 375 of these cases, the main issue address the long-term issue of calculated Ms F’s average electricity cost to 2014-15 2015-16 2016-17 2017-18 2018-19 was disconnection, in 225 cases it not being able to afford to pay for be $26.25 a week, so her payment of $25 a Responding to EWOV’s separate Investigation was debt collection/credit default ongoing energy use. week was just under her weekly electricity of whether disconnection was wrongful, the listing and in 167 cases it was cost. It assessed that by changing plans disconnecting retailer agreed that a Wrongful Most of the customers who received payment difficulties. or tariffs and by reducing her usage, her Disconnection Payment (WDP) applied under SUB-ISSUES tailored assistance as a result of payment of $25 a week should cover her clause 111A(1)(c) of the Energy Retail Code. Of the 767 customers who received EWOV’s Investigation were given ongoing electricity costs and may start This clause provides that a customer may be Payment Difficulty Framework information about the Utility Relief Disconnection/Restriction 2,449 paying the arrears. disconnected for non-payment, only as a last outcomes conciliated by EWOV, Grant Scheme or concessions. resort, if they have refused or failed to take 448 were offered a payment plan. Or, as part of practical assistance, In resolution of the complaint, the retailer: Collection 2,234 reasonable steps to make payment. While 35 customers received a payment they received a tariff review or • put a hold on Ms F’s arrears of $954.27 Ms F didn’t have a formal payment plan, she plan under ‘standard assistance’ advice to lower their energy use for six months, to give her time to obtain was making payments towards the account Payment Difficulties 1,416 and 74 received a payment plan and reduce energy costs. Under payment assistance and apply for a Utility and trying to pay her ongoing usage. On under ‘tailored assistance’. Retailers the Payment Difficulty Framework Relief Grant this basis, Ms F received a WDP of $539.58, offered a further 339 customers guidelines, these customers Deliveries Stopped (LPG) 10 having been off-supply for just over a day a payment plan of another type (and those we assisted through • accepted a payment plan of $25 a week, ($500 a day pro-rata). — including plans for arrears only, Unassisted and Assisted Referral) the amount she was paying through for consumption only, for equal should have been offered the Centrepay WDP/2019/62 payments over a specified period, for appropriate level of assistance payment in advance, and extension (standard or tailored) without of time to pay arrears. lodging a complaint with EWOV.
32 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2019 ANNUAL REPORT 33 ISSUES AND TRENDS ISSUES AND TRENDS
CASE STUDY: GAS DISCONNECTED EWOV’S ROLE IN ASSESSING OUTCOMES OF WDP ASSESSMENTS CLOSED AFTER PAYMENT CLEARED ‘WRONGFUL DISCONNECTION’ Electricity Gas Residential customer Payment difficulties A Wrongful Disconnection Payment (WDP) is payable to a customer if an energy Disconnection retailer hasn’t complied with the terms and conditions of its contract with the customer, 200 148 WDP payable Mr D contacted EWOV in September 2018 and the requirements of the Energy Retail after his gas was disconnected for arrears Code, before disconnecting electricity or of $711.95. Mr D told us he’d had difficulty gas supply. The payment is currently $500 97 71 WDP not payable paying his gas bills for the past couple of a day (or part thereof), capped at $3,500 if years, but he’d paid $800 a couple of days the customer doesn’t make contact with the retailer within 14 days. Where we investigate before his gas was disconnected. Several 137 23 WDP paid - no admission of breach by retailer days after the disconnection, when the a customer complaint about an actual retailer told him it would still take 24 to 48 disconnection, EWOV makes a separate assessment of whether a WDP is payable. hours to reconnect, Mr D contacted EWOV 52 86 WDP not applicable for help. In line with EWOV’s Reconnection/ Where the retailer and EWOV can’t agree on Derestriction Policy, we arranged for Mr D’s an outcome, we request a formal decision gas to be reconnected while we investigated from the Essential Services Commission 31 16 Case not with disconnecting retailer his complaint. (ESC). In 2018-19, we finalised 870 WDP assessments, 60% electricity and 40% gas. 3 The retailer confirmed Mr D’s arrears of 508 wrongful disconnection payments were Referred to ESC for decision $711.95, saying reminder notices had been made and 9 assessments were referred to 6 sent. It confirmed that his payment of $800 the ESC for decision. had cleared a day before the disconnection. 0 100 200 300 400 500 It credited his account with $100 in recognition of the inconvenience caused. Mr D was satisfied with this outcome. The complaint was closed. CREDIT-RELATED DISCONNECTION AND RESTRICTION CASES 2018/24247 3,000
Responding to EWOV’s separate Investigation of whether the disconnection was wrongful, 701 WDP the retailer acknowledged that it was, because Mr D took reasonable action to ASSESSMENTS settle his debt by paying the balance before 2,000 the disconnection. Mr D received a Wrongful Disconnection Payment (WDP) of $3,552.91, OPENED having been off-supply for 7 days, 2 hours, 33 minutes ($500 a day pro-rata).
WDP/2018/818
1,000
0
2014-15 2015-16 2016-17 2017-18 2018-19 ELECTRICITY GAS 421 280 2018-19 CASE NUMBERS: Imminent electricity disconnection 909 Imminent gas disconnection 591 Imminent water restriction 36
Actual electricity disconnection 521 Actual gas disconnection 356 Actual water restriction 36
34 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2019 ANNUAL REPORT 35 ISSUES AND TRENDS
Provision issues and trends
PROVISION: THE TRENDS IN PROVISION CASES CONNECTION OF A PROPERTY TO THE ENERGY EWOV received 3,976 provision Gas customers lodged 32% of OR WATER NETWORK cases in 2018-19. Cases were down provision cases, most commonly 23% from 2017-18, but up 9% from about new connection (50%). Gas four years ago. provision cases (1,285) were down 29% from 2017-18, but up 7% from COMMON SUB-ISSUES: Electricity customers lodged 64% four years ago. EXISTING CONNECTION, of provision cases, most commonly NEW CONNECTION about existing connection (57%). Water customers lodged 4% of Electricity provision cases (2,542) provision cases, most commonly were down 22% from 2017-18, but about existing connection (58%). up 11% from four years ago. Water provision cases (149) were up 35% from 2017-18, but down 6% from four years ago.
PROVISION CASES CASE STUDY: PAYING FOR REPAIRS AFTER POWER SURGE 5-YEAR HISTORY School in regional area Outage Repair of damage to equipment
5,187 In June 2018, a power surge affected and the results of its assessor’s 3,976 a school in regional Victoria. The inspection of the damage. 3,652 3,691 principal contacted EWOV saying 3,009 We also considered the monetary that despite many discussions, he value of old, but functional, couldn’t reach agreement with equipment; whether repair quotes the electricity distributor on the and other costs were reasonable; school’s claim for compensation of the Electricity Distribution Code; $138,586.12 for damaged electrical the Voltage Variation Compensation equipment and the cost of using Guideline; the extent of the school’s blow-heaters as an interim heating 2014-15 2015-16 2016-17 2017-18 2018-19 surge protection; and who should source. Declining Assisted Referral, pay for the extra cost of using the the distributor asked for an EWOV blow-heaters. We sought advice Investigation due to the size and from EWOV’s technical adviser. As SUB-ISSUES complexity of the claim. our Investigation progressed, the Our Investigation was claim was reduced by revised quotes Existing Connection 2,090 comprehensive, informed by and because some items could be detailed information from both repaired. The complaint was closed New Connection 1,625 parties. From the school, we after a settlement of $63,624.73 was considered information from the agreed, for equipment damage and attending electrician; details of extra electricity costs. Disconnection/Restriction 250 damaged appliances (type and age); 2018/20415 its insurance policy and cover; and Deliveries Stopped (LPG) 11 actions it had taken to mitigate loss Image: Shutterstock.com from voltage variation events. From the distributor, we considered the outage history of the site; applicable Guaranteed Service Level payments;
36 ENERGY AND WATER OMBUDSMAN (VICTORIA) ISSUES AND TRENDS ISSUES AND TRENDS
Transfer issues and trends Supply issues and trends
TRANSFER: SWITCHING TRENDS IN TRANSFER CASES TRENDS IN SUPPLY CASES SUPPLY: THE PHYSICAL AN ELECTRICITY OR GAS DELIVERY OF THE ENERGY ACCOUNT TO A NEW EWOV received 3,089 transfer cases Gas customers lodged 41% of EWOV received 1,278 supply cases in Gas supply cases (185) were down OR WATER SERVICE ENERGY RETAILER in 2018-19. Cases were down 19% transfer cases, most commonly 2018-19. Cases were up 2% from 2017- 22% from 2017-18, and down 4% from 2017-18, and down 40% from about delay (33%) and transfer in 18, and up 7% from four years ago. from four years ago. four years ago. error (24%). Overall, gas transfer Electricity customers lodged 74% Water customers lodged 11% of cases (1,267) were down 7% from COMMON SUB-ISSUES: COMMON SUB-ISSUES: Electricity customers lodged 59% of supply cases, most commonly supply cases, most commonly about 2017-18, and down 29% from four PLANNED OUTAGE TRANSFER IN ERROR, of transfer cases, most commonly about outages — planned (39%) and quality (41%) and sewer/overflow/ UNPLANNED OUTAGE, years ago. CONTRACT TERMS, DELAY, about contract terms (26%) and unplanned (31%). Electricity supply blockage (21%). Water supply cases QUALITY WITHOUT CONSENT transfer in error (24%). Overall, There was also 1 dual fuel case. cases (948) were up 5% from 2017- (145) were up 26% from 2017-18, and electricity transfer cases (1,821) were 18, and up 7% from four years ago. up 24% from four years ago. down 25% from 2017-18, and down Gas customers lodged 14% of supply 45% from four years ago. cases, most commonly about quality (49%) and unplanned outage (33%).
