Annual Report 2014–2015 Accessibility · Independence · Fairness · Accountability · Ef ciency · Effectiveness Letter of Compliance

The Honourable Mark Bailey MP Minister for Main Roads, Road Safety and Ports and Minister for Energy and Water Supply GPO Box 2644 Brisbane Qld 4001 15 September 2015 Dear Minister I am pleased to present the 2014–15 Annual Report and Financial Statements for the Energy and Water Ombudsman Queensland. I certify that this annual report complies with: • the prescribed requirements of the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009; and • the detailed requirements set out in the Annual report requirements for Queensland Government agencies. A checklist outlining the annual reporting requirements can be found at page 86 of the annual report or accessed at www.ewoq.com.au/publicationsmedia/annualreports.aspx. Yours sincerely

Forbes Smith Energy and Water Ombudsman About this report

Communication objective Availability and access The Energy and Water Ombudsman Queensland (EWOQ) Online provides a dispute resolution service to small energy customers The 2014–15 annual report is available online, in Queensland and small water customers in south east visit www.ewoq.com.au/Publicationsmedia/ Queensland. The people pictured on this cover represent the AnnualReports.aspx. diverse range of customers we assist. Printed copies This annual report presents information about the performance For a printed copy of the annual report, or for of the Ombudsman scheme for the period 1 July 2014 to 30 June more information, contact: 2015. It contains a record of EWOQ activities and achievements for the 2014–15 nancial year against our objectives and Senior Communications and Marketing Of cer summarises our future priorities and challenges. Each section of Energy and Water Ombudsman Queensland the report is tabbed for ease of navigation and a glossary of terms PO Box 3640 and an index are available at the end of the report. South Brisbane BC QLD 4101 While this report is produced under the prescribed requirements Phone: 1800 662 837 of the Financial Accountability Act 2009 and the Financial and Email: [email protected] Performance Management Standard 2009, the report has been Interpreter service written for the bene t of all our stakeholders including: EWOQ is committed to providing accessible • Queensland residential and small business energy customers services to Queenslanders from all culturally and • south east Queensland residential and small business water linguistically diverse backgrounds. If you have customers dif culty understanding the annual report, you can • Queensland energy, and south east Queensland water, contact us on 1800 662 837 and we will arrange an retailers and distributors interpreter for you, free of charge. • members of Queensland State Parliament. ISSN: 1839-308X © Energy and Water Ombudsman Queensland 2015 i energy+water ombudsman QUEENSLAND Our customers and their issues

Highlights 2014–15

In the community: 569 water – Participated in 11 tv and radio interviews 803 gas – 74 stories published/ broadcast about 9,539 electricity EWOQ – Participated in community training sessions, workshops We received and information days. 11,133 cases (-21% on 2013–14)

EWOQ closed cases: Resulting in a record: 11,0 4 9 $1,106,611 in (-23% on 2013–2014) outcomes for customers

Our organisation: – Income of $6,041,000, expenses of $6,033,000 – 40 full-time equivalent employees

Top three complaints: Billing Credit Customer service ’10–’11 ’11–’12 ’12–’13 ’13–’14 ’14–’15 Five year closed cases See Appendix 1 (page 83) for figures.

ANNUAL REPORT 2014–2015 1 EWOQ’s priorities

The Energy and Water Ombudsman Queensland (EWOQ) was first established as the Energy Ombudsman Queensland (EOQ) on 1 July 2007, to provide a free and independent dispute resolution service for small electricity and reticulated gas customers in Queensland. On 1 January 2011, our jurisdiction was expanded to investigate complaints about water suppliers in south-east Queensland, and EOQ became EWOQ. We are committed to providing an effective, high-quality, fair and confidential service for residential and small business customers who have been unable to resolve a problem with their electricity, gas or water supplier. With offices in Brisbane, Cairns and Rockhampton, we can work directly with Queensland customers and suppliers to investigate and resolve complaints.

Vision Values A high performing, independent Commitment organisation making a valued • We set high standards and expectations contribution to an efficient and fair • We are open and transparent energy and water sector. • We are responsive to change • We position ourselves for the future Mission Collaboration To serve the people of • We seek, provide and act on feedback from stakeholders and staff Queensland by providing a • We work together to achieve our vision timely, effective, independent • We empower and trust each other and just way of resolving • We support honest and robust conversations disputes with their energy Excellence and water supplier. • We provide a rich learning environment • We encourage and embrace innovation • We are an employer of choice

2 energy+water ombudsman QUEENSLAND EWOQ’s priorities

Our role This year we focused on the following key priorities: The primary functions of EWOQ are to: • achieving best practice in the resolution of disputes between scheme participants and small customers • receive, investigate and facilitate the resolution • raising awareness and proactively promoting our of disputes between Queensland’s small energy services to small energy and water customers, customers, small water customers in south east with an emphasis on Aboriginal people, Torres Strait Queensland and their energy and water retailers Islanders, multicultural groups and the aged and distributors • identifying systemic issues • promote the services of EWOQ to all eligible customers throughout Queensland • implementing the recommendations from an independent review of the office • identify systemic issues arising out of complaints received from customers. • preparing for the commencement of the National Energy Customer Framework in Queensland on We achieve this through a process which is free, 1 July 2015. fair, independent, accessible, accountable, effective and efficient. We take into account the rights and A review of our performance against the Strategic Plan responsibilities of customers and scheme participants is on pg. 16. under relevant legislation, codes and standards to achieve a fair and reasonable outcome. Into the future We continually review our business processes and Our structure customer service to ensure we are delivering to the EWOQ was established under the Energy and Water people of Queensland a timely, effective, independent Ombudsman Act 2006 (the Act) to provide for the and just dispute resolution service. In the coming investigation and resolution of particular disputes involving financial year we will be: energy and water suppliers. The Energy and Water • reviewing our funding model with a view to making Ombudsman (the Ombudsman) is not subject to direction recommendations to government about improving the by anyone, however, must consider the advice of the way in which we bill scheme participants Advisory Council to the Energy and Water Ombudsman • commencing a new whole of office staff performance (Advisory Council) (pg. 8) in performing certain functions management and development framework under the Act. The Executive Management Group (pg. 49) assists the Ombudsman in the stewardship of EWOQ. • implementing a telephone recording system to enable us to monitor, and continuously improve, the standard Strategic direction of service we provide to our customers • conducting our biennial customer and staff Each year EWOQ develops a Strategic Plan (pg. 16) which satisfaction surveys guides our work and confirms our vision for the office. • expanding our outreach to the indigenous community The risks to meeting our objectives under the Strategic through our dedicated indigenous outreach officer. Plan are: As for complaints, our analysis suggests that while the • loss of confidence in our effectiveness by number of complaints we are receiving has fallen, and government, scheme participants, residents and stabilised, their complexity has increased. We expect this small business owners trend to continue in the 2015–16 financial year. • significant changes in the regulatory environment • substantial increases in complaints to our Office • attraction and retention of qualified staff.

ANNUAL REPORT 2014–2015 3 Energy and Water Ombudsman’s Message

In many ways, the 2014–15 financial year has been a remarkable one. The number of cases received by my office fell by 21%, continuing a trend which began last year when, for the first time in our history, the number of cases received fell against the previous year.

Energy and Water Ombudsman offices in other states and conciliation between scheme participants and their experienced similar falls in complaint numbers. There would customers facilitated by my office. However, under the Act appear to be several reasons for the decline in complaints. I have the power to make a final binding order against a scheme participant. Firstly, in the past complaints were largely generated by electricity retailers making significant changes to their In respect of one scheme participant, Sanctuary Energy billing systems resulting in billing errors and delays. There Pty Ltd (Sanctuary), I was forced to make 11 final orders were no such changes this year. Secondly, there is some due to the high number of complaints and Sanctuary’s evidence that electricity retailers have improved the way in inability to resolve complaints through negotiation and which they deal with customer complaints at the front line: conciliation. These orders, which are on our website, evidence Sanctuary’s repeated failure to respond to my • Data obtained by the Queensland Competition office’s requests for information in respect of long standing Authority shows that the number of customer complaints by its customers. complaints to electricity retailers remained steady, but fewer customers are coming to us. In addition, on a number of occasions Sanctuary failed to • There was a significant drop in the number of pay their compulsory fees on time resulting in my office customers who returned to us, after being advised they having to defer several projects designed to enhance the needed to contact their retailer in the first instance to services we provide. On one occasion it was necessary for resolve their complaint. me to engage a debt collector to pursue fees. • Additionally, there has been a fall in the number of I am pleased to report that Sanctuary improved its customers returning to us after having their complaint performance and we enjoy a more productive and effective dealt with at a higher level with their scheme relationship. The number of open complaints at the end of participant. the financial year has been significantly reduced and all of Sanctuary’s fees have been paid. This is a most welcome development, as it is in a customer’s interest to have their complaint dealt with by Throughout this difficult period I kept the Regulator fully scheme participants rather than being forced to take up and appropriately informed of Sanctuary’s conduct and I their issue with my office. am grateful for the action taken by him and his officers. Of course statistics only tell part of the story. Throughout I must thank the EWOQ Advisory Council for their advice. the year we again assisted thousands of customers and The Sanctuary issues were not without their challenges the case studies in this report reflect the serious issues and I appreciate their support. faced by energy and water customers, particularly in To my staff, thank you. Customers sometimes take out respect of their bills and their capacity to pay. their frustrations on our front line staff and investigators. Indeed we achieved a record number of monetary This was especially so this year for Sanctuary customers. outcomes this financial year. Given that the value of Your patience, understanding and resilience are outcomes was achieved from a smaller complaints base, remarkable. Elsewhere in the office staff understood and we think that the scheme is being used for more difficult accepted the difficulties we faced due to Sanctuary’s or complex cases, rather than simple complaints which conduct and the impact it was having on our work. retailers have been able to resolve themselves. Despite all this we managed to achieve significant redress The year was remarkable for another reason. For the first for our customers. time since the scheme commenced in 2007 final orders were made against a scheme participant. Under the

Energy and Water Ombudsman Act 2006 (the Act) EWOQ is to give residential and small business energy and water customers a free, timely, independent, and effective way Forbes Smith of resolving their disputes. In the overwhelming majority Energy and Water Ombudsman of cases this is achieved through informal negotiation

4 energy+water ombudsman QUEENSLAND Our customers and their issues

Top 5 monetary outcomes

95 debt waivers ($102,070) EWOQ helped 305 Queenslanders 200 refund cheques gain access to a ($231,033) Payment Plan or Payment Extension

243 billing adjustments ($403,883)

EWOQ negotiated as well as billing goodwill gestures for adjustments to the 504 customers value of $403,883

305 payment plans or extensions offered ($185,693)

“ I wanted to thank you very much for a great result. I 504 goodwill gestures received the cheque from ($115,171) [Retailer] and I very much appreciated all your help!” [Customer]

ANNUAL REPORT 2014–2015 5 Advisory Council Chair’s Message

I am pleased to report that this has been a productive year for the Advisory Council and EWOQ. There has been a reduction in the level of complaints, which can in part be attributed to the efforts of scheme participants in improving performance in customer service.

The year has also seen improved operational The openness and willingness of the Ombudsman, performance within EWOQ. The Council was pleased Forbes Smith, to engage with the Advisory Council, to note the achievements of the indigenous officer makes for an effective working relationship between whose role will heighten indigenous and other him and the Council. consumer awareness of EWOQ. Advisory Council members perform an important service. The industry environment is a quickly changing They provide valuable insights to the Ombudsman and one, not least as a consequence of solar and other do so in a spirit of genuine contribution, collegiality and technologies. The Council is alert to these and to the respect, for which I thank them. need for EWOQ to be engaged in addressing them. During the year, there were a number of changes to the Council. We farewelled Mike Swanston, who over a number of years, made a significant contribution to the work of the Council. We also farewelled Alison Mobbs, who very positively impacted Council’s work particularly in relation to regional areas. We welcomed members Julie-Anne Schafer Andrew Bills and Kate Farrar who have proven to be Chair valuable additions.

6 energy+water ombudsman QUEENSLAND Our customers and their issues

Who contacted EWOQ?

8 government 545 small business 10,496 residential The number of complaints from small business customers reached 5%.

Complaints from of all complaints; residential customers a slight decline from made up 95% 96% in 2013–14

“ Whilst $60.00 does not seem like a lot of money, to an aged pensioner, it is a lot, and I would like to thank you very much for all your assistance. I can assure you, I do appreciate it very much.” [Customer]

’10–’11 ’11–’12 ’12–’13 ’13–’14 ’14–’15 Customer profile See Appendix 1 (page 83) for figures.

ANNUAL REPORT 2014–2015 7 Advisory Council to the Energy and Water Ombudsman

The Advisory Council to the Energy and Water Ombudsman (Advisory Council) provides expert advice to the Ombudsman and the Minister responsible for energy and water on the effective and efficient conduct and operation of the EWOQ scheme. This helps to ensure the scheme is administered in a manner which is fair and just to consumers and suppliers. The Advisory Council: 2014–15 members • monitors the Energy and Water Ombudsman’s Chair: independence • Julie-Anne Schafer • advises the Ombudsman on policy, procedural and operational issues relating to the Act Industry representatives: • advises the Minister responsible for energy and water • Tanya Acheson – Ergon Energy on the funding of the Ombudsman’s functions • Andrew Bills – Origin Energy • at the end of the financial year, advises the Minister on • Kate Farrar – QEnergy the Ombudsman’s independence and functions of the office during the financial year. • Mark Harvey – City of Gold Coast • Mike Swanston – Energex (to February 2015) The Advisory Council generally meets every two months and consists of an independent chair and at least six other Consumer representatives: members appointed by the Minister. The other members • Carly Allen – QCOSS must consist of members drawn from scheme participants who represent the interests of industry members; and • Michael Gordon – Family Business Association an equal number of members drawn from groups who • Ian Jarratt – Queensland Consumers’ Association represent the interests of consumers. Members must • Alison Mobbs – Queensland Rural, Regional & Remote be appointed on the Chair’s recommendation, after Women’s Network (to April 2015) consultation with scheme participants, consumer groups • Mark Tucker-Evans – COTA Queensland and community welfare organisations. At least two of the industry members must represent the interests of retailers and at least one represents the interests of scheme participants that are water entities.

8 energy+water ombudsman QUEENSLAND Our customers and their issues

Time taken to resolve complaints

2% over 90 days 98% less than 90 days 97% less than 60 days 92% less than 28 days We again exceeded our service standard targets for this year.

EWOQ closed 10,148, in less than 28 days, or 92% of complaints against a target of 80%

“ Thank you for your time spent on our case, it was extremely helpful, I could not have solved this issue without your assistance.” [Customer]

’10–’11 ’11–’12 ’12–’13 ’13–’14 ’14–’15 Time taken to resolve complaints See Table 1 (page 12) for figures and targets.

ANNUAL REPORT 2014–2015 9 Dispute resolution process

EWOQ’s approach is informal and based on the principles of alternative dispute resolution. Essentially, we look to establish the facts and issues to help the customer and their supplier better understand the problem and each other’s point of view. The outcome may be achieved by agreement between the customer and the supplier, or through conciliation.

Our jurisdiction • water issues outside the service areas of Gold Coast City Council, Logan City Council, Redland City Council, EWOQ was established to assist small consumers who Queensland Urban Utilities or Unitywater are classed as those whose electricity consumption • metered standpipes, raw water supplies, tradewaste, is under 100 megawatt hours a year, gas consumption storm-water harvesting or stand-alone recycled water. under one terajoule a year, all residential water customers and small businesses with water consumption under For complaints outside of EWOQ’s jurisdiction, 100 kilolitres a year. We can assist with unresolved Memoranda of Understanding (MoU) have been complaints about: formalised between EWOQ and the following agencies to facilitate the timely exchange of information and referral of • problems with payment cases which are outside of our jurisdiction to investigate: • account errors/disputes • Queensland Ombudsman • disconnections/restrictions • Department of Energy and Water Supply • damages and loss • Australian Competition and Consumer Commission • energy marketing • Australian Energy Regulator • energy contract issues • Queensland Competition Authority • vegetation management • Office of Fair Trading • supply quality and reliability • Australian Energy Market Commission. • extensions to supply • connection of supply Quality assurance • customer service issues EWOQ conducts a number of quality assurance (QA) • guaranteed service levels assessments annually to ensure that EWOQ’s case • equipment issues management practices are accurate, efficient and of a • burst pipes, leaks, blockages and spills. high standard. There are a number of complaints that EWOQ cannot QA assessments aim to: investigate and/or fall within the jurisdiction of other • ensure that EWOQ’s complaints staff apply our case government authorities. We cannot investigate handling policies and procedures consistently and complaints about: appropriately • energy or water suppliers if the customer has not • ensure that the outcomes achieved across the tried to resolve the matter with them first investigative teams are consistent, of a high quality • the fixing of prices or tariffs and fair and reasonable • a customer contribution to the cost of capital works • assist Senior Management in evaluating and improving • home suite products such as air conditioners, the performance of staff hot water systems, solar panels and home • provide an opportunity to identify areas where EWOQ’s electrician services offered by electricity retailers policies and procedures can be improved. • on-selling of energy or water to tenants in In 2014–15, we conducted QA assessments on: caravan parks, retirement villages and other multi-tenanted dwellings • general enquiry complaints with a focus on complaints outside of EWOQ’s jurisdiction • bottled LPG (liquefied petroleum gas) • compliance with business procedures for completing • electricity consumption over 100 megawatt hours a year data fields (name, address, case specific details etc.) • gas consumption over one terajoule a year within our complaint management system • water consumption over 100 kilolitres a year for • compliance with business procedures for actioning small businesses information in a timely manner. These assessments led to improvements to EWOQ’s business procedures and policies, and further training and development for staff.

10 energy+water ombudsman QUEENSLAND Dispute resolution process

How we handle complaints We may also request further action from the customer’s supplier such as a meter test. All contacts with EWOQ are called cases, and will be dealt with in one of the following ways: Where our investigations disclose that the supplier’s actions were appropriate the complaint will be closed, and • as a general enquiry about electricity, water, gas or the parties advised of the decision and our reasons. other issue that is not a complaint Where some error has been found we will try to • referred back to the energy or water supplier because negotiate a suitable outcome, for example: the customer has not attempted to resolve the matter before coming to EWOQ • a payment plan for an overdue account • referred to another organisation with whom we • reconnection of energy supply, or have a MoU because the complaint is outside • compensation for damage to equipment or property. EWOQ’s jurisdiction Step 3: Determination • registered as a ‘Complaint’ and assigned to a dedicated investigation officer. If EWOQ cannot achieve informal resolution of the complaint there are a number of ways the matter can Complaint stages be finalised. Step 1: Referral to higher level or investigation Firstly, a decision can be made under s. 22 of the Act to not investigate or to discontinue the investigation. There Once a case has been assigned to an investigation officer, were 20 cases finalised this way in 2014–15. the officer will discuss the resolution options with the customer. The customer may choose to have EWOQ refer Secondly, if a matter cannot be resolved via negotiation their complaint to a higher level within the energy or water or conciliation, the Energy and Water Ombudsman supplier, or begin a complaint investigation. may decide to make a final order requiring an energy or water distributor/retailer (scheme participant) to take Referral to Higher Level (RHL) certain action. This process gives people the option to escalate their Among other things, the Ombudsman can order energy complaint to a higher level within the energy or water and water suppliers to: supplier. When this option is chosen, EWOQ will prepare an RHL Notice that provides a summary of the customer’s • pay compensation complaint and requires the supplier to contact the • provide a non-monetary solution to remedy the dispute customer within five business days. If contact is not • amend a stated charge under the Act made, or the problem remains unresolved, customers can • cancel a negotiated contract request an investigation by EWOQ. • perform corrective work. Step 2: Investigation In 2014–15, the Energy and Water Ombudsman issued To assist in investigations, we may request information 11 final orders against Sanctuary Energy Pty Ltd from the complainant’s energy or water supplier such as: (Sanctuary), all of which were complied with. • account records • copies of letters and other correspondence • technical reports • details of any offers of settlement such as an apology, compensation or a good will payment, and • reasons for the decision made by the supplier regarding the complaint.

ANNUAL REPORT 2014–2015 11 Dispute resolution process

Scheme performance

Nearly half (48 per cent) of referrals were to the Queensland Energy and Water Regulator, up from 40 per cent last year. Referrals to the Office of Fair Trading account for 45 per cent of all referrals this year, compared to 53 per cent last year (Table 2).

Performance against service standards Queensland was conducted. We anticipate the next independent review will be conducted in the latter part We again exceeded our service standards which form of 2016. part of the Queensland Government’s Performance Management Framework. The number of complaints Following a public tender process, an independent closed in less than 28 days has improved slightly this year, reviewer, The Consultancy Bureau (TCB), was appointed up from 90 per cent last year to 92 per cent this year. by the Advisory Council and asked to assess the extent to The proportion of cases still open after 90 days, however, which EWOQ was achieving the main purpose of the Act increased from 1 per cent to 2 per cent this year. This by reference to the National Benchmarks. rise can be attributed to the difficulty we experienced in TCB commenced the review in July 2013 and reported resolving Sanctuary Energy cases in a timely way. to the Advisory Council in December. On 23 January 2014, the Advisory Council endorsed the final report. Independent review The review found that the office is performing highly effectively, providing quality dispute resolution services, In addition to its legislative obligations, EWOQ has and exceeding all of the National Benchmarks. The review been designed to meet or exceed the principles of an made a number of recommendations designed to improve effective customer dispute resolution scheme contained the office’s performance, the majority of which were in the Benchmarks for Industry-Based Customer Dispute accepted by EWOQ. Regular feedback is provided to the Resolution Schemes 1997 (National Benchmarks). Advisory Council on the progress of implementation. Benchmark 6.11 provides that the operation of a customer During 2014–15 we completed implementation of the dispute resolution scheme should be reviewed within majority of the review recommendations. three years of its establishment, and regularly thereafter, by an independent party. A review of the Energy The report can be accessed at www.ewoq.com.au/ Ombudsman Queensland was conducted in 2010, and Publicationsmedia/IndependentReview.aspx in 2013 a review of the Energy and Water Ombudsman

Table 1: EWOQ performance targets – time taken to resolve complaints Target 2010–11 2011–12 2012–13 2013–14 2014–15 Less than 28 days 80% 11,665 92% 12,120 90% 12,889 91% 12,901 90% 10,148 92% Less than 60 days 90% 12,345 97% 12,923 96% 13,697 97% 13,852 97% 10,694 97% Less than 90 days 95% 12,542 99% 13,260 98% 13,932 99% 14,105 99% 10,818 98% Over 90 days < 95% 160 1% 262 2% 164 1% 177 1% 231 2%

Table 2: Cases referred to other organisations Agency 2010–11 2011–12 2012–13 2013–14 2014–15 Australian Competition and Consumer Commission n/a n/a n/a n/a 2 Queensland energy and water regulator* 651 502 1,069 914 848 Office of Fair Trading 336 613 1,174 1,196 791 Queensland Ombudsman 44 37 71 106 75 Queensland Competition Authority 23 13 23 32 27 Australian Energy Regulator 0 10 11 8 9 Other agencies** 354 0 0 0 0 Total 1,408 1,175 2,348 2,256 1,752

* Includes the Department of Energy and Water Supply and Queensland Water Commission and as of 2014 referred to as the Queensland Energy and Water Regulator. ** Other agencies are those with which EWOQ does not have a Memorandum of Understanding e.g. other industry ombudsmen schemes or other government agencies.

12 energy+water ombudsman QUEENSLAND 0 > 11 >21 >51 >101 >201 >501

Customer location 82 per cent of cases were from south east Queensland, down from 85 per cent last year. The local government area of Brisbane accounted for 31 per cent (or 1581 cases) of all complaints across the state, followed by the Gold Coast (963 cases or 19 per cent), Moreton Bay (553 cases or 11 per cent) and Sunshine Coast (524 cases or 10 per cent). Variances in numbers are attributable to customers being overseas, interstate or not providing EWOQ with address details. Figures exclude residential cases where the customer did not disclose a Queensland suburb/postcode or was from interstate or overseas, as well as non- residential cases. For this report, SEQ is comprised of the following local government areas – Brisbane, Logan, Gold Coast, Sunshine Coast, Ipswich, Redland and Moreton Bay.

ANNUAL REPORT 2014–2015 13 Scheme performance

General Referral Refer back Refer to Level 1 Level 2 Level 3 Final Order ’10–’11 ’11–’12 ’12–’13 ’13–’14 ’14–’15 Enquiry Higher Invest. Invest. Invest. Level Figure 1: Closed case types Figure 2: How customers See Appendix 1 (page 83) for figures. contacted EWOQ

’10–’11 ’11–’12 ’12–’13 ’13–’14 ’14–’15 Phone Website Email Other

Case Types Contact method With the exception of level 3 investigations, all case types fell this year. See Appendix 1 (page 83) for figures. Refer to Higher Level cases decreased by 35 per cent. Level 1 and 2 investigations also fell significantly, down 42 per cent and 24 per cent respectively. Level 3 investigations increased significantly, up 76 per cent on 2013–14. This is a direct reflection of the Sanctuary Energy issues we have dealt with this year. For the first time in EWOQ’s history, the Ombudsman issued Final Orders under the Act. If a matter cannot be resolved via negotiation or conciliation, the Ombudsman may decide to make a final order requiring a scheme participant to take certain action.

14 energy+water ombudsman QUEENSLAND Scheme performance

’10–’11 ’11–’12 ’12–’13 ’13–’14 ’14–’15 Jul ’14 Aug ’14 Sep ’14 Oct ’14 Nov ’14 Dec ’14 Jan ’15 Feb ’15 Mar ’15 Apr ’15 May ’15 Jun ’15

Figure 3: Cases received and Figure 4: Cases received and closed 2014–2015 by month closed by year

Cases received Cases closed Cases received Cases closed Our performance “ I appreciate and thank you for the See Appendix 1 (page 83) for figures. very professional manner in which you resolved the issue.” [Customer]

ANNUAL REPORT 2014–2015 15 Scheme performance

Our performance against strategic plan The EWOQ Strategic Plan provides a four year road map for our organisation and contains our key priorities. Table 3 provides an overview of our achievements in 2014–15. Table 3: Performance measures and achievements Objective 1: Contribute to improved service delivery in the energy and water sector Strategy Performance indicators Achievements 2014–15 Resolve disputes in a Cases dealt with in accordance with service standards met (pg. 12) timely way established standards Level of customer and scheme customer satisfaction survey conducted on a biennial participant satisfaction with dispute basis. In 2012–13, 82% of customers rated our resolution services provided performance as satisfactory or better Number of outcomes obtained for $1,106,611 in monetary outcomes for customers customers over time Identify and report Number of reports concerning systemic issues reports provided to regulators monthly systemic issues systemic issues which meet systemic issues notices issued within established established content and timeliness  timeframes and monitored monthly (pg. 18) standards Collaborate with scheme Frequency and means of regular meetings with scheme participants, government participants to improve their engagement with scheme bodies and regulators (pg. 20) customer service delivery participants Contribute to the development Number of written submissions to four submissions written (pg. 20) of legislation and policy in the government and regulators on policy energy and water sector issues and proposed legislation Maintain a funding model that Percentage of level 1, 2 and 3 cases Closed cases July to June 2015: encourages the early resolution and refer to higher level cases – RHL: 2,879 (65%) of complaints over time – Level 1: 1,037 (23%) – Level 2: 322 (7%) – Level 3: 234 (5%) Publish reports and data on Number of reports published 2013–14 annual report published and awarded Silver in the performance of scheme the Australasian Reporting Awards. participants complaint statistics updated on website monthly 8 media releases issued Objective 2: Foster a culture of excellence Strategy Performance indicators Achievements 2014–15 Develop and maintain Deliver leadership development leadership training provided to managers and leadership capability across the training supervisors (pg. 52) office Number of staff undertaking higher register of staff willing to undertake higher duties duties developed and maintained Develop and retain highly Percentage of budget expended on budget reviewed to ensure covering training skilled staff staff training and development requirements Staff consider they are well trained Personal Development and Achievement Plans to undertake their role (PDAPs) developed and reviewed annually Establish and maintain clear Number of improvements to service finalised the implementation of the majority of expectations and standards delivery implemented following recommendations arising from Independent surveys of customers and feedback Review (pg. 12) from scheme participants Number of improvements to service 17 recommendations implemented to improve service delivery following internal quality delivery following quality assurance audits (pg. 10) assurance audits All staff have a performance and Personal Development and Achievement Plans (PDAPs) development plan developed and reviewed annually. New performance management framework to be introduced in 2015–16. Apply contemporary business Number of changes implemented change request register maintained and monitored management practices to our case management system to monthly improve functionality

16 energy+water ombudsman QUEENSLAND Scheme performance

Table 3: Performance measures and achievements (continued) Objective 3: Adhere to the principles of independence and accountability in all we do Strategy Performance indicators Achievements 2014–15 Afford procedural fairness Level of customer and scheme no allegations of failure to afford procedural fairness to customers and scheme participant satisfaction were made by customers or scheme participants. participants in discharging the Ombudsman’s functions Manage our Resources Unqualified audit report received report provided annually responsibly and transparently from Queensland Audit Office Discharge responsibilities and risk management training provided to managers functions within approved budget risk register finalised (pg. 51) Maintain a constructive and Number of briefings to the Advisory seven briefings provided to Advisory Council (pg. 8) open relationship with the Council Advisory Council Feedback from the Chair and positive feedback received from Council during members of the Advisory Council independent review Participation in national and Number of meetings and two ANZEWON meetings attended international ombudsman conferences, and other regular staff attendance at ANZOA industry networks engagements, with members of  group meetings the Australian and New Zealand Ombudsman Association and attendance at ANZOA members’ meeting (pg. 46) Australia and New Zealand Energy and Water Ombudsman Network Objective 4: Provide all Queenslanders with equal access to our service Strategy Performance indicators Achievements 2014–15 Promote the scheme Implement the communications 2014–15 Communications plan developed, approved, throughout Queensland plan promoting our role throughout and implemented (pg. 46) Queensland including to Aboriginal peoples, Torres Strait Islanders, multicultural groups, the aged and small business Number of complaints received from regularly monitored by Executive Management Group customers located outside south east Queensland Establish and maintain Number of meetings, and other regular attendance at community events and stakeholder stakeholder relationships engagement, with stakeholders meetings across all Queensland regions (pg. 46) Level of stakeholder satisfaction independent review rated accessibility of 7 to 8 out of 10 with the nature and extent of their office found by independent review to have achieved this engagement with our office  benchmark to a high level Provide a comprehensive Number of complaints received by 2,821 complaints received electronically range of means by which to email, on our website, or via our Ongoing maintenance of and updates to energy + water lodge complaints complaints portal  complaints portal Deliver a consistent service Number of internal quality assurance five reports produced in 2014–15 (pg. 10) across the State audits conducted Staff consider internal staff identified communication issues in communication processes are Independent Review. effective development and implementation of new staff intranet site The Grid (pg. 46) Staff consider policies and staff noted significant improvement in documentation procedures are comprehensive, up- of procedures to-date and accessible Implementation of a training and training and development meetings held monthly (pg. 52) development program for staff.