TRANSFER CASES CASE STUDY: SWITCHED TO A DIFFERENT RETAILER, CASE STUDY: PAYING FOR REPAIRS TO FUSE BOX SUPPLY CASES 5-YEAR HISTORY IN A DIFFERENT NAME 5-YEAR HISTORY Residential customer Responsibility for maintaining equipment Small business Supply disconnection Notices not received 5,126 1,257 1,278 1,195 1,137 A business’ electricity was or disconnection notices that were 1,023 3,802 Mr J contacted EWOV when his have been several causes for the 3,593 disconnected without warning issued. The disconnecting retailer 3,283 electricity distributor wouldn’t incident. 3,089 in mid-December 2018. Ms H, retrospectively returned the billing reimburse him for repairs to the fuse representing the business, rang rights for the property back to the Our Investigation considered box at his house. We registered the EWOV when she couldn’t get supply business’ preferred retailer and relevant electricity law, including the complaint as an Assisted Referral reconnected — despite calls to closed the incorrect account with a Electricity Distribution Code, Section and facilitated contact with Mr J by the business’ preferred retailer, the nil balance. It provided a customer 3.2.1, which states ‘A customer a higher-level contact within the disconnecting retailer and the local service payment of $115.63 in must use best endeavours to ensure electricity distributor. Mr J returned electricity distributor. Ms H said the recognition of the inconvenience that: (a) The customer’s electrical to EWOV dissatisfied that the 2014-15 2015-16 2016-17 2017-18 2018-19 distributor told her the business’ caused. installation and any equipment 2014-15 2015-16 2016-17 2017-18 2018-19 account had been transferred to a distributor still wouldn’t pay. Ms H was satisfied with this within it complies with this Code and different retailer in August 2018 and outcome. The complaint was closed. Responding to EWOV’s Investigation, is maintained in a safe condition’. was now in a different name. the distributor said the crew it Inspection of the premises by SUB-ISSUES SUB-ISSUES 2018/31139 In line with EWOV’s Reconnection/ sent out to Mr J’s house after he EWOV’s Technical Consultant found Derestriction Policy, we arranged reported an electricity failure found no evidence that the distributor had In Error 733 a burnt-out fused overhead line contributed to the outage. Off Supply - Planned 400 for the business’ electricity to be Responding to EWOV’s separate connection box (FOLCB). Supply reconnected while we investigated Investigation of whether Mr J accepted our independent was isolated and made safe, and a Delay 666 the complaint. disconnection was wrongful, the Investigation, which concluded that Off Supply - Unplanned 382 defect notice issued. After Mr J’s disconnecting retailer was unable the repairs were his responsibility. Our Investigation revealed the electrician rectified the defect, the Without Consent 641 to substantiate whether it should The complaint was closed. Variation 279 business’ account had been crew returned to reconnect. The have known that a deemed contract transferred when another retailer distributor said Mr J was back on 2019/3317 existed. On this basis, the business Contract Terms 636 incorrectly obtained the property’s supply by 6.30pm the same day. It Quality 168 received a Wrongful Disconnection National Metering Identifier (NMI) maintained that, as the FOLCB is a Payment (WDP) of $84.37, having for a different customer. As the customer asset, repair of it was Objection 255 been off-supply for just over four Sewer/Stormwater Overflow/Blockage 31 postal address on the account was Mr J’s responsibility. It said that, hours ($500 a day pro-rata). now not the one for the business, it as Mr J’s electrical installation was hadn’t received the billing reminders WDP/2018/999 around 60 years old, there could
38 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2019 ANNUAL REPORT 39 ISSUES AND TRENDS
Land issues and trends
TRENDS IN LAND CASES LAND: THE EFFECT OF COMPANY ACTIVITIES OR EWOV received 706 land cases in property damage (52%) and network NETWORK ASSETS ON A 2018-19. Cases were up 14% from assets (43%). Gas land cases (130) CUSTOMER’S PROPERTY 2017-18, and up 32% from four were up 7% from 2017-18, and up years ago. 48% from four years ago.
Electricity customers lodged 48% of Water customers lodged 33% of COMMON SUB-ISSUES: land cases, most commonly about land cases, most commonly about PROPERTY DAMAGE, network assets (45%) and property property damage (44%) and network NETWORK ASSETS damage (23%). Electricity land cases assets (34%). Water land cases (236) (340) were up 24% from 2017-18, and were up 6% from 2017-18, and up up 23% from four years ago. 38% from four years ago. Gas customers lodged 18% of land cases, most commonly about
CASE STUDY: RELOCATING AN OVERHEAD LINE LAND CASES 5-YEAR HISTORY Residential customer Property redevelopment Placement of network assets
706
619 598 Having built two townhouses on Mr P with his neighbour’s consent. 536 518 a residential block and paying to It gave some options. underground the electricity, EWOV’s Technical Consultant also Mr P wanted the local distributor to assessed the line as compliant, relocate the overhead cable at his saying it didn’t appear to present next-door neighbour’s property for safety issues and didn’t interfere with safety and aesthetic reasons. He was a deck Mr P was constructing. His dissatisfied to be told he’d have to view was that the only compliant pay for this work. We registered the option for relocating the cable 2014-15 2015-16 2016-17 2017-18 2018-19 complaint as an Assisted Referral would be underground, which and facilitated contact with Mr P would come at a significant cost by a higher-level contact within the and require the consent of Mr P’s electricity distributor. Mr P returned SUB-ISSUES neighbour. to EWOV, further dissatisfied with advice that any change would have We provided this information to Network Assets 290 to be initiated by his neighbour. He Mr P seeking his response. The asked EWOV to investigate. complaint was closed as ‘no further investigation’ when we didn’t hear Property Damage 250 Responding to our Investigation, back from him. the electricity distributor said its Vegetation Management 65 inspection found the overhead cable 2019/268
to be safe, based on acceptable Image: Shutterstock.com clearances under the Victorian Other 55 Service and Installation Rules. It confirmed that any works to relocate Easement 27 or remove the line would need to be paid for by Mr P’s neighbour, or by
40 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2019 ANNUAL REPORT 41 ISSUES AND TRENDS
Marketing issues and trends
MARKETING: HOW TRENDS IN MARKETING CASES ELECTRICITY AND GAS RETAILERS GO ABOUT EWOV received 576 marketing cases Gas marketing cases (114) were up GAINING NEW CUSTOMERS in 2018-19. Cases were up 1% from 11% from 2017-18, and up 7% from 2017-18, but down 2% from four four years ago. years ago. There was also 1 dual fuel case. Electricity customers lodged 80% of COMMON SUB-ISSUES: In the second half of 2018, 30 MISLEADING, PRESSURE marketing cases, most commonly complaints to EWOV highlighted SALES about misleading marketing (49%) large price increases on variable and pressure sales (31%). Electricity energy contracts. We understand marketing cases (461) were down approximately 33,000 customers of 2% from 2017-18, and down 4% from the energy retailer were affected. four years ago. While retail prices aren’t regulated Gas customers lodged 20% of in Victoria, large price increases marketing cases, most commonly invariably drive complaints and about misleading marketing (69%) undermine trust and confidence in and pressure sales (17%). the market. We raised this with the Essential Services Commission as a systemic issue.
MARKETING CASES CASE STUDY: UNEXPECTED PRICE RISE SOON AFTER SIGNING UP 5-YEAR HISTORY Misleading marketing Price increase
587 573 576 525 484 In late August 2018, Mrs B used line with the terms and conditions information on a government energy of Mrs B’s contract. Because its comparison website to switch technology didn’t allow the discount electricity retailer to save money. Six to be noted on her bill, the retailer weeks later, her new retailer advised was addressing Mrs B’s concerns a rate increase of around 30%. by manually applying a credit of Mrs B said she wouldn’t have $51.63 to each bill. This meant that, switched if she’d known about this. in effect, she was still paying the original rates. 2014-15 2015-16 2016-17 2017-18 2018-19 We registered the complaint as an Assisted Referral and facilitated Having checked this, we spoke contact with Mrs B by a higher-level with Mrs B, who accepted EWOV’s contact within the electricity retailer. independent review. The complaint SUB-ISSUES When we heard back from Mrs B, was closed. she said the retailer had offered a 2018/27468 Misleading 307 billing discount, but she was still dissatisfied with the rate increase and Pressure Sales 163 sought an EWOV Investigation. Responding to EWOV’s Investigation, Information 54 the retailer confirmed Mrs B signed up in August 2019 for one year.