ANNUAL REPORT 2014–2015 17 Systemic issues

A systemic issue is a problem which What does EWOQ do to resolve a person has with an energy or water systemic issues? supplier that affects, or has the potential While EWOQ does not possess any enforcement or to affect, more than one customer. prosecution powers, when a systemic issue is identified, EWOQ immediately advises the scheme participant Some examples of a systemic issue include: concerned. We will then work with the scheme participant • a resident is misled by a door-to-door marketer who has to resolve the issue by providing detailed information been working in the person’s neighbourhood. It is likely about the customers concerned and the nature of the that a number of other people have also been misled by issue, and advice as to how we would like to see the issue the same marketer. resolved, including steps to be taken to avoid a recurrence • a customer identifies a billing error that may be of the problem. common to many or all of the supplier’s customer bills. EWOQ also advises the appropriate regulatory agency of • a number of customers experience delays in receiving any systemic issues that could, for example, constitute a their bills due to system errors. breach of legislation, code or licence conditions. The issue may arise from a supplier’s policy, processes or their application. It may be caused by a range of things What can result from consideration in isolation or together. For example, a system change, of systemic issues? an alteration in performance levels, a procedural change, Depending on the issue, the identification of systemic lack of policy/procedure, or the conduct of a supplier’s issues may lead to: employees or contractors. • a redesign in products and services There is often never one particular cause of a systemic issue – human error, failure to have robust audit or • changes in organisational practices and procedures verification processes, lack of adherence to procedures • retraining staff on product and service delivery or policies, inadequate billing or IT systems, poor training, • a reassessment of consumer information or unclear regulatory guidelines can all contribute to e.g. labelling unsatisfactory performance that may be systemic • a reassessment of the performance of in nature. after-sales service • an early warning about potential product and How can systemic issues be service defects. identified and/or measured? Potential systemic issues are identified in a number Systemic issues statistics of ways: Systemic issues decreased by 21 per cent this year, from • Through our frontline investigative staff, who are tasked 94 last year to 74, which is consistent with the overall with monitoring customer complaints for potential downward case trend for this year. In addition, no retailers systemic issues and identifying the complaint on undertook changes to their billing systems this year, and Resolve, our case management system. door-to-door marketing practices have ceased, both of • Advisors attached to the Policy and Research Team which have resulted in higher levels of systemic issues in (PRT) are tasked with reviewing the complaints the past. identified by investigators and taking any necessary Table 4: Systemic issues action. Our PRT also liaises closely with investigators to Issue 2011–12 2012–13 2013–14 2014–15 monitor trends in complaints. Billing 27 69 53 43 • A Systemic Issues Monitoring Committee (SIMC) Customer Service 9 22 15 17 meets regularly to identify and discuss current and Marketing 28 32 13 6 emerging systemic issues. Transfer 2 7 3 5 • Additionally, we are able to stay abreast of current and Other 5 29 6 2 emerging systemic issues through the advice of the Provision 7 1 0 1 Advisory Council, our collaborative relationships with Credit 0 4 2 0 the energy and water suppliers, government agencies, Metering 0 0 1 0 and our Ombudsman colleagues in other jurisdictions. Supply 1 1 1 0 Water 4 1 0 0 Total 83 166 94 74

18 energy+water ombudsman QUEENSLAND Systemic issues

Transfer of debt Billing delays on new water meters A number of customers told EWOQ that their retailer A water distributor-retailer issued bills to a number of had advised that when moving house they could customers accompanied by a letter advising that the transfer their debt from the old property to the new customer’s bill had been delayed by approximately one. However, the retailer subsequently reneged on the 10 months and to contact them should they require arrangement and demanded full payment of the final bill assistance in regards to payment. A customer contacted for the old property us to advise that while he had been offered a 30 day interest free extension on the delayed bill, his next Outcome: The retailer advised that they had identified regular bill was also due in one month’s time leaving an inconsistency in their training materials regarding him with 12 months of water bills to pay in a very short the transfer of debt to a current open account. While period of time. Feeling this was unreasonable, the the customer service team were advising that this was customer reported the issue to EWOQ. possible, the credit department who were responsible for collecting the final bill payment was demanding Outcome: The water distributor-retailer confirmed payment of the old account. In these instances the there was a group of 500 customers who had recently retailer agreed to transfer the debt to the new accounts. connected to the water supply infrastructure and had The retailer further advised that they proposed to align new meters installed. Due to human error, the new these policies internally and the issue had been raised water meter details were not loaded into its billing with management for approval in terms of which policy system, resulting in a delay to billing. As a result these would become the overall consistent policy. customers were offered payment plans, including interest free arrangements. The water distributor-

retailer advised that any customers who expressed financial hardship would be included in their customer care program and account managed over the next few Billing under multiple tariffs months. Additionally, refresher training was provided A customer contacted EWOQ to advise that while for the staff in the team where the human error they had a metering arrangement for three tariffs (11, occurred, and additional checks and balances have been 31 and 33), the customer was only being billed under incorporated into the relevant processes to prevent this two tariffs, with the off peak tariffs 31 and 33 being oversight from occurring in the future. combined. The customer had only recently changed to this retailer, who had confirmed that the customer would receive all three tariffs on the bill. Given the potential for this issue to impact on a number of customers, EWOQ raised this as a systemic issue. Inability to apply business tariff A bakery owner had two meters at their premise, Outcome: The retailer advised that due to a limitation both established for tariff 37 (Time-of-Use). The bakery in its billing platform, they were unable to apply both ovens were predominately used during off-peak times, off peak tariffs to any accounts that had three tariffs. however, on receiving their electricity bill, the bill Consequently, they were billing customers for their tariff seemed very high and appeared to have all consumption 31 usage at the higher tariff 33 rate. The retailer further billed to a peak tariff, rather than off-peak. On speaking advised that when they quoted customers their tariff, with the retailer, the customer was advised that they they were only quoting on the tariff 33 prices, therefore could not automatically bill on tariff 37 and a credit was notifying customers from the initial quote stage of the offered. Not satisfied that the ongoing issue of tariff prices charged and customers would have accepted the 37 billing had been addressed, the customer came to quote based on the tariff 33 offer. The retailer confirmed EWOQ for further assistance. that actions to remedy this issue had been identified and would be implemented in early 2015 as part of a Outcome: The retailer confirmed that the customer system upgrade. was on a Time-of-Use tariff, but advised that due to its systems, was unable to bill under this tariff. The retailer offered the customer a discount to reflect the difference in the bill they would have received under tariff 37. The retailer confirmed that for those customers with tariff 37 metering, it would apply a visible percentage discount to the bills to compensate for the overcharge. Additionally, it would offer the customers the option of changing to a retailer who was able to bill under tariff 37.

ANNUAL REPORT 2014–2015 19 Contributing to public policy

EWOQ is regularly consulted on policy and legislative reviews being conducted by government, not for profit organisations and other bodies. We are able to draw on our experiences with both customers and suppliers and provide feedback and comments on contemporary policy issues.

In 2014–15, we participated in the following: Meetings Australian Energy Market Commission • Participated in and addressed the Minister’s Consumer • Provided input into the 2015 retail competition review and Industry Reference Group meetings. • Attended a workshop concerning competition in • Attended water forums hosted by Unity Water, Logan metering. City Council and Queensland Urban Utilities. Submissions • Hosted two energy forums for all Queensland energy retailers and distributors to interact with one another • To the Department of Energy and Water Supply and actively participate in forum discussions. concerning the draft South East Queensland Water and Wastewater Code. Department of Energy and Water Supply • To the Department of Energy and Water Supply • Discussed potential changes to EWOQ’s jurisdiction. concerning the Consultation Regulatory Impact • Discussed the application of the tariff equalisation Statement on the expansion of Energy and Water policy for Queensland customers serviced by New Ombudsman access arrangements. South Wales distributor Essential Energy. • To the Department of Energy and Water Supply on the • Provided feedback and comments to the working group entry of private Independent water utilities into the reviewing the Water and Sewerage Code for Small Queensland water sector. Customers in South East Queensland. • To the Australian Energy Market Commission on Retailer insolvency cost pass through provisions.

20 energy+water ombudsman QUEENSLAND The figures and the issues

Billing complaints fell 26 per cent this year, reaching a five year low. Credit complaints also decreased significantly, down 18 per cent from 2,598 last year to 2,118 this year. Customer service complaints increased by eight per cent primarily due to the Sanctuary Energy issues we handled this year.

Transfer, Provision, Supply and Marketing complaints reached five year lows this year. Transfer complaints declined by 53 per cent, followed by Marketing complaints, down 45 per cent on last year.

Table 5: Closed complaints by primary issue 2010–11 2011–12 2012–13 2013–14 2014–15 Billing 5,100 5,868 6,299 5,556 4,137 Credit 1,004 1,302 1,440 2,598 2,118 Customer service 1,332 1,606 829 969 1,047 Provision 500 554 426 478 365 Transfer 1,010 878 980 767 357 Other 297 469 217 141 112 Supply 269 113 112 135 106 Land 52 56 32 72 59 Marketing 646 259 170 91 50

ANNUAL REPORT 2014–2015 21 Electricity

There were 7,550 electricity complaints closed this year, 30 land a decrease of 2,456 on last year. Of these, 45 per cent 86 supply were referred back to scheme participants as the issue had 302 provision not been raised before with them; and 35 per cent were referred to a higher level with the scheme participant to be dealt with. The balance (20 per cent) were investigated by EWOQ. Nearly half (49 per cent) of all electricity complaints related to billing issues.

Table 6: Closed electricity complaints by primary issue and case type Refer to Primary issue Refer Back Higher Level Investigation Total Billing 1,782 1,240 675 3,697 Credit 74 7 799 450 1,996 Customer Service 376 352 232 960 Transfer 140 128 69 337 Provision 194 70 38 302 Other 93 0 0 93 Supply 64 9 13 86 Marketing 18 23 8 49 Land 17 8 5 30 Grand Total 3,431 2,629 1,490 7,550

With one exception, all complaint categories were down While most billing issues decreased significantly, this year; billing by 27 per cent and credit complaints by backbilling issues increased by 22 per cent because 19 per cent. of meter issues with one retailer (see systemic issues pg. 18). The exception was customer service complaints which increased by six per cent this year, up from 909 to 960, Credit investigations also fell significantly (33 per cent), primarily as a result of complaints concerning Sanctuary however payment difficulty issues remained flat with Energy’s failure to pay solar bonus refunds. 86 investigations last year and 85 this year. These investigations increased by 260 per cent this year, Pleasingly, transfer issues decreased 63 per cent, as from 55 last year to 198 this year. well as provision issues with a 56 per cent decrease.

22 energy+water ombudsman QUEENSLAND Electricity

30 land 49 marketing 86 supply 93 other 302 provision 337 transfer

960 customer service

1,996 credit

Credit complaints followed by accounted for 26% of customer service with electricity complaints, 13% of complaints

3,697 billing

“ I just want to convey my sincere thanks for your efforts and outstanding result in what has been a difficult situation. It wasn’t until you got involved that things changed and the facts were uncovered. Many thanks on a job well done.” [Customer] ’10–’11 ’11–’12 ’12–’13 ’13–’14 ’14–’15 Number of credit complaints See Table 6 (page 22) for figures.

ANNUAL REPORT 2014–2015 23 Electricity

Table 7: Electricity investigations by primary and secondary issues Primary issue Secondary issue 2010–11 2011–12 2012–13 2013–14 2014–15 The Billing High 419 377 322 307 141 Error 183 228 181 256 137 investigation Other 102 93 87 104 76 of customer Backbill 57 49 56 59 72 service Estimation 64 68 49 56 60 Delay 70 109 169 108 55 complaints Meter 58 49 40 48 45 increased Tariff 25 54 83 68 32 significantly (up Refund 22 23 16 40 18 Rebate/concession 30 18 29 33 18 100 per cent), Fees & charges 64 25 25 18 12 because we Re-Bill - - - 10 9 did not offer Total 1,094 1,093 1,057 1,107 675 the refer to Credit Collection 146 137 160 260 189 Disconnection/restriction 115 121 139 328 176 higher level Payment difficulties 46 55 43 86 85 option for Total 307 313 342 674 450 Sanctuary Transfer Without consent 57 38 47 53 24 Energy In error 55 43 25 32 15 Delay 13 26 31 43 13 customers. Objection/rejected by retailer 2 9 10 14 4 Site ownership 9 26 15 16 4 Billing 7 16 15 9 3 Contract terms 25 14 9 6 3 Cooling off rights 17 22 19 13 3 Total 185 194 171 186 69 Provision Existing connection 20 18 17 40 22 Disconnection/restriction 67 105 29 24 12 New connection 32 23 23 22 4 Total 119 146 69 86 38 Customer service Refund - - - 55 198 Incorrect advice or information 24 23 8 13 12 Poor service 33 32 5 12 8 Failure to respond 27 41 19 18 5 Failure to consult or Inform 15 11 5 13 5 Poor/unprofessional attitude 5 1 1 4 4 Privacy 1 2 2 1 0 Total 105 110 40 116 232 Supply Variation 4 3 8 11 6 Off supply (unplanned) 9 6 1 8 5 Off supply (planned) 1 3 2 2 2 Sustainability initiatives 1 0 0 0 0 Quality 1 1 5 0 0 Total 16 13 16 21 13 Marketing Misleading 25 22 7 4 4 Contract - - - 2 2 Other 14 2 4 2 1 Information 4 1 0 0 1 Non account holder 2 0 2 0 0 Pressure/coercion 2 1 1 0 0 Total 47 26 14 8 8 Land Other 7 2 0 2 3 Wayleave Agreement - - - - 1 Network assets 6 3 1 2 1 Vegetation management 4 3 2 0 0 Total 17 8 3 4 5 Grand total 1,890 1,903 1,712 2,202 1,490

24 energy+water ombudsman QUEENSLAND Electricity

Solar credits not refunded Customer’s account The customer had a solar system installed on his transferred in error property and was generating enough electricity to feed The customer received a ‘final bill’ from her retailer, and back in to the grid and accrue solar credits. Expecting thinking that it meant she needed to pay immediately, to receive a refund for his solar credits each quarter, the paid the account. Five months passed without another customer contacted his retailer when he didn’t receive bill, so the customer contacted her retailer only to be a refund in July 2013, following an earlier refund in told that her account had been transferred to another April 2013. On contacting his retailer he was told that retailer. Concerned that she had not authorised the the refund would take 8-10 weeks to issue, however transfer, she contacted the new retailer who advised after waiting this length of time the refund was still that they would investigate and get back to her. Later not received. The customer continued to follow up she received a bill addressed to ‘Dear Customer’ for with the retailer and on each occasion was advised $472. The customer contacted the new retailer on many there were administration issues causing a delay. This more occasions to resolve the issue, but her complaint continued on until January 2015 when, frustrated with remained unresolved. She then received a notice that the lack of progress, the customer contacted EWOQ for the account was on hold, a final bill for $690, and a assistance. disconnection notice. Not surprisingly, the customer contacted EWOQ for help. Outcome: On investigation, EWOQ confirmed that the customer had not received any refund since April 2013, Outcome: On investigation, it was found that the new despite the customer’s best endeavours to receive retailer had incorrectly transferred the customer’s the refunds owing. Following repeated requests from account, instead of the neighbour’s property. When EWOQ for the credits to be refunded, the retailer this was realised, the retailer set up an account for the agreed to pay the customer $4,143.91 owed under the customer’s property as a ‘Dear Customer’ account and Queensland Government Solar Bonus Scheme. After issued the first $472 bill. As a resolution the new retailer reviewing the conditions of the customer’s contract, offered the customer a goodwill gesture of a 50 per the retailer agreed to refund $100 of the retailer’s solar cent reduction on the amounts owing, leaving $349.19 scheme credits, with the balance to remain in credit for the customer to pay. The retailer also arranged for against the customer’s account until the end of the the customer’s account to be transferred back to her preferred retailer. contract period.

Misinformation given to a customer Poor service results in big debt Under a payment plan the customer agreed to pay After receiving emails from her retailer about alternative $100 per fortnight towards his electricity account. The solar electricity plans, the customer contacted the terms and conditions of the payment plan allowed the retailer to discuss her options. She chose a new plan electricity retailer to adjust the fortnightly repayments but only after receiving an assurance from her retailer in line with the customer’s electricity consumption. that she would continue to be billed quarterly. After The customer found that an adjustment had been receiving a bill only one month later, the customer made to his automatic payments and he became contacted her retailer to ask why she was receiving worried that they would not meet his consumption, bills monthly and was told that she had been incorrectly resulting in a large bill. The customer contacted his advised about the frequency of the bill. The retailer retailer who assured him that the repayments would apologised but said they could not change her billing even out over 12 months. In the next following quarter, to quarterly. Not satisfied with this, the customer fortnightly payments were increased by the retailer contacted EWOQ. because payments had not kept pace with his levels of Outcome: EWOQ listened to recordings of phone consumption and a debt had grown. Unable to afford conversations between the customer and the retailer this increase, the customer contacted EWOQ. which confirmed the customer had been told that billing Outcome: On investigation, EWOQ was told that would be quarterly even if she changed plans. The the $100 payments had been too high and had been retailer advised EWOQ that they did not have a solar automatically adjusted to ensure a large credit did not plan available with quarterly billing and could not honour accrue on his account. However the next review of the commitment that had been given. The retailer the customer’s repayments did not occur until he was apologised to the customer and offered a $50 goodwill significantly in arrears. The retailer acknowledged that gesture which the customer accepted. The customer the customer had attempted to increase his payments advised she would review the plans on offer and contact throughout this time. The retailer provided a $150 the retailer if she wished to change. good will gesture for the poor customer service and the inconvenience caused to the customer, and a 12 month repayment plan at $40 per fortnight to pay off the balance of $799.

ANNUAL REPORT 2014–2015 25 Electricity

Electricity retailers Electricity retailer Table 8: Closed electricity retailer complaints by primary issue complaints Primary issue Scheme participant 2010–11 2011–12 2012–13 2013–14 2014–15 Billing Origin Energy Electricity Ltd 2,403 3,115 3,283 2,257 1,365 decreased by AGL Sales (Queensland 1,087 672 673 709 781 25 per cent this Electricity) Pty Ltd EnergyAustralia Pty Ltd 1 - - 611 856 447 year, down to Ergon Energy Qld Pty Ltd 208 192 246 373 356 7,184 from 9,598 Click Energy Pty Ltd 16 46 148 255 261 last year. Powerdirect Pty Ltd 53 46 90 127 163 Lumo Energy 353 265 252 153 147 QEnergy Pty Ltd 0 10 41 36 68 Dodo Power & Gas Pty Ltd - 2 10 32 47 Sanctuary Energy Pty Ltd 1 6 25 126 36 Simply Energy - - 0 16 12 Australian Power and Gas Pty Ltd 2 62 126 139 130 6 Diamond Energy Pty Ltd - - 1 4 2 Momentum Energy Pty Ltd 0 0 0 1 0 TRUenergy Pty Ltd1 211 521 197 - - Total 4,394 5,001 5,716 5,075 3,691 Credit Origin Energy Electricity Ltd 498 675 756 1,056 1,019 AGL Sales (Queensland 284 270 293 516 377 Electricity) Pty Ltd Ergon Energy Qld Pty Ltd 84 47 60 399 254 EnergyAustralia Pty Ltd 1 - - 60 218 154 Click Energy Pty Ltd 0 5 8 87 82 Lumo Energy 37 40 30 26 53 Powerdirect Pty Ltd 2 6 24 29 30 Australian Power and Gas Pty Ltd 2 1 23 53 109 13 QEnergy Pty Ltd 0 2 11 15 6 Dodo Power & Gas Pty Ltd - - 0 1 3 Simply Energy 0 0 0 0 2 Sanctuary Energy Pty Ltd 0 0 3 7 2 Momentum Energy Pty Ltd 0 0 0 0 1 TRUenergy Pty Ltd 1 32 110 36 - - Total 938 1,178 1,334 2,463 1,996 Transfer EnergyAustralia Pty Ltd 1 - - 229 209 91 Origin Energy Electricity Ltd 237 228 249 205 78 AGL Sales (Queensland 181 126 115 102 57 Electricity) Pty Ltd Click Energy Pty Ltd 8 10 34 70 38 Powerdirect Pty Ltd 24 7 10 69 34 Lumo Energy 258 143 54 32 16 Dodo Power & Gas Pty Ltd - 2 6 9 8 Sanctuary Energy Pty Ltd 0 1 11 5 6 QEnergy Pty Ltd 1 6 10 6 4 Simply Energy - - 1 14 2 Ergon Energy Qld Pty Ltd 6 0 0 5 2 Australian Power and Gas Pty Ltd 2 52 46 38 20 1 TRUenergy Pty Ltd 1 192 268 183 - - Total 959 837 940 746 337

1 TRUenergy was renamed as EnergyAustralia on 1 December 2012 2 From May 2014 Australian Power and Gas customers were migrated to AGL * Due to changes in the categorisation of issues this data is captured elsewhere

26 energy+water ombudsman QUEENSLAND Electricity

Table 8: Closed electricity retailer complaints by primary issue (continued) Primary issue Scheme participant 2010–11 2011–12 2012–13 2013–14 2014–15 Customer Service Origin Energy Electricity Ltd 494 74 2 304 324 258 Billing Sanctuary Energy Pty Ltd 2 6 14 137 226 AGL Sales (Queensland 247 160 103 102 152 complaints Electricity) Pty Ltd decreased by EnergyAustralia Pty Ltd 1 - - 94 114 103 Ergon Energy Qld Pty Ltd 69 55 32 37 39 27 per cent Click Energy Pty Ltd 3 7 18 50 36 even though Lumo Energy 126 55 23 22 34 some retailers – Powerdirect Pty Ltd 12 15 13 16 10 QEnergy Pty Ltd 0 1 2 10 10 QEnergy, Dodo Dodo Power & Gas Pty Ltd - 0 1 6 6 Power & Gas, Australian Power and Gas Pty Ltd 2 15 34 15 21 1 Powerdirect Simply Energy 0 0 0 0 1 TRUenergy Pty Ltd 1 71 130 38 - - and AGL – Total 1,039 1,205 657 839 876 experienced Provision Origin Energy Electricity Ltd 157 192 111 127 77 a modest AGL Sales (Queensland 86 49 42 37 40 Electricity) Pty Ltd rise in billing EnergyAustralia Pty Ltd 1 - - 22 52 25 complaints. Ergon Energy Qld Pty Ltd 22 35 27 43 18 Lumo Energy 11 16 5 9 10 Click Energy Pty Ltd 3 0 6 15 6 Powerdirect Pty Ltd 4 2 2 4 3 Dodo Power & Gas Pty Ltd - 0 1 1 1 Momentum Energy Pty Ltd 1 1 0 0 1 Sanctuary Energy Pty Ltd 0 0 0 0 1 QEnergy Pty Ltd 0 0 3 4 1 Australian Power and Gas Pty Ltd 2 8 14 10 9 0 Sanctuary Energy Pty Ltd 2 0 3 2 0 Simply Energy - - 1 4 0 TRUenergy Pty Ltd 1 26 36 21 - - Total 320 345 254 307 183 Marketing AGL Sales (Queensland 114 49 26 14 14 Electricity) Pty Ltd EnergyAustralia Pty Ltd 1 - - 37 23 11 Origin Energy Electricity Ltd 187 46 57 26 9 Click Energy Pty Ltd 3 0 6 9 7 Powerdirect Pty Ltd 3 0 0 4 3 Lumo Energy 140 25 4 6 3 Dodo Power & Gas Pty Ltd - 0 0 1 2 Sanctuary Energy Pty Ltd 0 6 1 0 0 Ergon Energy Qld Pty Ltd 0 0 1 0 0 Simply Energy - - 0 1 0 QEnergy Pty Ltd 0 1 1 2 0 Australian Power and Gas Pty Ltd 2 48 41 4 3 0 TRUenergy Pty Ltd 1 141 84 32 - - Total 636 252 169 89 49

1 TRUenergy was renamed as EnergyAustralia on 1 December 2012 2 From May 2014 Australian Power and Gas customers were migrated to AGL * Due to changes in the categorisation of issues this data is captured elsewhere

ANNUAL REPORT 2014–2015 27 Electricity

Table 8: Closed electricity retailer complaints by primary issue (continued) Primary issue Scheme participant 2010–11 2011–12 2012–13 2013–14 2014–15 Other Origin Energy Electricity Ltd 85 144 53 31 22 Ergon Energy Qld Pty Ltd 19 26 25 17 10 AGL Sales (Queensland 31 44 23 15 7 Electricity) Pty Ltd EnergyAustralia Pty Ltd 1 - - 10 6 6 Dodo Power & Gas Pty Ltd - 0 0 0 2 QEnergy Pty Ltd 0 1 2 0 2 Lumo Energy 9 16 9 3 2 Click Energy Pty Ltd 1 1 2 4 1 Australian Power and Gas Pty Ltd 2 7 12 2 1 0 Powerdirect Pty Ltd 0 7 2 1 0 Sanctuary Energy Pty Ltd 0 1 2 1 0 TRUenergy Pty Ltd 1 8 27 4 - - Total 160 279 134 79 52 Supply* Origin Energy Electricity Ltd 52 - - - - AGL Sales (Queensland 24 - - - - Electricity) Pty Ltd Ergon Energy Qld Pty Ltd 19 - - - - Lumo Energy 9 - - - - TRUenergy Pty Ltd 5 - - - - Powerdirect Pty Ltd 3 - - - - QEnergy Pty Ltd 1 - - - - Total 113 - - - - Grand Total 8,559 9,097 9,204 9,598 7,184

1 TRUenergy was renamed as EnergyAustralia on 1 December 2012 2 From May 2014 Australian Power and Gas customers were migrated to AGL * Due to changes in the categorisation of issues this data is captured elsewhere

Table 9: Closed electricity complaints by retailer Scheme participant Primary issue 2010–11 2011–12 2012–13 2013–14 2014–15 Origin Energy Electricity Ltd Billing 2,403 3,115 3,283 2,257 1,365 Credit 498 675 756 1,056 1,019 Customer service 494 74 2 304 324 258 Marketing 187 46 57 26 9 Other 85 144 53 31 22 Provision 157 192 111 127 77 Supply* 52 - - - - Transfer 237 228 249 205 78 Total 4,113 5,142 4,813 4,026 2,828 AGL Sales (Queensland Billing 1,087 672 673 709 781 Electricity) Pty Ltd Credit 284 270 293 516 377 Customer service 247 160 103 102 152 Marketing 114 49 26 14 14 Other 31 44 23 15 7 Provision 86 49 42 37 40 Supply* 24 - - - - Transfer 181 126 115 102 57 Total 2,054 1,370 1,275 1,495 1,428

1 TRUenergy was renamed as EnergyAustralia on 1 December 2012 2 From May 2014 Australian Power and Gas customers were migrated to AGL * Due to changes in the categorisation of issues this data is captured elsewhere

28 energy+water ombudsman QUEENSLAND Electricity

Table 9: Closed electricity complaints by retailer (continued) Scheme participant Primary issue 2010–11 2011–12 2012–13 2013–14 2014–15 EnergyAustralia Pty Ltd 1 Billing - - 611 856 447 Credit - - 60 218 154 Customer service - - 94 114 103 Marketing - - 37 23 11 Other - - 10 6 6 Provision - - 22 52 25 Transfer - - 229 209 91 Total - - 1,063 1,478 837 TRUenergy Pty Ltd 1 Billing 211 521 197 - - Credit 32 110 36 - - Customer service 71 130 38 - - Marketing 141 84 32 - - Other 8 27 4 - - Provision 26 36 21 - - Supply* 5 - - - - Transfer 192 268 183 - - Total 686 1,176 511 - - Ergon Energy Qld Pty Ltd Billing 208 192 246 373 356 Credit 84 47 60 399 254 Customer service 69 55 32 37 39 Marketing 0 0 1 0 0 Other 19 26 25 17 10 Provision 22 35 27 43 18 Supply* 19 - - - - Transfer 6 0 0 5 2 Total 427 355 391 874 679 Lumo Energy Billing 353 265 252 153 147 Credit 37 40 30 26 53 Customer service 126 55 23 22 34 Marketing 140 25 4 6 3 Other 9 16 9 3 2 Provision 11 16 5 9 10 Supply* 9 - - - - Transfer 258 143 54 32 16 Total 943 560 377 251 265 Australian Power Billing 62 126 139 130 6 2 and Gas Pty Ltd Credit 1 23 53 109 13 Customer service 15 34 15 21 1 Marketing 48 41 4 3 0 Other 7 12 2 1 0 Provision 8 14 10 9 0 Transfer 52 46 38 20 1 Total 193 296 261 293 21 Click Energy Pty Ltd Billing 16 46 148 255 261 Credit 0 5 8 87 82 Customer service 3 7 18 50 36 Marketing 3 0 6 9 7 Other 1 1 2 4 1 Provision 3 0 6 15 6 Transfer 8 10 34 70 38 Total 34 69 222 490 431

1 TRUenergy was renamed as EnergyAustralia on 1 December 2012 2 From May 2014 Australian Power and Gas customers were migrated to AGL * Due to changes in the categorisation of issues this data is captured elsewhere

ANNUAL REPORT 2014–2015 29 Electricity

Table 9: Closed electricity complaints by retailer (continued) Scheme participant Primary issue 2010–11 2011–12 2012–13 2013–14 2014–15 Powerdirect Pty Ltd Billing 53 46 90 127 163 Credit 2 6 24 29 30 Customer service 12 15 13 16 10 Marketing 3 0 0 4 3 Other 0 7 2 1 0 Provision 4 2 2 4 3 Supply* 3 - - - - Transfer 24 7 10 69 34 Total 101 83 141 250 243 QEnergy Pty Ltd Billing 0 10 41 36 68 Credit 0 2 11 15 6 Customer service 0 1 2 10 10 Marketing 0 1 1 2 0 Other 0 1 2 0 2 Provision 0 0 3 4 1 Supply* 1 - - - - Transfer 1 6 10 6 4 Total 2 21 70 73 91 Sanctuary Energy Pty Ltd Billing 1 6 25 126 36 Credit 0 0 3 7 2 Customer service 2 6 14 137 226 Marketing 0 6 1 0 0 Other 0 1 2 1 0 Provision 2 0 3 2 1 Transfer 0 1 11 5 6 Total 5 20 59 278 271 Dodo Power & Gas Pty Ltd Billing - 2 10 32 47 Credit - 0 0 1 3 Customer service - 0 1 6 6 Marketing - 0 0 1 2 Other - 0 0 0 2 Provision - 0 1 1 1 Transfer - 2 6 9 8 Total - 4 18 50 69 Simply Energy Billing - - 0 16 12 Credit - - 0 0 2 Customer Service - - 0 0 1 Marketing - - 0 1 0 Provision - - 1 4 0 Transfer - - 1 14 2 Total - - 2 35 17 Diamond Energy Pty Ltd Billing 0 0 1 4 2 Total 0 0 1 4 2 Momentum Energy Pty Ltd Billing 0 0 0 1 0 Credit 0 0 0 0 1 Provision 1 1 0 0 1 Total 1 1 0 1 2 Grand total 8,559 9,097 9,204 9,598 7,184

1 TRUenergy was renamed as EnergyAustralia on 1 December 2012 2 From May 2014 Australian Power and Gas customers were migrated to AGL * Due to changes in the categorisation of issues this data is captured elsewhere

30 energy+water ombudsman QUEENSLAND Electricity

Electricity retailer performance In an effort to benchmark performance we calculated an average complaint-to-customer ratio across all retailers in each tier. Once the benchmark was established deviation from the average was calculated as a percentage. Those retailers with scores above the benchmark line reported a better than average complaint-to-customer ratio.