Other 52 The terms and conditions of the contract included that prices may vary. It acknowledged the significant price increase in November 2018, but said the increased rates were in
42 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2019 ANNUAL REPORT 43 ISSUES AND TRENDS ISSUES AND TRENDS
Customer Service issues and trends Privacy issues and trends
CUSTOMER SERVICE: THE TRENDS IN CUSTOMER SERVICE CASES TRENDS IN PRIVACY CASES PRIVACY: HOW A LEVEL OF SERVICE RECEIVED CUSTOMER’S PERSONAL OR NOT RECEIVED EWOV received 746 cases specifically were up 10% from 2017-18, and up EWOV received 129 cases about about company refusal to disclose INFORMATION HAS BEEN, about customer service in 2018-19. 16% from four years ago. privacy in 2018-19. Cases were up information (26%) and details OR IS BEING, HANDLED Cases were up 43% from 2017-18, 36% from 2017-18, but down 9% released (21%). Gas privacy cases Water customers lodged 6% of and up 32% from four years ago. from four years ago. (34) were up 89% from 2017-18, and customer service cases, most COMMON SUB-ISSUES: up 17% from four years ago. POOR SERVICE, INCORRECT Electricity customers lodged 71% commonly about incorrect advice Electricity customers lodged 67% COMMON SUB-ISSUES: ADVICE OR INFORMATION of customer service cases, most or information (36%). Water of privacy cases, most commonly Water customers lodged 5% of DISCLOSURE REFUSED commonly about poor service (36%). customer service cases (42) were up about customer details obtained privacy cases, a small number BY COMPANY, DETAILS OBTAINED WITHOUT Electricity customer service cases 35% from 2017-18, and up 24% from without consent (25%) and company across several sub-issues. Water CONSENT, DETAILS (532) were up 52% from 2017-18, and four years ago. refusal to disclose information (25%). privacy cases (6) were down 33% RELEASED up 34% from four years ago. Electricity privacy cases (87) were from 2017-18, and down 57% from There were also 3 dual fuel and 18 up 28% from 2017-18, but down 10% four years ago. Gas customers lodged 20% of other industry cases. from four years ago. customer service cases, most There were also 2 other industry commonly about poor service (38%). Gas customers lodged 26% of cases. Gas customer service cases (151) privacy cases, most commonly
CUSTOMER SERVICE CASES CASE STUDY: DISTRESSING PURSUIT OF DEBT CASE STUDY: UNWANTED CONTACT BY A THIRD PARTY PRIVACY CASES 5-YEAR HISTORY 5-YEAR HISTORY Estate of a residential customer Persistent collection activity Residential customer Sharing of details Automatic opt-in Contract terms
746 141 129
566 EWOV was contacted by a Given the sensitive nature of Mr C complained about receiving a Our review of the welcome pack 522 98 representative of the estate of the complaint, we used EWOV’s customer service survey about his confirmed that it clearly set out 95 a customer, recently deceased, discretion to open an Investigation. energy retailer from a third party. the retailer’s policies on use of 77 308 who had held electricity and gas Responding to our Investigation, He maintained that agreement to customer information. The terms 278 accounts with an energy retailer. the retailer confirmed that it had any third-party communication with and conditions also set out how a The representative said that, sent the customer’s outstanding him should be on an opt-in basis customer could contact the retailer despite telling the retailer the death balances to collection activity. It only. We registered his complaint to opt out of marketing. Our review was subject to police and other advised that both balances (a total as an Assisted Referral, to facilitate of the retailer’s notes of contacts investigation, the retailer pursued the of around $630) would be recalled contact with him by a higher-level with Mr C showed no contact from 2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19 estate for the debts and contacted from collection and waived, and the contact within the energy retailer. him about opting out. the customer’s minor child when it accounts would be closed. The retailer responded by seeking We discussed this with Mr C, who had been asked not to. an EWOV Investigation because, in 2018/20780 and 2018/20781 strongly maintained his position, SUB-ISSUES its view, the issue had already been SUB-ISSUES but accepted the outcome of our discussed with Mr C, investigated independent Investigation and that and addressed. Poor Service 275 the retailer would remove him from Disclosure refused by Company 32 The energy retailer said the further marketing. We provided Incorrect Advice/Information 168 ‘welcome pack’ Mr C received Mr C with information about the Other 30 set out its contract terms and Office of the Australian Information conditions, privacy policy and how Commissioner should he wish to Failure to Respond 153 Details Obtained Without Consent 27 to opt out of marketing. It said Mr C pursue his privacy concerns with accepted the terms and conditions that office. Failure to Consult/Inform 150 by not cancelling the contract within Details Released 23 2019/5563 the 10-day cooling-off period, and, before receiving the survey, hadn’t Details Requested by Company 17 indicated he wanted to opt out of marketing.
44 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2019 ANNUAL REPORT 45 ISSUES AND TRENDS ISSUES AND TRENDS
MONTHLY TRENDS IN SOLAR CASES
In jurisdiction Out-of-jurisdiction Solar issues and trends 147
TRENDS IN SOLAR CASES SOLAR: RELATING TO 67 67 SOLAR INSTALLATION BY A After trending down since 2015-16, Tariff was the second most common COMPANY THAT’S AN EWOV 72 SCHEME PARTICIPANT solar cases to EWOV increased in solar issue. We registered 447 cases, 2018-19. We received 1,949 solar mostly to do with the General Feed- 40 cases, up 16% from 2017-18, though in Tariff (GFiT). Again, incorrect, 2018 2019 still down 18% from four years ago. missing or delayed paperwork was COMMON SUB-ISSUES: often the underlying issue. This Provision at an existing connection JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN PROVISION AT AN EXISTING meant some customers received CONNECTION, TARIFF was the most common solar issue. bills that weren’t adjusted for solar We registered 537 cases, mostly credits. to do with delay in supply upgrade (including meter reconfiguration CASE STUDY: company to visit the site, but it maintained or upgrade) often as a result of READ THE TERMS AND CONDITIONS the meter setup and wiring were correct. On incorrect or missing paperwork. For this basis, Mr N insisted the local distributor some customers, the delay meant Medium-sized business Solar configuration was at fault in signing off on the installation. they missed out on solar credits. Responsibility for incorrect set-up We arranged for an assessment by EWOV’s Technical Consultant. He advised that the In May 2018, looking to reduce its monthly electrician had incorrectly wired the three- electricity bills of $7,500 - $8,000, a phase solar supply upstream of the meter. Melbourne-based business engaged a private He confirmed that this meant that 100% of solar company to install solar panels. When generation was being sent directly to the SOLAR CASES RECEIVED REFERRALS FOR CUSTOMERS WITH COMPLAINTS ABOUT SOLAR Mr N, the business’ financial officer contacted 4-YEAR HISTORY INSTALLATION COMPANIES grid. He said the Certificate of Electrical EWOV for help in October 2018, he said the Safety had been submitted by the solar We weren’t able to deal with 573 to Consumer Affairs Victoria or business’ bills hadn’t decreased and, despite company and signed off by a Licensed 2,381 (29%) of the solar cases EWOV the Clean Energy Council, as repeated contacts with the electricity retailer, Electrical Inspector. He found no fault on the received, as they were out-of- appropriate. he wasn’t satisfied with its responses. He said part of the retailer, or the distributor. 1,949 1,800 jurisdiction, mainly because the the explanation the retailer gave for no savings 1,685 The trend to increasing solar business complained about was not on bills was that the business was using all the We also examined the business’ interval complaints (both in-jurisdiction an EWOV scheme participant. This solar electricity it was generating and drawing meter data. This showed that, in early and out-of-jurisdiction) even before included complaints about solar on the grid for more. The retailer also told him February 2019, its electricity usage had the introduction of the Victorian installers (63%), third-party providers, the business still needed to sign a solar export fallen by about 50% and solar export credits Government’s Solar Homes Program solar system purchase agreements contract, but the solar company hadn’t told were being recorded. Based on this data, from July 2019 is concerning. and community energy projects. him about this requirement. we assessed that the solar company had The government estimates that, In these cases, customers raised a fixed the wiring. Mr N asked for the business’ in the coming year, this program We registered the complaint as an Assisted variety of complaints — misleading solar credits to be backdated to the solar 2015-16 2016-17 2017-18 2018-19 will support 49,000 installations, Referral and arranged contact with Mr N by marketing, faulty inverters, solar installation date. We explained that this including 42,000 rooftop solar a higher-level contact within the electricity installation delays, faulty solar wasn’t possible because until early February systems on 40,000 owner-occupied retailer. Still dissatisfied, Mr N returned to PV, inverters lacking the required 2019 the export data wasn’t being recorded. homes and 2,000 for rented homes.3 EWOV and we opened an Investigation. capacity, solar systems not working We’re sharing our case handling Mr N accepted the results of EWOV’s at full capacity, solar systems not The electricity retailer arranged for the experience of solar complaints with Investigation. We provided him with installed incorrectly, and relevant electricity distributor to check that the the Department of Environment, photographs of the wiring, the interval data paperwork not submitted to the business’ meter was configured for solar Land, Water and Planning and Solar records, and a copy of the safety certificate electricity retailer or distributor. credits. The distributor’s technician found the Victoria to help avoid customer submitted by the solar company and signed We referred these customers solar system was incorrectly wired up to the complaints going forward. off by the Licensed Electrical Inspector on meter. All the business’ solar generation was completion of the solar system installation. going directly into the grid, not being used We advised him that, should he wish to at the business or exported via the meter. pursue the complaint further, the appropriate The distributor said Mr N would need to body was Energy Safe Victoria. The discuss re-wiring and compensation with the complaint was closed. solar company. Mr N arranged for the solar 2018/24954