Figure 5: Electricity retailer performance

First Tier Second Tier1

108% 97% 25% 5% 4% -1%

-38%

-51% -57%

-92%

Ergon Energy AGL Sales EnergyAustralia Click Energy Dodo Power & Qld Pty Ltd (Queensland Pty Ltd Pty Ltd Gas Pty Ltd Origin Electricity) Lumo Energy Powerdirect QEnergy Ltd Sanctuary Energy Pty Ltd Pty Ltd Energy Pty Ltd Electricity Ltd

First tier benchmark Second tier benchmark

1 Second tier retailers are those who entered the market following the introduction of full retail competition. * Companies who received less than 20 complaints have not been included in the graphs. * Customer numbers as at 31 March 2015.

Compensation sought for loss of livestock Cattle belonging to the customer died when they came into contact with a sagging power line. The customer claimed that the distributor’s linesmen told him that the line was sagging due to rusted connectors. His claim for compensation having been denied by the distributor he came to EWOQ for help. Outcome: On being contacted by EWOQ, the distributor agreed to compensate the customer for his loss, but without admitting liability. The customer received $3,000 in compensation.

ANNUAL REPORT 2014–2015 31 Electricity distributors Table 10: Closed electricity distributor complaints by primary issue Electricity Primary issue Scheme participant 2010–11 2011–12 2012–13 2013–14 2014–15 distributor Provision ENERGEX Ltd 78 88 78 77 60 Ergon Energy Corporation Ltd 35 41 44 45 54 complaints Essential Energy 2 1 1 1 5 decreased by Total 115 130 123 123 119 10 per cent Customer service ENERGEX Ltd 129 151 90 45 52 Ergon Energy Corporation Ltd 31 38 21 25 29 this year, down Essential Energy 0 0 0 0 3 from 408 to Total 160 189 111 70 84 366. Supply Ergon Energy Corporation Ltd 38 25 27 57 43 ENERGEX Ltd 77 61 67 60 42 Essential Energy 0 1 1 2 1 Total 115 87 95 119 86 Other ENERGEX Ltd 40 55 44 24 26 Customer Ergon Energy Corporation Ltd 3 11 7 11 14 service Essential Energy 0 0 1 1 1 Total 43 66 52 36 41 complaints Land ENERGEX Ltd 23 21 17 38 17 increased by Ergon Energy Corporation Ltd 27 16 8 18 13 20 percent, Total 50 37 25 56 30 with both Billing Ergon Energy Corporation Ltd 3 0 0 2 6 ENERGEX Ltd 6 0 0 2 0 Energex Total 9 0 0 4 6 and Ergon Grand Total 492 509 406 408 366

experiencing Table 11: Closed electricity complaints by distributor a 16 per cent Scheme participant Primary issue 2010–11 2011–12 2012–13 2013–14 2014–15 increase, albeit ENERGEX Ltd Provision 78 88 78 77 60 from a small Customer service 129 151 90 45 52 Supply 77 61 67 60 42 complaints Other 40 55 44 24 26 base. Land 23 21 17 38 17 Billing 6 0 0 2 0 Total 353 376 296 246 197 Ergon Energy Corporation Ltd Provision 35 41 44 45 54 Supply 38 25 27 57 43 Customer service 31 38 21 25 29 Other 3 11 7 11 14 Land 27 16 8 18 13 Billing 3 0 0 2 6 Total 137 131 107 158 159 Essential Energy Provision 2 1 1 1 5 Customer Service 0 0 0 0 3 Supply 0 1 1 2 1 Other 0 0 1 1 1 Total 2 2 3 4 10 Grand Total 492 509 406 408 366

32 energy+water ombudsman QUEENSLAND Our customers and their issues

Investigation clears the distributor Full solar feed-in tariff restored of any fault The customer had a solar system installed and was The customer, a farmer, claimed that the voltage receiving the $0.44 per kW Queensland Solar Bonus supplied to his property varied so much that it caused Scheme feed-in tariff. After deciding to upgrade his his irrigation pump to stop. Discussions with his system, the customer sent off the required paperwork distributor had failed to resolve the issue. The customer to his retailer to ensure that he retained his feed-in claimed that the distributor had conducted tests on his tariff. Two years later, the customer received a copy of power supply but he did know the results. Seeking a his bill and found that his solar feed-in tariff had been timely resolution, the customer contacted EWOQ. reduced to $0.08. On questioning this with his retailer, he was advised that the paperwork for his upgrade had Outcome: As a result of the EWOQ investigation, not been received and he was no longer eligible for voltage recorders were installed at the service pole the higher feed-in tariff. The customer supplied copies which found that the voltage entering the property of his paperwork to the distributor, but these were not was within the required range. However, during the accepted as they were not dated for the period when investigation, EWOQ noted that no complaint had been the system upgrade occurred. Dissatisfied with the made by the customer until after he had completed outcome, the customer contacted EWOQ. some work on the pump. The customer was advised by EWOQ to have an electrical contractor check all of Outcome: On investigation, the distributor advised that his connections. In addition, the distributor offered to if the customer could provide copies of the paperwork further discuss other options to assist the customer. with proof of the date on which they were submitted the $0.44 feed-in tariff would be restored. The customer obtained a fax transmission report from his solar installer showing the date on which the paperwork had been submitted and the distributor accepted this report Customer disadvantaged by as evidence of the documentation being submitted on distributor’s inaction time. The customer’s eligibility for the $0.44 feed-in tariff was restored and the difference between the $0.08 he The customer, who had a 5 kW solar photovoltaic (PV) had been paid, and the $0.44 feed-in tariff to which he system on his property, noticed that the inverter would was entitled, was credited to his account. regularly shut down and not export any surplus power to the grid. This resulted in him not receiving the solar feed-in tariff bonus for the period the inverter was out of action. The customer spoke with the distributor who advised that although his system was functioning Power supply not to blame correctly, other PV systems in the neighbourhood were The customer, a business owner, claimed that his exporting too much power into the grid and prevented electrical goods failed due to a surge in power and his system from doing so. The customer was told that was seeking compensation from the distributor to it could take up to six months to rectify the issue. The cover the electrician’s call out fee. The customer had customer sought our assistance. followed the electricity distributor’s compensation and Outcome: During the EWOQ investigation, the appeals process and his claim was refused after tests distributor found a number of non-compliant solar PV found that there was no fault with the voltage supply. systems in the vicinity of the customer’s premises. The customer was not satisfied with this decision as These systems were shut down and the owners told to he claimed the distributor had informed him that there have them rectified before they could feed power into were problems with the initial tests. the grid. Testing was carried out on the customer’s three Outcome: As part of the investigation, EWOQ asked phase power and the local network was configured the distributor to undertake further power quality supply to balance the solar load. In addition, a faulty voltage tests which confirmed that the electricity entering the regulator was discovered and replaced. By the end of customer’s property was within the acceptable range. the distributor’s works, the customer was able to export However, the data provided indicated there was a power to the grid. voltage drop when an appliance that drew substantial power was turned on at the property, indicating an issue with the customer’s surge protection switches. The customer was advised to consult with an electrician to ensure the problem did not occur again.

ANNUAL REPORT 2014–2015 33 Gas

This year we closed 431 gas complaints, a 1 marketing five per cent decrease on 2013–14. Billing issues 4 other accounted for 52 per cent of all gas complaints, 20 transfer followed by credit with 21 per cent (Table 13).

Table 12: Closed gas complaints by primary issue and case type Refer to Primary issue Refer Back Higher Level Investigation Total 43 customer service Billing 95 94 36 225 Credit 35 29 26 90 Customer Service 22 15 6 43 Provision 23 14 4 41 Transfer 3 9 8 20 Supply 5 0 0 5 Other 4 0 0 4 Land 2 0 0 2 Marketing 0 1 0 1 Grand Total 189 162 80 431

Unexplained charges for gas services Routine work was undertaken by the gas distributor at a three-unit residential complex. At some point a gas leak was identified and gas at the customer’s property was disconnected. A gas fitter was contracted to identify the source of the leak, however no leak was detected and the gas supply was restored to the customer’s property. The following week, the customer received an invoice in the mail for $94 relating to the services provided by the gas fitter. The customer contacted his gas retailer to enquire about the charges, however, an explanation could not be provided. Outcome: On investigation, the distributor acknowledged that during the routine meter change a suspected gas leak was found. The gas supply to the customer’s property was disconnected as a precaution until a gas fitter could attend. The customer had been advised by the distributor’s representative that he would be billed if any work was undertaken on his property by the gas fitter. The gas fitter failed to find any leak however, in the process, the customer’s pilot light was extinguished. The gas fitter assisted the customer to relight the pilot, which involved the removal of wooden panelling around the hot water system and the invoice concerned this service. As a result of EWOQ’s investigation, the gas fitter agreed to waive the invoice for $94.

34 energy+water ombudsman QUEENSLAND Gas

1 marketing 2 land 4 other 5 supply 20 transfer 41 provision

43 customer service

90 credit

Billing issues account gas complaints, and for more than half credit issues account (52%) of all for 21%

225 billing

“ Thanks very much for your help. It has been greatly appreciated. You kept me informed all through the process. Please pass on my gratitude.” [Customer]

’10–’11 ’11–’12 ’12–’13 ’13–’14 ’14–’15 Number of billing complaints See Table 13 (page 36) for figures.

ANNUAL REPORT 2014–2015 35 Gas

Gas retailers Table 13: Closed gas retailer complaints by primary issue Primary issue Scheme participant 2010–11 2011–12 2012–13 2013–14 2014–15 Billing Origin Energy Retail Ltd 144 287 172 139 116 Overall, AGL Sales (Queensland) Pty Ltd 238 115 79 83 107 gas retailer Maranoa Regional Council 1 0 2 0 1 complaints Western Downs Regional Council 0 1 2 0 1 Australian Power and Gas Pty Ltd1 1 9 8 12 0 decreased Total 384 412 263 234 225 five per cent Credit Origin Energy Retail Ltd 36 66 42 63 50 compared to AGL Sales (Queensland) Pty Ltd 24 33 29 43 39 last year (from Australian Power and Gas Pty Ltd1 1 0 4 6 0 Western Downs Regional Council 0 0 0 0 1 434 to 414). Total 61 99 75 112 90 Transfer Origin Energy Retail Ltd 13 18 20 11 12 AGL Sales (Queensland) Pty Ltd 34 19 15 7 8 Australian Power and Gas Pty Ltd1 4 4 5 3 0 Total 51 41 40 21 20 Customer service AGL Sales (Queensland) Pty Ltd 35 31 9 11 20 Origin Energy Retail Ltd 30 62 19 14 18 Australian Power and Gas Pty Ltd1 0 1 1 5 1 Total 65 94 29 30 39 Provision AGL Sales (Queensland) Pty Ltd 23 18 18 7 22 Origin Energy Retail Ltd 26 39 11 19 15 Western Downs Regional Council 0 0 0 0 1 Australian Power and Gas Pty Ltd1 0 1 0 2 0 Total 49 58 29 28 38 Other AGL Sales (Queensland) Pty Ltd 2 2 2 1 1 Australian Power and Gas Pty Ltd1 0 1 0 0 0 Origin Energy Retail Ltd 8 16 3 6 0 Total 10 19 5 7 1 Marketing AGL Sales (Queensland) Pty Ltd 7 4 1 2 1 Australian Power and Gas Pty Ltd1 1 0 0 0 0 Origin Energy Retail Ltd 2 3 0 0 0 Total 10 7 1 2 1 Supply* AGL Sales (Queensland) Pty Ltd 5 - - - - Origin Energy Retail Ltd 16 - - - -

Total 21 - - - - Grand total 651 730 442 434 414

1 From May 2014 Australian Power and Gas customers were migrated to AGL * Due to changes in the categorisation of issues this data is captured elsewhere

36 energy+water ombudsman QUEENSLAND Gas

Table 14: Closed gas complaints by retailer Scheme participant Primary issue 2010–11 2011–12 2012–13 2013–14 2014–15 Origin Energy Retail Ltd Billing 144 287 172 139 116 Credit 36 66 42 63 50 Provision 26 39 11 19 22 Customer service Customer service 30 62 19 14 18 Transfer 13 18 20 11 12 complaints Marketing 2 3 0 0 0 also increased Other 8 16 3 6 0 this year (up Supply* 16 0 0 0 0 Total 275 491 267 252 218 30 per cent). AGL Sales (Queensland) Billing 238 115 79 83 107 Pty Ltd Credit 24 33 29 43 39 Customer service 35 31 9 11 20 Provision 23 18 18 7 15 Transfer 34 19 15 7 8 Marketing 7 4 1 2 1 Other 2 2 2 1 1 Supply* 5 0 0 0 0 Total 368 222 153 154 191 Australian Power Customer service 0 1 1 5 1 1 and Gas Pty Ltd Billing 1 9 8 12 0 Credit 1 0 4 6 0 Transfer 4 4 5 3 0 Provision 0 1 0 2 0 Other 0 1 0 0 0 Marketing 1 0 0 0 0 Total 7 16 18 28 1 Maranoa Regional Council Billing 1 0 2 0 1 Total 1 0 2 0 1 Western Downs Billing 0 1 2 0 1 Regional Council Credit 0 0 0 0 1 Provision 0 0 0 0 1 Total 0 1 2 0 3 Grand Total 651 730 442 434 414

1 From May 2014 Australian Power and Gas customers were migrated to AGL * Due to changes in the categorisation of issues this data is captured elsewhere

Customer not told about natural gas hot water system The customer was a tenant in the property for over 18 months and was unaware that there was a natural gas hot-water system in operation. One day, the customer received a ‘Dear Occupier’ letter from the gas retailer, asking the customer to set up an account and pay the amounts owing. After calling the gas retailer, the customer was advised that the hot-water system was connected to the natural gas supply and they were responsible for the costs from the time they moved in. Not pleased with the outcome, the customer contacted EWOQ. Outcome: On investigation, the gas retailer accepted that they had failed to provide timely notification to the customer regarding the provision of natural gas. The gas retailer agreed to waive the entire bill for the 18 month period, a total of $981.64, and establish an account for the customer who then accepted responsibility for paying the bill in the future.