3 https://www.solar.vic.gov.au/victorias-rooftop-solar-revolution-kicks-today
46 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2019 ANNUAL REPORT 47 ISSUES AND TRENDS
Embedded network issues and trends
EXPLAINING EMBEDDED NETWORK A CLOSER LOOK AT THE ISSUES Embedded networks are private electricity networks Related to billing, customers in embedded networks mostly supplying homes or businesses within specific self- complained about high billing, tariffs, and fees and charges. CASE STUDY: contained sites, including apartment buildings, shopping Examples include higher than expected bills after buying LOOKING TO SWITCH FROM AN EMBEDDED centres, caravan parks and retirement villages. Since 1 July an apartment off-the-plan unaware of the embedded NETWORK FOR BETTER RATES 2018, under the General Exemption Order, embedded network arrangement; bills without any consumption network entities have been required to join an approved information or other details; rates that were much higher Wrong rates quoted Wanting to switch alternative dispute resolution scheme. That scheme is than the customer could get elsewhere. In theory, an Getting a NMI EWOV. To 30 June 2019, in the first year of this new embedded network customer should receive electricity at jurisdiction, over 96,0004 embedded network customers a lower rate as the embedded network is able to purchase gained EWOV access. the electricity at a lower ‘bulk rate’. This isn’t always the Mr J, a small business owner within a combined residential-commercial site, case. There are rules around how much embedded $100. This reduced Mr J’s current bill from contacted EWOV in June 2018 dissatisfied networks can charge and, generally, the embedded $1,645.87 to $1,012.87. It confirmed that, with the cost of his electricity and keen to network shouldn’t charge more than the standing offer of going forward, Mr J’s business would be Distribution network Embedded network change retailers. He said he’d been told that, the default retailer for each distribution area. billed on the business rates. because his business was in an embedded Related to credit, customers complained about electricity network, he’d need to arrange When it came to switching retailer, Mr J had disconnection, debt collection/credit default listing and a National Meter Identifier (NMI) before he two choices. The retailer said Mr J could payment difficulties. Examples include not being aware could switch. He was unsure how to do this. obtain a NMI by moving to one of its market of (or made aware of) available concessions; in financial contracts. However, the rates would most We registered the complaint as an Assisted difficulty and not receiving information about payment likely be higher than the business rates in Referral and facilitated contact with Mr J by assistance and grants; and being unable to access a the embedded network agreement. If he did a higher-level contact within the licensed wrongful disconnection payment. switch, it would still need to bill him for the electricity retailer, which was operating as supply charge, because it was responsible Parent Customer Related to transfer, customers mostly complained about the embedded network operator. meter meter the embedded network retailer raising an objection for the onsite metering. His usage charges when they wanted to switch to another retailer. While Mr J returned to EWOV dissatisfied that the would be separately billed by the retailer, in customers have a right to switch to a licensed electricity retailer wouldn’t honour the rates in the its capacity as a licensed retailer. information he received. Mr J agreed to retailer — and, recently, government and regulators have Alternatively, Mr J could seek a market pay the portion of his billing not in dispute introduced new rules to try to make this easier — there contract with a new retailer, specifying that and we opened an Investigation into his are still barriers, including that they may not get any he wanted to exercise his ‘power of choice’ complaint. TRENDS IN EMBEDDED NETWORK CASES offers from other retailers. They may also need to pay and transfer from the embedded electricity for a new meter — meter requirements within embedded Responding to our Investigation, the retailer We registered 4235 embedded network cases — 302 network. Once this was done, the new networks mean the same functionality is not mandatory, said it had provided the property developer enquiries and 121 complaints. The high proportion of retailer would have to raise a ‘business to and when the meters of households and small businesses with residential and business rates for the enquiries was due to the embedded network entity not business’ request to the embedded network in Victoria were upgraded under the progressive Smart development. It was established that, when having joined EWOV at the time the customer contacted us. retailer through the Market Settlement and Meter rollout, many embedded network customers missed these were passed on by the developer/ Transfer Solution (MSATS) to organise a 341 cases were lodged by residential customers, 76 by out. They also can’t switch without a National Metering owners’ corporation, Mr J was given the contestable NMI to bring the meter back business customers and 6 by government/not-for-profit Identifier (NMI) and, usually, an electricity meter inside an residential rates, when he should have been on-market. customers. The top 3 embedded network case issues embedded network doesn’t have its own NMI. given the business rates. Mr J maintained his Mr J said that he appreciated the thoroughness were billing (57%), credit (12%) and transfer (11%). entitlement to the rates he received. EWOV’s fact sheets 38 and 39, published on our website, of EWOV’s Investigation, but he remained provide a guide to embedded electricity networks In recognition of the situation Mr J found dissatisfied with the retailer’s response. He generally, and specific information and tips about himself in, the retailer provided an account indicated that once the complaint was closed, switching retailer for customers in embedded networks. credit of $533, effectively the difference he would arrange for an NMI so he could get between the business and residential rates more competitive rates. for the period April 2018 to July 2018. It 2018/13373 also provided a customer service credit of
Image: Shutterstock.com 4 Customer numbers cover customers in embedded network billed by licensed retailers and those billed by embedded network operators.
5 297 cases were from embedded networks not yet members of EWOV, 40 were from licensed members and 86 were from embedded networks that are members of EWOV.
48 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2019 ANNUAL REPORT 49 SYSTEMIC ISSUES SYSTEMIC ISSUES
EWOV’s role in systemic issues
We identify systemic issues through the cases EWOV receives and the complaints we investigate. A systemic issue may also be identified by a
scheme participant and notified to us. LARGE PRICE INCREASES ON VARIABLE CONTRACTS MISLEADING QUOTING OF SOLAR FEED-IN RATE EWOV received complaints from 30 customers who were An energy retailer’s website and contract material gave the HOW EWOV DEFINES A SYSTEMIC ISSUE • Billing delays SI/2018/16 unhappy with large price rises on their variable contracts. impression that Premium Feed-in Tariff (PFiT) customers The retailer confirmed that price changes for about would receive $0.713 per kWh fed into the grid, rather than EWOV defines a systemic issue as an issue, problem or • Inconsistent calculation of GSL payments SI/2018/17 33,000 customers took effect between 1 October and 30 $0.60 per kWh. The retailer amended the information in change in company policy or practice that affects, or has • Unclear contract renewal documentation SI/2018/19 November 2018. Depending on the customer’s distribution its contract material and website. It apologised to affected the potential to affect, a number of customers. Some • Actual data labelled as estimated SI/2018/21 area and usage profile, the increase was between 4% customers, provided account credits, and offered to move affected customers contact EWOV and some don’t. • Two numbers for same meter SI/2018/23 and 39% of their total bill. While the rates retailers charge them to its best market offer. It also provided them with Our systemic issues identification and reporting • Connections information sent to other customers customers in Victoria aren’t regulated, large price increases advice about the Victorian Government’s comparison responsibilities are underpinned by the EWOV Charter and SI/2018/27 are likely to continue to cause complaints. We highlighted website. SI/2018/51 the EWOV Limited Constitution, regulatory memoranda this issue in a letter to the ESC about poor market • Representation of concession entitlements on an of understanding and reporting protocols, and the conduct. SI/2018/53 energy retailer’s bills found to be confusing SI/2018/30 Benchmarks for Industry-Based Customer Dispute TWO NUMBERS FOR SAME METER • Scheduling of truck appointments SI/2018/31 Resolution (CDR Benchmarks). EWOV’s case handling revealed instances where two • Connection delays after industrial action SI/2018/34 USAGE CHARGES LEFT OFF BILLS Identification of systemic issues gives us the opportunity separate Meter Installation Registration Numbers were to alert the scheme participant concerned, to help bring • Credits not received during daylight saving SI/2018/35 EWOV received five cases in which an energy retailer created for the same address and the same gas meter. about a timely and efficient solution and reduce the • Screening of online applications SI/2018/36 had billed for service charges only — usage charges were The gas distributor advised that it had reviewed its new later backbilled. In each case, the customer’s account connection process to address the problem. SI/2018/23 potential for more customers to be affected. Our reporting • Large rate increases SI/2018/37 of systemic issues brings a greater level of transparency had been activated, but there was no check on whether • Disconnection without warning of remote de- to industry practices, helping to drive customer service it was correctly linked to the meter in the energy retailer’s energisation SI/2018/38 improvements and minimise future complaints. billing system. Because the retailer’s system bills for both CREDITS NOT RECEIVED DURING DAYLIGHT SAVING • Usage charges left off billsSI/2018/39 metered and unmetered supply, the missing usage charges EWOV’s systemic issues responsibilities differ slightly EWOV’s case handling showed that some customers, who • Concession wasn’t being applied SI/2018/40 weren’t picked up. The retailer said it had introduced between energy and water. were meant to receive credits for their usage between • Solar credits wrongly described SI/2018/41 weekly reporting to identify and correct the omission. It 6am and 7am every day, didn’t receive the credits in In energy, where we believe a potential systemic issue also advised that a large-scale billing project, expected to • Solar generation wrongly described SI/2018/42 daylight-saving periods. The energy retailer found that a exists and it hasn’t been appropriately remediated by be implemented in mid-2019, would introduce automated trigger in its billing system wasn’t adjusting for daylight- • Gas marketing in a non-contestable area SI/2018/43 the energy company — or we haven’t been able to pre-billing validation for both metered and unmetered saving for customers in one distribution network. The obtain a formal response from the company — we must • Offers to customers in a non-contestable areaSI/2018/44 supply. SI/2018/39 retailer addressed the problem and provided the 26 formally refer the potential issue to the Essential Services • Marketing to elderly and vulnerable customers SI/2018/45 affected customers with their missing credits. SI/2018/35 Commission (ESC) for its investigation. • Marketing email disclosed information of other INACCURATE SOLAR BILLING In water, we identify, investigate and seek redress for customers SI/2018/47 Through EWOV’s casework we identified issues with PRIVACY BREACH affected customers — with a report to the Department of • Disconnection before date on notices sent to ‘occupier one electricity retailer’s solar billing that affected around Environment, Land, Water and Planning (DELWP) on the accounts’ SI/2018/50 A water corporation notified EWOV of a privacy 12,000 customers. For customers with solar export, the outcome and whether the water corporation has co- • Misleading quoting of solar feed-in rate SI/2018/51 breach, which came about when an email it sent to operated with us to resolve the issue appropriately. electricity usage information on the energy retailer’s bill some customers displayed another customer’s name, • Meter index reads wrongly combined SI/2018/52 combined both import and export figures in both the property address, email address and amount owing. The • Large price increases on variable contracts SI/2018/53 graph and average daily usage. This wasn’t compliant water corporation said it sent a follow-up email to 690 ENERGY ISSUES IDENTIFIED AS SYSTEMIC with the requirements of clause 25 (1) (k) of the Energy AND CLOSED IN 2018-19 • Billing delays arising from three different issues SI/2018/59 customers the same day advising of the error. It also Retail Code. The energy retailer made a system change informed the Department of Environment, Land, Water • Three-phase meters affected by a manufacturing fault • Errors in meter read information after system update to ensure that, going forward, the bills accurately showed and Planning and the Office of the Victorian Information SI/2015/37, SI/2017/1 and SI/2017/2 SI/2019/19 the average daily usage, the average daily cost, and the Commissioner. The water corporation’s investigation • Reminder notices short on business days SI/2016/63 average daily cost for each tariff component (for example concluded that the breach was due to human error. It said • Inaccurate index reads on bills SI/2016/68 WATER ISSUES IDENTIFIED AS SYSTEMIC peak and off-peak). The average daily usage, cost figures it had changed its procedures to help prevent a repeat of AND CLOSED IN 2018-19 and the graph now don’t include export. The bills now • Inaccurate solar billing SI/2018/6 the issue. SI/2018/54 • Privacy breach SI/2018/54 comply with clause 25 of the Energy Retail Code. SI/2018/6 • Amending advices to customers around credit default listing SI/2018/8 • Incorrect calculation of sewage disposal charges SI/2019/9 • Billing data mismatches SI/2018/9
50 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2019 ANNUAL REPORT 51 SCHEME PARTICIPANTS SCHEME PARTICIPANTS
A consolidated list of EWOV scheme participants
All suppliers and sellers of energy and water operating in Victoria are required by licence, legislation or order in council to join a dispute resolution scheme NATURAL GAS RETAIL METROPOLITAN WATER RURAL WATER approved by the Essential Services Commission. That scheme is EWOV. 1st Energy21 City West Water Corporation Goulburn-Murray Rural Water AGL Sales22 South East Water Corporation Corporation At 30 June 2019, 95 licensed electricity, gas and water companies and 230 Alinta Energy Yarra Valley Water Corporation Gippsland Southern Rural Water embedded electricity network entities were members of EWOV Limited. amaysim Melbourne Water Corporation Corporation Click Energy23 CovaU ELECTRICITY RETAIL EMBEDDED ELECTRICITY REGIONAL URBAN WATER RURAL URBAN WATER NETWORK SITES19 Dodo Power & Gas 1st Energy Lumo Energy Australia Barwon Region Water Corporation 20 EnergyAustralia Grampians Wimmera Mallee Water AusNet Services Residential (534) Macquarie Bank Limited GloBird Energy Central Gippsland Region Water Corporation 6 Caravan park (153) AGL Sales 27 Momentum Energy Lumo Energy Australia Corporation Lower Murray Urban and Rural Water Alinta Energy Commercial/retail (126) Neighbourhood Energy Momentum Energy Central Highlands Region Water Corporation amaysim Retirement (26) Next Business Energy Origin Energy24 Corporation Blue NRG Large (7) Online Power & Gas Powershop Australia Coliban Region Water Corporation Click Energy7 Onsite Energy Solutions Red Energy East Gippsland Region Water Commander Power8 15 ELECTRICITY DISTRIBUTION Origin Energy Simply Energy Corporation CovaU 16 People Energy AusNet Services Sumo Power Goulburn Valley Region Water Delta Electricity9 Power Club CitiPower TAS Gas Retail Corporation Diamond Energy Powerdirect Jemena Electricity Networks (Vic) Weston Energy North East Region Water Corporation 10 Dodo Power & Gas Powershop Australia Powercor Australia South Gippsland Region Water 11 Elysian Energy QEnergy Corporation United Energy Distribution NATURAL GAS DISTRIBUTION EnergyAustralia Red Energy Wannon Region Water Corporation EnergyAustralia (Yallourn) SIMEC Energy Australia17 AusNet Services ELECTRICITY TRANSMISSION Western Region Water Corporation 12 25 Energy Locals Simply Energy Australian Gas Networks Westernport Region Water AusNet Services ERM Power Retail Stanwell Corporation Enwave Victorian Networks Corporation FlowPower13 Sumo Power18 Basslink Multinet Gas Vic Future X Power14 Tango Energy Transgrid GloBird Energy WINconnect LIQUEFIED PETROLEUM GAS (LPG)