ANNUAL REPORT 2014–2015 37 Gas

Gas distributor Gas distributors complaints Table 15: Closed gas distributor complaints by primary issue continued their Primary issue Scheme participant 2010–11 2011–12 2012–13 2013–14 2014–15 downward Provision Australian Gas Networks Limited 1 - - - - 3 Allgas Energy Pty Ltd 5 7 2 2 0 trend, Envestra Limited 1 3 1 4 2 0 decreasing by Total 8 8 6 4 3 15 per cent Supply Envestra Limited 1 1 3 1 4 3 this year, Allgas Energy Pty Ltd 13 9 5 0 1 Australian Gas Networks Limited 1 - - - - 1 down from Total 14 12 6 4 5 20 complaints Customer Australian Gas Networks Limited 1 - - - - 2 last year to 17 Service Allgas Energy Pty Ltd 3 5 1 3 1 Envestra Limited 1 2 3 1 1 1 this year. Total 5 8 2 4 4 Other Envestra Limited 1 1 1 1 3 2 Australian Gas Networks Limited 1 - - - - 1 Allgas Energy Pty Ltd 1 0 1 0 0 Western Downs Regional Council 1 0 0 0 0 Total 3 1 2 3 3 Land Envestra Limited 1 0 0 0 4 2 Allgas Energy Pty Ltd 1 1 1 1 0 Total 1 1 1 5 2 Billing Allgas Energy Pty Ltd 1 0 0 0 0 Total 1 0 0 0 0 Grand Total 32 30 17 20 17

1 From October 2014 Envestra Limited became known as Australian Gas Networks Limited

Table 16: Closed gas complaints by distributor Scheme participant Primary issue 2010–11 2011–12 2012–13 2013–14 2014–15 Allgas Energy Pty Ltd Customer Service 3 5 1 3 1 Supply 13 9 5 0 1 Other 1 0 1 0 0 Billing 1 0 0 0 0 Provision 5 7 2 2 0 Land 1 1 1 1 0 Total 24 22 10 6 2 Envestra Limited 1 Supply 1 3 1 4 3 Other 1 1 1 3 2 Land 0 0 0 4 2 Customer Service 2 3 1 1 1 Provision 3 1 4 2 0 Total 7 8 7 14 8 Western Downs Billing 1 0 0 0 0 Regional Council Total 1 0 0 0 0 Australian Gas Provision - - - - 3 1 Networks Limited Customer Service - - - - 2 Other - - - - 1 Supply - - - - 1 Total - - - - 7 Grand Total 32 30 17 20 17

1 From October 2014 Envestra Limited became known as Australian Gas Networks Limited

38 energy+water ombudsman QUEENSLAND Gas

Increased tariff on amended Wrongful disconnection affects gas account apartment complex In 2014, the customer noticed that he was not receiving In response to a request from the gas retailer, the the Queensland State Government Aged Pension gas supply to an entire residential unit complex was Concession. He contacted his gas retailer who applied disconnected by the distributor. The request was made the concession and amended the previous 12 months’ following a dispute with one of the occupants who had bills. On reviewing the amended bills, the customer not responded to a letter from the retailer addressed to noticed that he had been charged at a higher tariff rate “Dear Occupant” asking them to settle their account. than that on the original invoices. On contacting his gas The owner of the unit complex attempted to have the retailer, they were not able to explain the higher tariff gas reconnected however the retailer would not do so rate, which led to him raising a dispute with EWOQ. until gas consumption for the “Dear Occupant” account was paid. The account was only addressed to the street Outcome: EWOQ investigated the customer’s number of the complex and not to any particular unit. complaint and found that his natural gas account The disconnection resulted in 13 residential units and was originally established and billed on a business their occupants being without gas for cooking and hot tariff, not a residential one. The retailer advised that water for two nights. this was because the original account had been on a business tariff and had not been changed to a Outcome: EWOQ arranged to have unit complex residential tariff when the customer moved into the reconnected the next day. On investigation, it was property. The request by the customer to apply his found that the request to disconnect the gas meter had pension concession prompted the account to revert to previously been rejected by the distributor as it would a residential tariff, and amended billing reflected the have affected too many residents. However, due to an higher tariff rate. As a gesture of good will, the gas error, the distributor completed the disconnection upon retailer applied a credit of $46.67 to the customer’s a second request from the retailer. It was found that account, which equated to the difference in the two the gas consumption relating to the “Dear Occupant” tariff rates over the amended billing period. The gas account was for an unmetered service (gas cook top) retailer additionally applied another credit of $53.33 to most likely for a unit resident who had yet to establish the account for the inconvenience experienced, making an account. The unit complex owner was advised total credits of $100. to engage the services of a gas fitter to identify the source of the gas consumption relating to this account.

In addition, the owner was offered a $100 good will gesture from the retailer. Estimated bills results in huge debt The customer lived in an apartment complex, and had a natural gas meter that was not easily accessible without prior access arrangements being made with the building manager. On numerous occasions the customer contacted his retailer to make suitable arrangements for an actual meter reading, but with one exception these were unsuccessful. As a result, the customer received estimated bills for nearly three years which eventually led to a bill of $2,152 being received. Frustrated with the situation, the customer contacted EWOQ. Outcome: EWOQ arranged for a photograph of the gas meter to be provided to the retailer which was accepted as an actual reading. A revised bill for $386 was then issued. Additionally, EWOQ investigated options to provide access to the meter. Details regarding meter access were updated in the retailer’s customer data base and the department responsible for meter reading was contacted to ensure there are no further issues.

ANNUAL REPORT 2014–2015 39 Water

There were 370 water complaints this year, up seven per cent on last year (347 complaints). 15 other

Table 17: Closed water complaints by primary issue and case type 22 provision Refer to Primary issue Refer Back Higher Level Investigation Total Billing 144 50 21 215 Customer Service 23 17 4 44 Credit 20 11 1 32 Land 18 6 3 27 Provision 17 4 1 22 Supply 11 0 4 15 32 credit Other 15 0 0 15 Total 248 88 34 370

40 energy+water ombudsman QUEENSLAND Water

15 other 15 supply 22 provision

27 land

32 credit

44 customer service

Billing remains the accounting for biggest issue for 58% of all water water customers, complaints

215 billing

“ Please accept my enormous thanks for all your help with this case. It has been one of the more difficult ones to resolve and I believe that without your support and perseverance with the customer, we may not have achieved this outcome by today.” [Scheme participant] ’10–’11 ’11–’12 ’12–’13 ’13–’14 ’14–’15 Number of billing complaints See Table 18 (page 42) for figures.

ANNUAL REPORT 2014–2015 41 Water

Water retailers Table 18: Closed water retailer complaints by primary issue Primary issue Scheme participant 2010–11 2011–12 2012–13 2013–14 2014–15 Water retailer Billing Queensland Urban Utilities 62 96 99 97 100 Unitywater 89 104 133 80 60 complaints Gold Coast City Council - - 58 45 44 decreased by Logan City Council - - 18 14 8 four per cent Redland City Council - - 12 7 3 Allconnex Water* 161 255 - - - on the whole, Total 312 455 320 243 215 down from 304 Credit Unitywater 2 4 25 13 19 last year to 292 Queensland Urban Utilities 0 8 4 4 8 this year. Gold Coast City Council - - 2 5 4 Logan City Council - - 0 1 1 Allconnex Water* 3 13 - - - Total 5 25 31 23 32 Credit cases Customer service Unitywater 10 19 9 8 12 increased by Queensland Urban Utilities 5 15 7 6 11 39 per cent Gold Coast City Council - - 4 6 2 Logan City Council - - 1 0 2 (up from 23 Redland City Council - - 0 0 1 to 32). Allconnex Water* 26 57 - - - Total 41 91 21 20 28 Other Unitywater 21 16 5 2 5 Queensland Urban Utilities 12 19 4 2 2 Gold Coast City Council - - 2 2 2 Allconnex Water* 39 48 - - - Total 72 83 11 6 9 Provision Queensland Urban Utilities 3 3 4 8 4 Unitywater 1 1 3 2 4 Gold Coast City Council - - 1 2 0 Allconnex Water* 3 4 - - - Total 7 8 8 12 8 Grand total 437 662 391 304 292

* Allconnex Water was disestablished on 30 June 2012. Its water and wastewater services were transferred to Gold Coast, Logan and Redland City Councils.

Water bill received after isolation valve switched off The customer contacted his DR on many occasions complaining that the isolation valve (which stops water flowing through the water meter) was faulty. The DR inspected the valve on several occasions but found that it was sound. The customer vacated his property for six months, and given the length of his absence, turned off the isolation valve before he left. Later the customer received a $900 water bill much of which concerned the period he was away. He contacted his DR to dispute the bill, and once again the isolation valve was inspected. This time it was found to be faulty as the meter was recording water passing through it. The valve was replaced and the customer asked that his bill be waived. The DR offered to reduce the bill by $200, however the customer was not satisfied with this and contacted EWOQ. Outcome: On investigation it was determined that the isolation valve was faulty and water was being used by the customer in his absence because of a leak on his property. Had the isolation valve been working properly the water would not have been used. Consequently, the customer accepted the DR’s offer of an ex-gratia payment of $700, in addition to the $200 discount on the customer’s bill, reducing the customer’s account to zero.

42 energy+water ombudsman QUEENSLAND Water

Table 19: Closed water complaints by retailer Scheme participant Primary issue 2010–11 2011–12 2012–13 2013–14 2014–15 Unitywater Billing 89 104 133 80 60 Credit 2 4 25 13 19 Customer service 10 19 9 8 12 Customer Other 21 16 5 2 5 service Provision 1 1 3 2 4 Total 123 144 175 105 100 complaints Queensland Urban Utilities Billing 62 96 99 97 100 were also up Credit 0 8 4 4 8 from 20 to 28. Customer service 5 15 7 6 11 Other 12 19 4 2 2 Provision 3 3 4 8 4 Total 82 141 118 117 125 Gold Coast City Council Billing - - 58 45 44 Credit - - 2 5 4 Customer service - - 4 6 2 Other - - 2 2 2 Provision - - 1 2 0 Total - - 67 60 52 Logan City Council Billing - - 18 14 8 Credit - - 0 1 1 Customer service - - 1 0 2 Total - - 19 15 11 Redland City Council Billing - - 12 7 3 Customer Service - - 0 0 1 Total - - 12 7 4 Allconnex Water* Billing 161 255 - - - Credit 3 13 - - - Customer service 26 57 - - - Other 39 48 - - - Provision 3 4 - - - Total 232 377 - - - Grand Total 437 662 391 304 292

* Allconnex Water was disestablished on 30 June 2012. Its water and wastewater services were transferred to Gold Coast, Logan and Redland City Councils.

Request for cheaper water meter rejected The customer purchased one half of a newly built duplex and applied to the DR for a sub meter to be installed off the existing meter at the premises at a cost of $433. The customer was advised by the council that this option was no longer available and a new meter connected directly to the water main would have to be installed at a cost of $1392. With no other option available to her, the customer paid for a new meter to be installed. After the meter was installed, the customer contracted a plumber to connect the meter to the premises and discovered that a sub meter had actually been installed. Given the significant difference in cost, the customer contacted the DR to request a refund of the difference between the cost of a new and sub meter installation. The customer was advised that the sub meter had been installed in error and would have to be removed and a new meter installed. The customer did not want this to occur as it would have damaged the landscaping she had just completed. The customer sought the assistance of EWOQ. Outcome: Following EWOQ’s intervention the DR agreed that the sub meter adequately serviced the customer’s premises and would not need to be removed. The DR agreed to refund the customer the difference between the two meters, totalling $939.

ANNUAL REPORT 2014–2015 43 Water

Water distributors Table 20: Closed water distributor complaints by primary issue Water distributor Primary issue Scheme participant 2010–11 2011–12 2012–13 2013–14 2014–15 Provision Unitywater 0 1 3 2 8 complaints Queensland Urban Utilities 0 3 3 1 3 increased by Gold Coast City Council - - 0 0 2 81 per cent this Logan City Council - - 0 1 1 Allconnex Water* 1 1 - - - year, up from Total 1 5 6 4 14 43 last year to Supply Queensland Urban Utilities 2 6 6 4 8 78 this year. Unitywater 3 6 3 3 6 Redland City Council - - 0 1 1 Logan City Council - - 1 1 0 Gold Coast City Council - - 1 3 0 Land complaints Allconnex Water* 0 2 - - - more than Total 5 14 11 12 15 doubled up Customer Queensland Urban Utilities 9 4 3 2 11 service Unitywater 7 4 4 2 5 from 11 to 27 Logan City Council - - 1 0 0 this year. Gold Coast City Council - - 1 2 0 Allconnex Water* 4 11 - - - Total 20 19 9 6 16 Other Unitywater 0 8 5 5 4 Gold Coast City Council - - 1 3 1 Queensland Urban Utilities 1 2 7 2 1 Allconnex Water* 0 11 - - - Total 1 21 13 10 6 Land Queensland Urban Utilities 0 4 2 5 13 Unitywater 0 6 2 5 10 Gold Coast City Council - - 0 1 4 Logan City Council - - 2 0 0 Allconnex Water* 9 8 - - - Total 9 18 6 11 27 Grand Total 36 77 45 43 78

* Allconnex Water was disestablished on 30 June 2012. Its water and wastewater services were transferred to Gold Coast, Logan and Redland City Councils.

Customer’s failure to respond leads to caveat over property The customer leased a commercial property and received a letter from the DR for $5,000 in outstanding water rates. The customer was also advised that a caveat had been placed on the building for non- payment. The customer contacted the DR to advise that he leased the building and this was the first he knew of any outstanding debt on the property. He was advised that the DR had attempted to contact him by phone, email and post and that the caveat would not be removed until the customer agreed to pay the overdue fees and enter into a payment plan. The customer was not prepared to agree to this and contacted EWOQ. Outcome: On investigation, it was confirmed that the bills were correct and every attempt had been made by the DR to make contact with the customer. It was also found that the customer had failed to honour a previous payment plan he had agreed to which led to the caveat being placed over the property. In the circumstances EWOQ agreed with the DR’s conduct. Nevertheless, the DR agreed to an extension of time in which to pay the outstanding sum, provided all future bills are paid on time.

44 energy+water ombudsman QUEENSLAND Water

Table 21: Closed water complaints by distributor Scheme participant Primary issue 2010–11 2011–12 2012–13 2013–14 2014–15 Queensland Urban Utilities Customer service 9 4 3 2 11 Land 0 4 2 5 13 Customer Other 1 2 7 2 1 service Provision 0 3 3 1 3 Supply 2 6 6 4 8 complaints Total 12 19 21 14 36 increased Unitywater Customer service 7 4 4 2 5 from six to Land 0 6 2 5 10 Other 0 8 5 5 4 16 this year. Provision 0 1 3 2 8 Supply 3 6 3 3 6 Total 10 25 17 17 33 Logan City Council Customer service - - 1 0 0 Land - - 2 0 0 Provision - - 0 1 1 Supply - - 1 1 0 Total - - 4 2 1 Gold Coast City Council Customer Service - - 1 2 0 Land - - 0 1 4 Other - - 1 3 1 Provision - - 0 0 2 Supply - - 1 3 0 Total - - 3 9 7 Redland City Council Supply 0 0 0 1 1 Total 0 0 0 1 1 Allconnex Water Customer service 4 11 - - - Land 9 8 - - - Other 0 11 - - - Provision 1 1 - - - Supply 0 2 - - - Total 14 33 - - - Grand total 36 77 45 43 78

* Allconnex Water was disestablished on 30 June 2012. Its water and wastewater services were transferred to Gold Coast, Logan and Redland City Councils.

Customer responsible for blockage The customer’s sewerage overflowed on a number of occasions over a 12 month period due to tree roots invading the sewer pipe. On each occasion the customer’s DR cleared the blockages at no expense to the customer. Following the last overflow, the customer received a bill from the DR for $229 for the repairs which had been undertaken. When the customer queried the bill he was told he had been charged because the blockage was due to the roots of a tree on his property invading and blocking the pipe on the customer’s side of the meter. The customer contacted EWOQ. Outcome: On investigation, it was found that the blockage to the pipe had occurred in the pipes on the customer’s property, and under the Water and Sewerage Services Code, the DR was not responsible for repairing the damage to the pipe. As such, the customer was required to pay the bill for $229, however, he was given an extension of time to pay.

ANNUAL REPORT 2014–2015 45 Connecting with stakeholders and the community

One of the functions of the Ombudsman is to promote the operation of the Act to eligible customers and relevant occupiers of land. In discharging this function, EWOQ developed a comprehensive communications plan and an active outreach program promoting the scheme to the community. Our priorities this year have been older Queenslanders, Aboriginal and Torres Strait Islander consumers, and consumers from non-English speaking backgrounds. We have also increased our focus on financial counsellors and supporting community services that assist those in financial hardship.