6 Two electricity retail members of EWOV Limited trade as AGL Sales — AGL Sales Pty Ltd and AGL Sales (Queensland Electricity) Pty Limited Elgas 7 Click Energy Pty Ltd’s electricity licence was transferred to amaysim Pty Ltd in November 2017. Click Energy remains a trading name of amaysim Pty Ltd Origin Energy LPG26 8 Commander Power is a trading name of M2 Energy Pty Ltd Supagas 9 Delta Electricity is the trading name of Sunset Power International Pty Ltd 10 Dodo Power & Gas is a trading name of M2 Energy Pty Ltd 11 Elysian Energy Pty Ltd joined EWOV Limited as an electricity retail member in January 2019 12 Energy Locals Pty Ltd joined EWOV Limited as an electricity retail member in November 2018 20 These site categories have been determined by the dominant category — for example, apartment buildings with a few retail tenancies have been counted as residential, as they are predominantly residential properties 13 FlowPower is the trading name of Progressive Green Pty Ltd 21 1st Energy joined EWOV Limited as a gas retail member in May 2019 14 Future X Power is the trading name of Online Power and Gas Pty Ltd 22 Two gas retail members of EWOV Limited trade as AGL Sales — AGL Sales Pty Ltd and AGL Sales (Queensland) Pty Ltd 15 Three electricity retail members of EWOV Limited trade as Origin Energy — Country Energy, Origin Energy Electricity Ltd and Sun Retail Pty Ltd 23 Click Energy is trading name of amaysim Pty Ltd 16 Power Club Limited joined EWOV Limited as an electricity retail member in April 2019 24 Two gas retail members of EWOV Limited trade as Origin Energy — Origin Energy (Vic) Pty Ltd and Origin Energy Retail Ltd 17 SIMEC ZEN Energy Retail Pty Ltd joined EWOV Limited as an electricity retail member in January 2019 25 Two gas distribution members of EWOV Limited trade as Australian Gas Networks — Australian Gas Networks Limited and Australian Gas Networks (Vic) Limited 18 Sumo Power is the trading name of SparQ Pty Ltd 26 Two LPG members of EWOV Limited trade as Origin Energy LPG — Origin Energy LPG Limited and Origin Energy Retail Ltd 19 For a full list of EWOV’s embedded network scheme participants, see www.ewov.com.au 27 Central Gippsland Regional Water Corporation is commonly known as Gippsland Water
52 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2019 ANNUAL REPORT 53 ELECTRICITY
Electricity case trends
At 30 June 2019, 48 electricity There are just over 2.8 million companies were EWOV scheme residential and small business participants under licence (40 electricity customers in Victoria,28 electricity retailers, 5 electricity most of whom have been able 18,800 distributors, 3 electricity transmission to choose their electricity retailer CASES companies). A further 230 since early 2002. They can’t choose 11% embedded electricity network their electricity distributor, because entities were EWOV scheme each of the five distributors owns participants under the General and operates the ‘poles and wires’ Exemption Order. network in a specific part of the state. Operating within the National Customers in embedded electricity Energy Market, Victoria’s electricity networks have technically been able industry is privately owned and to choose their retailer since 2018, but practical barriers remain. 60% independently regulated. OF ALL CASES 5-year history
Retail cases Distribution cases
30,730 2,944
2,543 2,605 1,398 2,192 Enquiries 19,656 1,868 22% 16,969 15,795 14,843
17,402 Complaints
2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19 13%
Note: There were also 1,266 non company specific and 86 embedded network electricity cases. 2,932 BY CUSTOMER TYPE Investigations 12% Residential 85% 16,020
Business 14% 2,646
Government / Not-for-profit 1% 134 3,015 Investigations finalised 7%
28 Essential Services Commission 2018, Victorian Energy Market Report: 2017-18
54 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2019 ANNUAL REPORT 55 ELECTRICITY ELECTRICITY
Main issues Electricity cases received in 2018-19
2017-18 2018-19 Billing 42% 7,837 Customer Overall Overall Unassisted Assisted Total Company Enquiries Investigations share cases cases Referrals Referrals Complaints Credit 20% 3,678 RETAIL^ 1st Energy <1% 346 163 5 48 99 11 158 Provision 14% 2,542 AGL Sales 21% 3,008 2,911 42 323 1,965 581 2,869 Alinta Energy 3% 959 1,018 17 115 733 153 1,001 Transfer 10% 1,821 amaysim <1% 34 93 2 9 74 8 91 Blue NRG <1% 50 24 0 6 14 4 24 Supply 5% 948 Click Energy <1% 761 434 3 69 307 55 431 Commander Power 2%* 7 7 0 0 6 1 7 General enquiry 3% 554 CovaU <1% 32 23 0 3 8 12 23 Delta Electricity <1% 0 0 0 0 0 0 0 Customer service 3% 532 Diamond Energy <1% 13 23 3 7 11 2 20 Dodo Power & Gas 2%* 193 186 2 35 124 25 184 Marketing 2% 461 EnergyAustralia 18% 2,914 2,389 32 259 1,632 466 2,357 EnergyAustralia Yallourn <1% 0 0 0 0 0 0 0 ERM Power Retail <1% 10 9 0 2 7 0 9 Land 2% 340 FlowPower <1% 3 2 0 2 0 0 2 Future X Power <1% 47 8 1 1 4 2 7 Privacy <1% 87 GloBird Energy <1% 74 90 1 22 62 5 89 Lumo Energy Australia 7% 1,059 1,194 10 119 891 174 1,184 Macquarie Bank Limited <1% 0 0 0 0 0 0 0 Momentum Energy 4% 460 618 2 66 443 107 616 Neighbourhood Energy <1% 0 0 0 0 0 0 0 Next Business Energy <1% 31 21 1 1 14 5 20 Onsite Energy Solutions <1% 0 0 0 0 0 0 0 Sub issues Origin Energy 19% 2,627 1,979 27 246 1,388 318 1,952 People Energy <1% 204 146 2 28 96 20 144 Powerdirect 2% 365 291 19 59 171 42 272 Powershop Australia 2% 143 87 2 19 56 10 85 QEnergy <1% 100 92 0 7 54 31 92 BILLING TRANSFER MARKETING Red Energy 9% 948 814 14 95 574 131 800 Simply Energy 9% 1,672 1,378 11 172 954 241 1,367 High 1,891 Contract Terms 482 Misleading 228 Stanwell Corporation <1% 1 0 0 0 0 0 0 Error 1,589 In Error 430 Pressure Sales 144 Tariff 1,493 Without Consent 418 Information 46 Sumo Power 1% 864 736 16 132 515 73 720 Backbill 575 Delay 253 Other 43 Tango Energy <1% 44 107 1 26 71 9 106 Fees and Charges 479 Objection 133 Embedded Network (selling) 86 5 14 55 12 81 Concession 449 Cooling-Off Rights 105 TOTAL 16,969 14,929 218 1,885 10,328 2,498 14,711 Refund 378 LAND DISTRIBUTION~ Delay 279 AusNet Services 25% 969 853 10 119 600 124 843 Network Assets 154 Estimation 236 SUPPLY CitiPower Pty 12% 213 187 4 35 112 36 183 Format 165 Property Damage 79 Jemena Electricity Networks (Vic) 12% 509 397 3 50 265 79 394 Other 158 Off-Supply - Planned 367 Vegetation Management 62 Powercor Australia 28% 506 443 12 90 236 105 431 Meter 139 Off-Supply - Unplanned 297 Other 20 Bulk Hot Water 6 Variation 267 Street Lighting 19 United Energy Distribution 23% 747 725 6 109 520 90 719 Quality 17 Easement 6 TOTAL 2,944 2,605 35 403 1,733 434 2,570 TRANSMISSION CREDIT AusNet Services 3 0 0 0 0 0 0 GENERAL ENQUIRY PRIVACY Collection 1,436 Basslink 0 0 0 0 0 0 0 Disconnection 1,430 Energy 551 Details Obtained Without Consent 22 TransGrid 0 0 0 0 0 0 0 Payment Difficulties 812 Disclosure refused by Provider 22 TOTAL 3 0 0 0 0 0 0 Other 17 NON COMPANY SPECIFIC CUSTOMER SERVICE Details Released 15 Non Company Specific 1,169 1,266 1,145 121 0 0 121 PROVISION Details Requested by Provider 11 Poor Service 193 TOTAL 1,169 1,266 1,145 121 0 0 121 Existing Connection 1,459 Incorrect Advice / Information 124 TOTAL 21,085 18,800 1,398 2,409 12,061 2,932 17,402 New Connection 925 Failure to Respond 117 Disconnection 158 Failure to Consult / Inform 98 ^ Electricity retailers’ residential customer shares are based on the Essential Services Commission, Victorian Energy Market Report 2017-18 * The residential customer share is the total share for M2 Energy Pty Ltd, which trades as both Dodo Power & Gas and Commander Power ~ Electricity distributors’ customer shares are based on the Australian Energy Regulator’s State of the Energy Market 2018 (December 2018) Note: the customer share total exceeds 100% due to rounding of decimals. 23 electricity Investigations were upgraded to Stage 2 during the year, 350 were upgraded to Stage 3 and 87 Investigations were upgraded to Final Stage.
56 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2019 ANNUAL REPORT 57 ELECTRICITY ELECTRICITY
Complaint trends for electricity companies
Electricity retail Electricity retail
1st Energy Pty AGL Sales Alinta Energy Future X Power GloBird Energy Lumo Energy Australia
6,785 1,107 342 951 1,001 156 1,993 89 3,980 1,440 635 624 107 72 1,193 1,184 158 3,011 2,955 2,869 1,054 42 46 69 35 16 7 0
14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19
amaysim Blue NRG Click Energy Macquarie Bank Limited Momentum Energy Neighbourhood Energy
50 91 753 192 1,060 547 30 24 431 582 616 21 22 34 254 453 239 331 21 0 3 0 0
14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19
Commander Power CovaU Delta Electricity Next Business Energy Onsite Energy Solutions Origin Energy
5,515 32 27 29 26 3,664 23 23 20 2,386 2,593 15 16 1,952
5 7 7 1 2 0 0 0
14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19
Diamond Energy Dodo Power & Gas EnergyAustralia People Energy Powerdirect Powershop Australia
20 549 7,771 1,181 148 17 205 203 131 175 884 800 144 11 12 305 4,251 127 85 9 244 86 2,974 2,877 63 188 184 2,357 359 272
14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19
EnergyAustralia (Yallourn) ERM Power Retail FlowPower QEnergy Red Energy Simply Energy
98 1,070 2,639 88 92 932 801 745 800 2,013 11 65 1,539 1,656 10 9 1,367 3 3 5 34 3 2 1 0 0 0 0
14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19
Note: Complaint numbers represent the actual number of complaints EWOV received for each electricity company and don’t take into account the size of the company’s customer base. Note: Complaint numbers represent the actual number of complaints EWOV received for each electricity company and don’t take into account the size of the company’s customer base. 58 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2019 ANNUAL REPORT 59 ELECTRICITY
Electricity retail
Stanwell Corporation Sumo Power Tango Energy
106 858 720
41 227 65 11 0 0 1 2
14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19
Electricity distribution
AusNet Services CitiPower Jemena Electricity Networks (Vic)
959 211 843 506 792 183 716 169 394 647 146 140 245 241 267
14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19
Powercor Australia United Energy Distribution
498 960 431 353 698 738 719 312 315 495
14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19
Electricity transmission
AusNet Services Basslink TransGrid
8
3
1 1 0 0 0
14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19
Note: Complaint numbers represent the actual number of complaints EWOV received for each electricity company and do not take into account the size of each company's customer base.