In the media Stakeholder engagement EWOQ recognises that the media plays an important In 2014–15, EWOQ continued to engage with our role in promoting the Act by informing the public of our stakeholders through the following activities: purpose, services, achievements, and activities, and • regular meetings with our scheme participants to improving their knowledge and understanding of energy discuss operational issues and water related issues. EWOQ endeavours to engage with, and be responsive to, the media concerning issues • attending the Queensland Competition Authority of public interest which fall within EWOQ’s responsibilities. Consumer Advisory Committee meetings During the year: • attending forums and workshops on energy affordability around Australia in person and via teleconference • eight proactive media releases were distributed to over 150 Queensland media outlets • attending the Queensland Association of Independent Legal Services conference on Working with Queensland • 11 interviews were held with Queensland’s regulators, investigators and enforcement agencies television and radio • participating in the Energy Networks Association • 74 stories about EWOQ were published/broadcast Supporting Vulnerable Energy Consumers workshop. (61 per cent as a direct result of the distribution of proactive media releases). Covering regional Queensland Community events We assisted customers from all across Queensland and used a range of community outreach activities Over the year, we actively participated in a number of and information channels to ensure we were events enabling members of the public to seek advice reaching customers and building their awareness and assistance concerning their financial affairs. These of EWOQ’s services. events included: The Ombudsman spent a week visiting and meeting with • participating in training sessions for community State Members, Electorate staff and Council members in organisations such as Uniting Care, Youth and Family Gympie, Maryborough, Fraser Coast, Bundaberg, North and Services, Logan Financial Literacy Action Group, Red South Burnett, Condamine and Toowoomba, promoting the Cross, St Vincent de Paul and Family Support Workers services of the scheme. The Ombudsman also participated • attending community finance workshops held in a range of local media interviews in these regions to by The Smith Family and Queensland Council of promote, and increase community awareness of EWOQ. Social Services • presenting at information days hosted by Marlin ANZOA and ANZEWON Coast Neighbourhood Centre, Cairns West Probus Club, Oz Care, Ravenshoe Chamber of Commerce EWOQ maintained its strong links with the Ombudsman and National Seniors Association community through the Australian and New Zealand Ombudsman Association (ANZOA) and the Australia and • participating in Brisbane City Council, Cherbourg New Zealand Energy and Water Ombudsman Network Aboriginal Shire Council and Innisfail Community (ANZEWON). Support Centre ‘Bring Your Bills’ days • holding a stall at Marlin Coast and Hervey Bay Seniors In addition to regular informal contact with other Expos, Cairns Feast of Cultures, Gordonvale National Ombudsman offices, the Ombudsman met with Families Week and Rockhampton Library. ANZEWON members in November, March and June and participated in ANZOA teleconferences in March and June. EWOQ staff participated in monthly systemic issues meetings with ANZEWON and quarterly meetings with ANZOA interest groups which are centred on

46 energy+water ombudsman QUEENSLAND Connecting with stakeholders and the community

issues of common interest such as human resources, we are working to develop a new website that allows for communications, policy and strategic development. easier user interaction including lodging of complaints and accessing information. Indigenous outreach EWOQ attended the annual National Aborigines and EWOQ update Islander Day Observance Committee (NAIDOC) week We continued to produce the EWOQ Update, a quarterly festival held in Cairns, Rockhampton and Brisbane in July e-newsletter specifically for the Queensland community, 2014, which featured information stalls from government, welfare and health services workers. Published on our organisations and councils on a range of community website, EWOQ Update provides frontline workers with issues. These events provided a great opportunity to tips and information they can draw on to help their clients, showcase EWOQ to indigenous customers. as well as keeping them up to date with changes in the energy and water sectors. This year, we shifted from a This year, the EWOQ Indigenous Investigation Conciliation desktop publisher version of the newsletter to a new and Outreach Officer (IICOO) continued our outreach work online system allowing for a better reading experience and building on the relationships established in 2013–14, and the option to share and subscribe. By utilising an online forming new ones. Our aim is to assist indigenous people system, EWOQ will now have access to statistics for each to become confident and informed consumers, and ensure edition, allowing us to better understand reader interests they are aware of their right to assistance with issues and tailor the EWOQ Update as necessary. relating to their electricity services, and in south east Queensland their water services. Information mail outs The IICOO conducted a number of meetings with representatives from associations including: Once a year, EWOQ conducts an information mail out to all Members of State Parliament (MPs) and a number of social • Inala Elders Aboriginal and Torres Strait Island welfare organisations. This year, the mail out followed the Corporation state election and we took the opportunity to outline the • Kurbingui (youth development) Zillmere role EWOQ plays and provide a number of fact sheets for • Yarrabah Aboriginal Housing, Closing the Gap office display in MP offices. This mail out provides us with an and State primary school opportunity to ensure staff at the MP offices and welfare groups are aware of our services and can refer customers • Prime Minister and Cabinet Office – Indigenous Affairs directly to us when they receive a query or complaint. • Indigenous Consumer Affairs Network For the first time, we utilised our new e-newsletter tool to • Gordonvale Indigenous Community Links send our information mail out electronically to social welfare • Bamanga Budu Ngadimunka Incorporated organisations, providing direct links to a number of resources • Cape York Partnerships on the EWOQ website, including EWOQ brochures and fact • Ngoonbi Co-operative Society Limited sheets. Through the use of the e-newsletter tool we hope to be able to provide timely updates regarding our resources as • Kuranda Neighbourhood Centre changes occur throughout the year. In addition, the IICOO participated in the national talk back program Talk Black on radio station Bumma Bippera, Brochures discussing how to avoid ‘bill shock’ and providing hints and tips on saving electricity. EWOQ produces a range of brochures and fact sheets which provide information on common complaints and Connecting online energy issues. These are reviewed annually and this year a number of improvements were identified. Firstly, feedback This year we continued to make use of online tools such had been received that some of the fact sheets were not as the Energy and Water Complaints Wizard (our self- necessary and others could have more detailed information. assessment tool enabling customers with a complaint Secondly, with the introduction of the National Energy to quickly and easily contact the appropriate authority Customer Framework (NECF) from 1 July 2015, a number to lodge their complaint) and social media. We have of fact sheets needed to be updated to include information seen a steady increase in the number of visitors to the about the changes NECF would bring. Consequently, we Complaints Wizard, and are regularly gaining new followers took this opportunity to completely overhaul the design and on both Facebook and Twitter. Through the use of social content of the fact sheets and brochures. media we hope to boost interaction between EWOQ and The end result of the project saw the roll out of nine the community by informing Queenslanders of the ways information brochures covering topics such as energy and in which EWOQ can assist with their energy and water water fees and charges, disconnection, and switching problems. The EWOQ Twitter profile can be found at www. energy retailers. These brochures were designed in line twitter.com/EWOQld, and the EWOQ Facebook profile at with the existing EWOQ Indigenous brochure and saving www.facebook.com/EWOQld. electricity at home brochure. In addition, the general This year, we also began to lay the foundations for a new EWOQ brochure was updated to include new imagery and project in 2015–16, which will see the redevelopment of more useful information. EWOQ now has a suite of 13 the EWOQ website (www.ewoq.com.au). This website has brochures available on the website at www.ewoq.com.au/ been in operation for eight years without any considerable Publicationsmedia/Brochuresfactsheets.aspx. redevelopment, and in light of new technologies available,

ANNUAL REPORT 2014–2015 47 Our organisation

Charter of Service • Policy and Research –– Led by Ilona Cenefels, Manager Policy and Research Our Charter of Service sets out the standard of service –– Responsible for leading and coordinating research, that residential and small business energy and water analysis and strategic advice and development on customers, and energy and water entities, can expect complex policies and emerging issues. if their dispute is referred to us for investigation and –– Manages the development and implementation and resolution. analysis of internal and external surveys on behalf of The charter outlines: EWOQ. –– Incorporates marketing and communication. • what customers and scheme participants can expect from EWOQ –– Oversees the quality assurance process for EWOQ and the identification of potential systemic issues. • how EWOQ deals with complaints • how we ensure easy access to the scheme For information on our workforce, see page 52. • how we assist customers from different cultures and Advisory Council backgrounds The Advisory Council to the Energy and Water • what we require when acting on behalf of a customer Ombudsman (Advisory Council) monitors the • how customers can help us independence of the EWOQ scheme and provides advice to the Ombudsman on the operation of the Act, • how scheme participants can help us see page 8. • the handling of complaints and feedback relating to EWOQ’s services. Council Members are drawn from groups which represent sectoral interests (i.e. industry and consumer), in exercising their Council responsibilities, however, Council Organisational structure Members must act in the best interests of the scheme. EWOQ’s structure as at 30 June 2015 comprised The Chairperson may hold office for up to five years, 41 positions. however, there is no restriction on the length of terms of EWOQ has three teams who work under the leadership ordinary members. On being appointed to the Advisory of the Energy and Water Ombudsman. Council, members receive an induction to EWOQ to assist in their understanding of the scheme and how the • Operations office operates. –– Led by John Jones, General Manager Operations. The EWOQ Advisory Council Handbook (available at –– Has three regional offices located in Brisbane, www.ewoq.com.au) provides guidance to Council Rockhampton and Cairns. Members on their roles and responsibilities, while the –– Is responsible for the day-to-day dispute resolution Advisory Council Code of Conduct (also available at and investigation of complaints and identifying www.ewoq.com.au) aims to assist Council Members to systemic issues. discharge their responsibilities under the Public Sector –– The South Queensland region encompasses the Ethics Act 1994. It is not a prescriptive Code, but one Gold Coast in the South, Gympie to the north, and which contains ethics principles and values which Council west to the South Australian border. members have agreed to put into practice. –– The Central Queensland region covers the area north Council Members are entitled to meeting fees approved of Gympie to Mackay and west to the Northern by the Governor-in-Council, and reimbursement for Territory border. reasonable costs incurred in attending Council meetings, –– The North Queensland region is north of Mackay based on the Department of Justice and Attorney-General (including the Torres Strait islands) to Mount Isa in guideline “Remuneration of Part-time Chairs and Members the west. of Government Boards, Committees and Statutory Authorities”. Details of fees paid to Council Members are • Corporate Services available through the Queensland Government’s Open –– Led by Lyn Stevens, Manager Corporate Services. Data website – visit qld.gov.au/data. –– Provides the essential services vital for the day-to- Shared service support day running of EWOQ, including finances, records management, information technology, human The Corporate Administration Agency (CAA) provides resource services and administration. EWOQ with back office support including financial, human –– Provides training and professional development resource and information systems services. CAA is a to staff. state government entity established to provide a range of corporate support services to a number of statutory bodies and services in various ways.

48 energy+water ombudsman QUEENSLAND Our organisation

Organisational structure

Energy and Water Ombudsman Executive Support Officer General Manager Operations Manager Manager Policy Corporate and Research Services Regional Regional Regional Manager South Manager Central Manager North Queensland Queensland Queensland Region Region Region Senior Principal Finance Communication Officer and Marketing Officer Team Leader Team Leader Senior Enquiry Team Leader Team Leader – Investigation – Investigation and Referral – Investigation – Investigation and Conciliation and Conciliation Officer and Conciliation and Conciliation Research Corporate and Systemic Support Officer Issues Officer Investigation Investigation Investigation Investigation Enquiry and and Conciliation and Conciliation and Conciliation and Conciliation Referral Officer Officer Officer Officer Officer Principal Training and Senior Advisor Development Officer Investigation Investigation Investigation Investigation Enquiry and and Conciliation and Conciliation and Conciliation and Conciliation Referral Officer Officer Officer Officer Officer Senior Senior Advisor Information (based in Technology Rockhampton) Indigenous Officer Investigation Investigation Investigation Enquiry and Investigation and Conciliation and Conciliation and Conciliation Referral Officer Conciliation and Officer Officer Officer Outreach Officer Senior Systems Analyst Investigation Investigation Investigation and Conciliation and Conciliation and Conciliation Officer Officer Officer Senior Corporate Support Officer

The shared services model offers a number of advantages The framework is available on our website www.ewoq. to EWOQ by: com.au/AboutEWOQ/Corporatedocuments.aspx • removing the need for EWOQ to employ officers to A number of other committees oversee EWOQ’s corporate conduct non-core support activities governance including: • reducing costs through economies of scale by investing Executive Management Group in business systems for a number of clients The Executive Management Group (EMG) assists the • providing EWOQ with access to a pool of experience Ombudsman in the stewardship of EWOQ and plays an and expertise. important role in: Corporate governance • setting and monitoring the strategic direction • monitoring financial and non-financial performance EWOQ’s corporate governance framework guides the way we manage our business, minimise our risks and meet our • promoting innovation, research, continuous legislative obligations. Our systems are based on strong improvement and quality client service ethical foundations and our commitment to fairness, • ensuring the optimum use of human, financial and accountability and transparency. information resources and infrastructure.

ANNUAL REPORT 2014–2015 49 Our organisation

Its members are: Government-owned energy corporations such as ENERGEX and Ergon Energy. Ilona also worked in the • Energy and Water Ombudsman (Chair) Future Technologies area, representing the Queensland F orbes Smith is the Energy and Water Ombudsman Government at National stakeholder meetings to for Queensland having been appointed to the position develop the Geothermal Framework for Australia and in July 2011. He holds a Bachelor of Laws from the the tender process for the Queensland Government’s University of Queensland and was admitted as a Solar mapping project. barrister-at-law in 1981. Prior to becoming the Energy and Water Ombudsman, Forbes was the Deputy Audit and Risk Management Committee Queensland Ombudsman for four years, and between The role of the Audit and Risk Management Committee July 2005 and December 2006 Queensland’s first Chief is to provide independent assurance and assistance to Inspector of Prisons. Previous appointments include the Ombudsman concerning EWOQ’s risk and compliance senior executive positions at the Crime and Misconduct frameworks and external legislative requirements. It Commission, the Criminal Justice Commission, and the reports directly to the Energy and Water Ombudsman. National Crime Authority. • General Manager Operations This year the Committee was revitalised through the appointment of a new independent Chair, Mr Trevor J ohn Jones was appointed to the Energy Ombudsman Zimmerman, and an independent external member, Queensland (EOQ) as General Manager Operations in Mr Phillip Procopis. Both gentlemen bring a wealth July 2007. John is responsible for leading the complaint of experience and expertise to their roles. Ms Ilona investigation and dispute resolution functions of the Cenefels, EWOQ’s Manager Policy and Research, office. John also represents EWOQ at forums with state and national jurisdictional regulators, industry is also a Committee member. and consumer representatives. Prior to joining the Ombudsman scheme John was Manager of the Strategic planing former Energy Consumer Protection Office. John has A four year Strategic Plan is prepared annually and worked with a number of government agencies during describes our vision, objectives, strategies and his career mainly in human resource management and industrial relations roles. John holds a Diploma performance indicators. The plan informs the development of Business Administration from Central Queensland of our business plan, which details the activities which we University, Certificate in Corporate Investigations from need to undertake to achieve our strategic objectives. the University of Western Sydney and a Mediator Accreditation Certificate from the Queensland Mandatory online reporting Department of Justice. Information on consultants engaged by EWOQ, overseas • Manager Corporate Services travel and the Queensland Cultural Diversity Policy are L yn Stevens was appointed to the EOQ as Manager published through the Queensland Government’s Open Corporate Services in 2007. Lyn holds an Associate Data website – visit qld.gov.au/data. Diploma of Business (Accounting). Lyn established and continues to manage the corporate function of Employee Relations EWOQ, she has extensive experience in managing and delivering a broad and comprehensive range of EWOQ has worked with the Public Service Commission corporate support activities, managing organisational to contribute to the government’s negotiation of the change processes and developing and implementing proposed core State Government Departments’ Certified effective and efficient systems and processes. Lyn’s Agreement (EB) and the modernisation of the Public career has seen her work with a number of government Service Officer and Other Employees Award – State 2014. departments. Prior to moving to EWOQ she worked with the Department of Mines and Energy as Manager, Workforce diversity Strategic Resource Management Branch where she developed and monitored large and complex EWOQ respects, and is supportive of, diversity and equity organisational budgets. Lyn also has broad knowledge in the workplace and the need to reflect the community of human resource management, corporate governance it serves. EWOQ continued to work with staff to ensure and information management. they interact respectfully and competently with people from all cultural backgrounds. • Manager Policy and Research Ilona Cenefels joined EOQ as the Manager Policy EWOQ is an Equal Employment Opportunity (EEO) and Research in June 2010. She holds a Bachelor of employer that aims to employ a workforce more Business (Marketing) from Southern Cross University. representative of the wider community. She has worked in both the private and public sector, working as a member of the project team for a private Code of conduct and ethics utility company in Victoria during the acquisition of a gas distribution network business, before returning to EWOQ and its staff are required to make ethical decisions, Queensland. Her career in the Queensland Government be accountable for their actions and demonstrate integrity. commenced in Disability Services Queensland and has EWOQ is also committed to maintaining a positive included working for the Department of Employment organisational culture that values and promotes ethical Economic Development and Innovation with the leadership and strong ethical decision making.