60 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2019 ANNUAL REPORT 61 GAS
Gas case trends
At 30 June 2019, 28 gas companies business gas customers in Victoria,29 were EWOV scheme participants who have been able to choose — 19 natural gas retailers, 4 natural their natural gas retailer since 2002. 10,384 gas distributors and 4 liquefied They can’t choose their distributor, CASES petroleum gas (LPG) retailers. because each of the four natural gas distributors owns and operates 8% Operating within the National a network of pipes in a specific part Energy Market, Victoria’s natural of the state. Customers using LPG gas industry is privately owned and at home, or in their business, have independently regulated. There are a choice of LPG retailers or resellers 2.02 million residential and small operating in their area. 33% OF ALL CASES 5-year history
Retail cases Distribution cases
LPG cases 186 12,279 1,071 9,931 9,977 886 Enquiries 9,462 9,398 406 766 4%
539 550 10,198 129 98 Complaints 86 87 85 8% 2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19
Note: There were also 135 non company specific gas cases. 1,612 BY CUSTOMER TYPE Investigations 19% Residential 94% 9,759
Business 6% 598
1,656 Government / Not-for-profit <1% 27 Investigations finalised 17% 29 Essential Services Commission 2018, Victorian Energy Market Report: 2017-18
Image © 2017 Sammy Bailey, used under licence from Austockphoto
62 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2019 ANNUAL REPORT 63 GAS GAS
Main issues Gas cases received in 2018-19
Billing 48% 4,943
Credit 21% 2,194 2017-18 2018-19 Customer Overall Overall Unassisted Assisted Total Company Enquiries Investigations share cases cases Referrals Referrals Complaints Provision 12% 1,285 NATURAL GAS RETAIL^ Transfer 12% 1,267 AGL 26% 2,305 2,138 4 234 1,505 395 2,134 Alinta Energy 3% 512 556 3 54 424 75 553 Supply 2% 185 amaysim <1% 15 39 0 5 32 2 39 Customer service 1% 151 Click Energy≈ <1% 525 458 1 39 369 49 457 CovaU <1% 15 12 0 0 7 5 12 Land 1% 130 Dodo Power & Gas 2% 120 141 2 9 101 29 139 EnergyAustralia 21% 1,889 1,658 7 144 1,208 299 1,651 Marketing 1% 114 GloBird Energy <1% 0 28 1 5 19 3 27 General enquiry 1% 81 Lumo Energy Australia 7% 845 817 5 61 636 115 812 Momentum Energy 3% 227 311 4 32 222 53 307 Privacy <1% 34 Origin Energy 18% 1,727 1,311 9 126 974 202 1,302 Powershop Australia <1% 1 21 1 6 13 1 20 Red Energy 8% 617 553 7 52 419 75 546 Simply Energy 10% 1,030 1,011 7 102 709 193 1,004 Sumo Power <1% 148 343 5 41 260 37 338 Tas Gas Retail <1% 1 1 0 0 1 0 1 Sub issues Weston Energy <1% 0 0 0 0 0 0 0 TOTAL 9,977 9,398 56 910 6,899 1,533 9,342 NATURAL GAS DISTRIBUTION BILLING TRANSFER MARKETING AusNet Services~ 34% 267 217 9 37 150 21 208
High 1,770 Delay 413 Misleading 79 Australian Gas Networks* 33% 280 177 21 70 78 8 156 Error 1,037 In Error 303 Pressure Sales 19 Enwave Victorian Networks Pty Ltd 0 0 1 0 0 1 0 1 Backbill 435 Without Consent 223 Information 8 Multinet Gas Vic* 34% 524 371 6 43 279 43 365 Estimation 409 Contract Terms 154 Other 8 Concession 279 Objection 121 TOTAL 1,071 766 36 150 508 72 730 Refund 226 Cooling-Off Rights 53 LPG Fees and Charges 185 GENERAL ENQUIRY Tariff 154 Elgas 55 51 1 9 39 2 50 Delay 137 SUPPLY Energy 81 Origin Energy LPG 31 32 0 6 21 5 32 Meter 109 Powergas 0 1 0 0 1 0 1 Format 71 Quality 91 Bulk Hot Water 67 Off-Supply - Unplanned 61 LAND Supagas 1 1 0 0 1 0 1 Off-Supply - Planned 23 Other 64 TOTAL 87 85 1 15 62 7 84 Variation 10 Property Damage 67 Network Assets 56 NON COMPANY SPECIFIC CREDIT Other 7 Non Company Specific 133 135 93 42 0 0 42 CUSTOMER SERVICE Disconnection 947 TOTAL 133 135 93 42 0 0 42 Poor Service 58 Collection 694 PRIVACY TOTAL 11,268 10,384 186 1,117 7,469 1,612 10,198 Payment Difficulties 543 Failure to Consult / Inform 42 Deliveries Stopped 10 Incorrect Advice / Information 28 Disclosure refused by Provider 9 Failure to Respond 23 Other 9 ^ Gas residential customer shares are based on the Essential Services Commission, Victorian Energy Market Report 2017-18 Details Released 7 * Source: Australian Gas Infrastructure Group, Delivering for Australians: 2018 Annual Review. PROVISION Details Requested by Provider 5 ~ Source: AusNet Services, Who we are [webpage], Available at: www.ausnetservices.com.au/en/Misc-Pages/Links/About-Us/Who-we-are Details Obtained Without Consent 4 ≈ Click Energy data includes some amaysim numbers New Connection 643 Existing Connection 544 Disconnection 87 Note: 8 gas Investigations were upgraded to Stage 2 during the year, 146 Investigations were upgraded to Stage 3 and 29 Investigations were upgraded to Final Stage. Deliveries Stopped 11
64 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2019 ANNUAL REPORT 65 GAS GAS
Complaint trends Natural gas retail for gas companies Tas Gas Retail Weston Energy
Natural gas retail 1 1 0 0 0 0 0
AGL Alinta Energy amaysim 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19
3,341 602 39 553 2,601 512 2,334 2,288 2,134 Natural gas distribution 287 262 15 AusNet Services Australian Gas Networks Enwave Victorian Networks 0
14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19
255 261 Click Energy CovaU Dodo Power & Gas 208 230 174 172 147 156 131 117
1 0 0 0 0 521 233 457 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 190 15 139 139 12 119 153 Multinet Gas Vic 79 4 3 12
14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19
EnergyAustralia GloBird Energy Lumo Energy Australia 514 442 365 234 234
3,053 950 967 868 843 812 14-15 15-16 16-17 17-18 18-19 2,039 1,974 1,879 1,651 27
0 0 0 0
14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 LPG
Momentum Energy Origin Energy Powershop Australia Elgas Origin Energy LPG Powergas
2,785 307 46 2,238 68 55 54 226 1,690 1,715 50 50 32 20 26 29 1,302 130 21 80 8 1 0 0 1 0
14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19
Red Energy Simply Energy Sumo Power Supagas
1,113 609 1,067 1,026 338 546 920 1,004 485 419 375 148 7 2 0 0 1 1 1 1
14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19
Note: Complaint numbers represent the actual number of complaints EWOV received for each gas company and do not take into account the size of each company's customer base. Note: Complaint numbers represent the actual number of complaints EWOV received for each gas company and do not take into account the size of each company’s customer base. 66 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2019 ANNUAL REPORT 67 WATER
Water case trends
At 30 June 2019, 19 water These corporations service corporations were EWOV scheme 2.7 million30 residential and business participants — 3 metropolitan customers across Victoria — providing 1,721 retailers, 1 metropolitan wholesaler, water supply, sewage and trade CASES 11 regional urban, 2 rural and 2 rural waste disposal and treatment, water 11% urban. All are State-owned water delivery for irrigation and domestic corporations constituted under the and stock purposes, drainage and Water Act 1989. salinity mitigation services. Some of them also manage bulk water storages and designated recreational areas throughout Victoria. 6% OF ALL CASES
5-year history
Metropolitan retail Regional urban
Metropolitan wholesale Rural
1,785 1,704 107 474 1,510 Enquiries 435 1,350 406 395 401 13% 1,140
105 1,614 85 68 69 79
Complaints 27 36 44 24 27 11% 2014-15 2015-16 2016-17 2017-18 2018-19 2014-15 2015-16 2016-17 2017-18 2018-19
197 BY CUSTOMER TYPE Investigations 9% Residential 85% 1,471
Business 13% 223
179 Government / Not-for-profit 2% 27 Investigations finalised
22% Note: There were also 74 non company specific water cases. 30 Essential Services Commission 2018, Water performance report 2017-18: Performance of Victorian urban water and sewerage businesses, 10 December
68 ENERGY AND WATER OMBUDSMAN (VICTORIA) WATER WATER
Main issues Water cases received in 2018-19
2017-18 2018-19 Billing 51% 875 Customer Overall Overall Unassisted Assisted Total Company Enquiries Investigations Land 14% 236 share cases cases Referrals Referrals Complaints
Credit 13% 226 METROPOLITAN RETAIL^ City West Water Corporation 23% 409 336 10 63 236 27 326 Provision 9% 149 South East Water Corporation 38% 441 380 7 73 260 40 373 Yarra Valley Water Corporation 40% 500 424 11 97 260 56 413 Supply 8% 145 TOTAL 1,350 1,140 28 233 756 123 1,112 General enquiry 2% 42 METROPOLITAN WHOLESALE Melbourne Water Corporation 24 27 1 4 15 7 26 Customer service 2% 42 REGIONAL URBAN Privacy <1% 6 Barwon Region Water Corporation 22% 37 52 0 8 39 5 52 Central Gippsland Region Water 10% 28 23 0 7 16 0 23 Corporation Central Highlands Region Water 10% 53 51 1 8 37 5 50 Corporation Coliban Region Water Corporation 10% 78 52 0 12 32 8 52 East Gippsland Region Water Corporation 3% 11 16 3 4 8 1 13 Goulburn Valley Region Water Corporation 8% 14 17 2 3 11 1 15 Grampians Wimmera Mallee Water 4% 14 17 0 4 13 0 17 Sub issues Corporation Lower Murray Urban and Rural Water 5% 11 12 0 5 4 3 12 Corporation North East Water Corporation 7% 26 25 0 3 18 4 25
BILLING CREDIT GENERAL ENQUIRY South Gippsland Region Water Corporation 3% 10 19 2 4 11 2 17 Wannon Region Water Corporation 6% 30 41 5 13 19 4 36 High 317 Collection 100 Water 42 Western Region Water Corporation 9% 58 60 1 15 33 11 59 Fees and Charges 210 Restriction 72 Error 113 Payment Difficulties 54 Westernport Region Water Corporation 2% 25 16 0 5 4 7 16 Backbill 54 CUSTOMER SERVICE TOTAL 395 401 14 91 245 51 387 Other 43 Concession 35 PROVISION Incorrect Advice / Information 15 RURAL~ Format 34 Poor Service 13 Gippsland & Southern Rural Water 16% 15 14 1 6 6 1 13 Refund 23 Existing Connection 87 Failure to Respond 9 Corporation Meter 16 New Connection 57 Failure to Consult / Inform 5 Goulburn-Murray Rural Water Corporation 52% 40 45 0 8 26 11 45 Estimation 14 Disconnection / Restriction 5 Grampians Wimmera Mallee Water 19% 20 5 0 4 1 0 5 Delay 9 Corporation Tariff 7 PRIVACY Lower Murray Urban and Rural Water SUPPLY 13% 10 15 0 2 9 4 15 Other 3 Corporation LAND Quality 60 Details Obtained Without Consent 1 TOTAL 85 79 1 20 42 16 78 Sewer / Stormwater 31 Details Released 1 NON COMPANY SPECIFIC Property Damage 104 Overflow / Blockage Disclosure refused by Provider 1 Non Company Specific 74 74 63 11 0 0 11 Network Assets 80 Off-Supply - Unplanned 24 Other 28 Water Licensing 18 TOTAL 1,928 1,721 107 359 1,058 197 1,614 Easement 21 Off-Supply - Planned 10 Variation 2 Vegetation Management 3 ^ Water corporations’ sector shares are based on customer numbers in the Essential Services Commission, Water performance report 2017-18 (December 2018). ~ Rural water service providers sector shares are based on the 2017-18 EWOV Annual Report.
Note: the customer share total exceeds 100% due to rounding of decimals. 2 water Investigations were upgraded to stage 2 during the year, 17 investigations were upgraded to stage 3 and 1 investigation was upgraded to Final Stage.
70 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2019 ANNUAL REPORT 71 WATER WATER
Complaint trends for water companies
Metropolitan retail Regional urban Central Gippsland Region Central Highlands Region City West Water Corporation South East Water Corporation Yarra Valley Water Corporation Barwon Region Water Corporation Water Corporation Water Corporation
538 93 469 619 615 616 429 587 558 39 57 388 492 66 37 50 50 448 413 30 42 326 424 373 55 52 28 41 37 23
14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19
Metropolitan wholesale
Melbourne Water Corporation Coliban Region Water Corporation East Gippsland Region Water Corporation Goulburn Valley Region Water Corporation
30 30 44 85 77 78 27 34 53 52 13 27 26 11 15 23 9 9 9 13
14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19
Rural
Gippsland Southern Rural Water Corporation Goulburn-Murray Rural Water Corporation North East Region Water Corporation South Gippsland Region Water Corporation Wannon Region Water Corporation
49 44 17 42 45 35 36 40 35 13 31 28 35 11 14 14 26 25 22 12 13 23 8 8 10
14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19
Rural urban Grampians Wimmera Mallee Lower Murray Urban and Water Corporation Rural Water Corporation Western Region Water Corporation Westernport Region Water Corporation
27 55 55 55 59 51 22 22 24 19 16 33 15 27 30 13 26 13 22 4
14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19
Note: Complaint numbers represent the actual number of complaints EWOV received for each water company and do not take into account the size of each company's customer base. Note: Complaint numbers represent the actual number of complaints EWOV received for each water company and do not take into account the size of each company's customer base.
72 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2019 ANNUAL REPORT 73 FINANCIAL STATEMENTS FINANCIAL STATEMENTS
Income Statement Balance Sheet
FOR THE YEAR ENDED 30 JUNE 2019 AS AT 30 JUNE 2019
2019 2018 2019 2018
$ $ $ $
Revenue 8,799,546 11,965,048 Current Assets
Employee benefits expense (7,249,834) (6,461,350) Cash and cash equivalents 4,613,692 6,159,351
Depreciation and amortisation expense (274,483) (266,463) Financial asset - term deposits 3,182,155 2,564,582
Profit on disposal of plant and equipment - 1,636 Trade debtors and other assets 181,198 71,529
Rental expense (841,565) (803,582) Total Current Assets 7,977,045 8,795,462
Administration expenses (705,922) (645,139)
Consultancy expenses (45,681) (209,650) Non-Current Assets
Research & Communication expenses (172,027) (179,010) Plant and equipment 1,828,203 407,989
Training and development (185,669) (109,057) Intangibles 231,133 206,281
Total Non-Current Assets 2,059,336 614,270
(Loss)/Profit before income tax expense (675,635) 3,292,433 TOTAL ASSETS 10,036,381 9,409,732
Income tax expense - -
Current Liabilities
(Loss)/Profit for the year (675,635) 3,292,433 Trade and other payables 1,114,389 674,097
Other Comprehensive (Loss)/Profit - - Provisions 1,031,011 1,132,143
TOTAL CURRENT LIABILITIES 2,145,400 1,806,240
TOTAL COMPREHENSIVE (LOSS)/ PROFIT (675,635) 3,292,433
Non-Current Liabilities
Provisions and office lease incentives 1,287,014 323,890
Total Non-Current Liabilities 1,287,014 323,890
TOTAL LIABILITIES 3,432,414 2,130,130
Net Assets 6,603,967 7,279,602
Members’ Equity
Retained surplus 6,603,967 7,279,602
TOTAL MEMBERS’ EQUITY 6,603,967 7,279,602
74 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2019 ANNUAL REPORT 75 FINANCIAL STATEMENTS
Cashflow Statement
FOR THE YEAR ENDED 30 JUNE 2019
2019 2018
$ $
Cash Flows from Operating Activities
Levy receipts from Members (inclusive of goods and services tax) 9,921,993 10,733,708
Payments to suppliers and employees (inclusive of goods and (10,262,339) (9,333,934) services tax)
Interest received and other income 169,261 2,156,734
Net cash used in operating activities (171,085) 3,556,508
Cash Flows from Investing Activities
(Payments to) acquire / Proceeds from financial assets (617,573) (1,468,176)
Payments for plant and equipment and intangibles (1,719,549) (276,033)
Proceeds from office lease incentives 962,548
Net cash used in investing activities (1,374,574) (1,744,209)
Net (decrease)/increase in cash and cash equivalents (1,545,659) 1,812,299
Cash and cash equivalents at the beginning of the 6,159,351 4,347,052 Financial Year
Cash and cash equivalents at the end of the 4,613,692 6,159,351 Financial Year
76 ENERGY AND WATER OMBUDSMAN (VICTORIA) We can help if you have a problem with an electricity, gas or water company which you can’t resolve directly with that company. Our services are free and available to everyone.
FREE CALL 1800 500 509
Calls from mobile phones may attract charges. FILL OUT OUR ONLINE COMPLAINT FORM We can ring you back. ewov.com.au
If calling from a restricted phone service, ring 12550 WRITE TO US (Telstra reverse charges) and ask for (03) 8672 4460. GPO Box 469 Melbourne 3001 We will accept the reverse charges and the call cost. Interpreter service: 131 450 EMAIL US National Relay Service: 133 677 [email protected]
FAX US 1800 500 549 (free fax)
ABN: 57 070 516 175