50 energy+water ombudsman QUEENSLAND Our organisation

All employees are required to observe the Queensland for the office. Business continuity is recognised as a Public Service Code of Conduct. The ethics principles and key risk for the organisation and work will continue on values contained in the Code of Conduct are incorporated this next year, as well as embedding risk management into EWOQ policies, procedures and plans as well as practices in our daily work routine. each employee’s performance plan. All new employees undertake ethics and code of conduct training as part of their Information and record keeping mandatory induction. Existing employees are required to undertake annual code of conduct refresher training. EWOQ A major Records Management Compliance project was also offers ethical decision making training to employees. undertaken in the 2013–2014 financial year to ensure that EWOQ met best practice records management standards. An important aspect of the project was to promote the Workplace health and safety importance of records management across the office The management and staff of EWOQ are committed to and encourage all staff to take individual responsibility for providing and maintaining a safe, healthy and supportive good record-keeping. As a result of this project, EWOQ work environment at all times. Information about health implemented the following policies, plans and standards: and wellbeing is regularly communicated to staff members • Business classification scheme who are required to actively participate in consultation and communication with supervisors and management • Operational recordkeeping implementation plan regarding health, safety and wellbeing issues. • Strategic recordkeeping implementation plan This year, EWOQ continued to undertake ergonomic • Records management policy assessments for staff to minimise risk of injury and to • Records metadata and naming standards policy enhance productivity. Additionally, we began installing • Retention and disposal schedule and disclosure log duress alarms in all of our offices to ensure the safety of • Abbreviations standard staff and visitors during meetings at our premises. • Information security policy. EWOQ continues to have a low level of workplace accidents with no WorkCover claims being lodged in 2014- The new records management system was implemented 15. EWOQ officers work closely with collocated agencies in March 2014 accompanied by a comprehensive training at all our office locations to improve workplace health and program for all staff. safety in shared areas of each building. In line with Queensland State Archive (QSA) requirements, records created and/or received as part of EWOQ business Risk management which are considered ephemeral, can only be considered for destruction in accordance with the General Retention Risk Management is an integral part of strategic and and Disposal schedule for Administrative Records (QDAN business planning, and the everyday activities of 249) and the Energy and Water Ombudsman Queensland EWOQ. EWOQ is committed to the implementation of Retention and Disposal Schedule (QDAN 700). QDAN risk management strategies that ensure efficiency and 700 version 1 was reviewed and approved by QSA effectiveness in meeting EWOQ’s objectives, while at the on 19 May 2014. All other records are destroyed only same time providing a safe and healthy workplace for staff. with the permission of the Ombudsman or delegate in EWOQ has statutory responsibility for ensuring accordance with a disposal method approved by the QSA. appropriate risk management and mitigation processes This year we finalised the majority of the recommendations are in place. Our risk management framework assists in of the project. A comprehensive review of the business achieving consistent risk management practices across classification scheme is in progress. the organisation. In applying risk management principles, it is expected that EWOQ officers at all levels will: Right to information and the • minimise the agency’s vulnerability to both internal protection of personal information and external threats Consistent with the Right to Information Act, EWOQ • maximise opportunities to enhance service delivery provides access to information held by this office unless, and create value on balance, it is contrary to the public interest to provide • contribute to effective corporate governance by the information. This approach has resulted in a significant supporting the flow of timely and effective information reduction in the number of formal Right to Information to and from key decision makers. (RTI) applications received by the office. To assist staff in understanding and discharging their obligations Business continuity management extensive training is provided in both RTI and Information Privacy principles. EWOQ’s external service provider Corporate Administration Agency maintains a Business Continuity In 2014–15, EWOQ participated in the Office of the Plan which provides for the recovery and/or continuity Information Commissioner (OIC) satisfaction survey, of our information technology, human resources and Privacy Awareness Week, Right to Information Week finance functions. While we were unable to complete our (RTI) and contributed to the OIC, RTI and Information Business Continuity Plan this year we did develop for the Privacy Annual Report. EWOQ also publishes a publication first time a comprehensive Risk Management Framework scheme and disclosure log on our website.

ANNUAL REPORT 2014–2015 51 Our people

Workplace profile • Role specific training Complaints management; Financial management; Overview of workforce: Resolve Administrator • 40 full time equivalents • Compliance training • 64% female employees Good decision making; Right to information; • 10% part time employees Ethics; Code of conduct; Records management; • Average number of service years 5 Business writing • Permanent retention rate is 95% During the year we developed a new Performance • Permanent separation rate is 5% Management Framework which commenced on 1 July 2015. This framework will continue to provide EWOQ currently has 40 full time equivalent staff employed opportunities for staff and managers to identify training on a permanent basis throughout Queensland. The and development needs to meet performance objectives. percentage of permanent employees who have separated from EWOQ during 2014–15 is 5 per cent. Work/life balance Whilst EWOQ has been fortunate in having a stable Flexible working arrangements workforce, regular reviews of recruitment strategies and processes ensure new employees are appropriately skilled To help our people balance work, family commitments and and able to perform their roles to a high standard. outside interests we offer flexible working arrangements such as accrued time, purchased leave, paid maternity There were no redundancy, early retirement or leave, and part-time work arrangements. retrenchment packages paid to employees in 2014–15. Employee assistance program Learning and development Our people continued to have free access to the Employee Assistance Program, a confidential counselling service EWOQ is committed to developing and maintaining for them and their families. The service was provided by capability for staff to ensure services are delivered qualified, experienced professionals through Davidson efficiently and effectively. This is achieved through in-house Trehaire Corpsych. and external training sessions and attendance at seminars and conferences. Communicating with staff During 2014–15, EWOQ’s Personal Development and This year, we undertook a project to develop and implement Achievement Plan process allowed for the identification a user friendly intranet ensuring timely dissemination of of staff training required to meet performance objectives. relevant information that assists staff with their roles and The Principal Training and Development Officer also worked responsibilities. To engage staff during the initial development with managers to identify any training and development stages, a naming competition was held with over 50 entries required to meet changes in the energy and water industry. submitted. The name ‘The Grid’ was chosen as the winner. EWOQ continues to invest in its leaders and emerging The Grid was rolled out on 30 March 2015 along with an leaders through training sessions and workshops to further information session. Initial engagement has been positive develop leadership, coaching and mentoring skills. and staff are to be commended for embracing the change. All staff are encouraged to learn and develop their skills In addition to The Grid, staff are kept up to date on through on-the-job training and self-directed learning. operational changes through regular team meetings. We have offered technical and compliance training and EWOQ also produces a quarterly staff newsletter PowerOn, professional development activities on a range of topics via which provides non-work related news and updates. monthly training sessions, workshops and short courses. These have included: Community involvement • Professional development Our staff are dedicated to helping the community both Coac hing and mentoring; Managing unreasonable personally and professionally. In 2014–15 we supported: conduct; Practical People Management Matters; • Bowel Cancer Australia Cultivating positive workplaces; Managing for a healthy • World Animal Protection workplace; The role of the manager • YoungCare • Technical skill development • Red Cross Industr y specific technical training; Microsoft suite; • Jeans for Genes Self-care; Electrical distributors and water providers • RSPCA field trips (Brisbane, Cairns and Rockhampton) • Smith Family Christmas toy appeal.

52 energy+water ombudsman QUEENSLAND Financial Summary

The financial records of the Office of the Energy and Water Ombudsman have been properly maintained throughout the year ending 30 June 2015 in compliance with prescribed requirements. The risk management and control systems relating to financial management have been operating efficiently, effectively and economically throughout the financial year.

Funding of the Energy and Water of the scheme in relation to case types of refer back to supplier, referral to higher level, investigations level 1 and Ombudsman Scheme investigations level 2. Actual user pays fees are calculated Although the Office of the Energy and Water Ombudsman using actual expenditure and actual usage of the scheme was established by Queensland legislation as a public by each participant. Investigations level 3 and final orders service office, it is not funded from consolidated revenue. are not included in the advance user pays fees and are Rather, it is funded by participation fees and user pays captured in the calculation of actual user pays fees. Under fees levied on energy and water retailers and distributors legislation, scheme participants have 14 days to pay who participate in the Ombudsman scheme. The majority invoices relating to EWOQ fees. of energy and water Ombudsman offices in Australia are EWOQ maintains a case management system, Resolve, to similarly funded. register each case and to record all details, activities and EWOQ’s user pays model reflects the level of time and documents relating to each case. Each case is uniquely resources needed to resolve individual disputes. In identified within Resolve and EWOQ staff record the addition, scheme participants are liable to increased fees amount of time (in minutes) they spend on dealing with should they fail to adequately respond to our investigations each case. Both the advance user pays fees and the actual or do so in a timely way. This process is designed to user pays fees for each case type are calculated using encourage the early closure of complaint investigations. number of cases closed and average time (in minutes) Under s. 65(1) of the Energy and Water Ombudsman Act taken to close cases. EWOQ uses a single fee per case for 2006 an annual participation fee is also imposed on each refer back to supplier, referral to higher level, investigation scheme participant. level 1 and investigation level 2 cases. Investigation level 3 cases are charged at the cost of an investigation level 2 The annual participant fees for 2014–15 were: plus a cost per minute for actual minutes at investigation Entity type Annual fee level 3. Final orders are charged at the investigation level Energy entity providing customer connection $5,000 of the case when the investigation ceased, plus a fixed fee services under only one energy Act. of $4,000 per final order. Energy entity providing customer connection $10,000 services under two energy Acts. Should EWOQ find that the approved budget is insufficient Energy entity providing customer retail services $5,000 to meet its operating costs, supplementary funding may under only one energy Act. be required from scheme participants. This has occurred Energy entity providing customer retail services $10,000 once in the history of EWOQ, when in 2008–09 EWOQ under two energy Acts. had approval for and invoiced the scheme participants All water entities $10,000 for supplementary funding of $600,000 – this related to a significant increase in complaint numbers that resulted * Under s. 4 of the Energy and Water Ombudsman Regulation 2007, Western Downs Regional Council and Maranoa Regional in lengthy delays in resolving complaints (workload Council receive a variation to their scheme participant fees. higher than staff capacity). Conversely, at the end of the financial year any surplus funds will be returned to scheme User pays fees are invoiced prior to the commencement participants. The reconciliations at end of December and of each quarter (advance user pays fees) and are then end of June each year ensure we meet our legislative reconciled after the end of December and the end of requirement that scheme participants are only charged the June (actual user pays fees). The advance user pays fees actual costs required to operate the scheme for that period. are based on each scheme participant’s previous usage

ANNUAL REPORT 2014–2015 53 Financial Summary

Level 2 Investigation Plant and Equipment Accrued employee (12.5%) (0.7%) entitlements (19.4%) Prepayments Level 3 Investigation (1.9%) (15.1%) Receivables Unearned revenue (19.5%) (28.3%) Refer back (19.4%)

Level 1 Investigation (25.9%)

Refer to higher level Cash and cash Payables (26.3%) equivalents (52.3%) (77.8%)

Figure 6: User pays fee breakdown Figure 7: Assets as at Figure 8: Liabilities as at 2014–15 30 June 2015 30 June 2015 See page 68 for figures. See page 58 for figures. See page 58 for figures.

Our financial performance Our Expenditure EWOQ’s budget for 2014–15 was again developed from Expenses for the year amounted to $6.033 million, a zero base – that is without any surplus funds from the down from $6.130 million in 2013-14. Employee previous financial year – taking into account all known expenses accounted for $4.430 million or 73.4 per cent, changes in expenditure from the previous year and likely with supplies and services accounting for a further future expenses. 25.9 per cent or $1.561 million. Depreciation, audit fees, and costs associated with our Advisory Council made up During the year EWOQ deferred a number of projects the balance of our total expenditure. to the 2015–16 financial year due to concerns we held about the late payment of significant fees by one Our financial position scheme participant, and our capacity to discharge our core business in the event the fees were not paid. As shown in the Statement of Financial Position, the office Consequently, the Statement of Comprehensive Income ended the year with total equity of $253,000. reflects a lower level of income and expenditure as a Assets result of the actions this office took to address this issue. Ultimately, the fees were paid, resulting in a surplus which EWOQ’s assets amounted to $2.263 million and primarily was returned to relevant scheme participants following the relating to cash and cash equivalents $1.761 million and end of year reconciliation. receivable of $442,000. As shown in our Statement of Comprehensive Income Liabilities on page 57, the Office’s operating result (expenses minus EWOQ’s liabilities amounted to $2.010 million primarily income) for 2014–15 was $8,000. This income relates relating to payables of $1.051 million, unearned revenue primarily to interest charged to scheme participants under of $569,000, and employee benefits (annual leave) of the Act for late payment of scheme fees. $390,000. Unearned revenue relates to user pays fees Our Income received from scheme participants for 2015–16 quarter one advances. Income for 2014–15 was $6.041 million, down from $6.139 million in 2013–14. The 2014–15 income consisted of participation fees of $165,600, user pays fees of $5.803 million, and other revenue of $72,706. Figure 6 shows the split of user pays fees by case types.

54 energy+water ombudsman QUEENSLAND Office of the Energy and Water Ombudsman (trading as Energy and Water Ombudsman Queensland) Financial Statements for the financial year ended 30 June 2015

Contents Page Statement of Comprehensive Income ���������������������������������������������������������������� 57 Statement of Financial Position ��������������������������������������������������������������������������� 58 Statement of Changes in Equity ������������������������������������������������������������������������� 59 Statement of Cash Flows ������������������������������������������������������������������������������������ 60 Notes to and forming part of the Financial Statements �������������������������������������� 61 Objectiv es and Principal Activities of Energy and Water Ombudsman Queensland Note 1: Summary of Significant Accounting Policies ������������������������������������� 62 Note 2: User Charges and Fees ��������������������������������������������������������������������� 68 Note 3: Other Revenues ��������������������������������������������������������������������������������� 68 Note 4: Employee Expenses �������������������������������������������������������������������������� 68 Note 5: Key Management Personnel and Remuneration ������������������������������� 69 Note 6: Supplies and Services ������������������������������������������������������������������������ 72 Note 7: Other Expenses ��������������������������������������������������������������������������������� 72 Note 8: Cash and Cash Equivalents ���������������������������������������������������������������� 73 Note 9: Receivables ���������������������������������������������������������������������������������������� 73 Note 10: Plant and Equipment �������������������������������������������������������������������������74 Note 11: Payables ��������������������������������������������������������������������������������������������74 Note 12: Accrued Employee Benefits ��������������������������������������������������������������74 Note 13: Reconciliation of Operating Surplus to Net Cash from (used in) Operating Activities ������������������������������������������������� 75 Note 14: Commitments for Expenditure �������������������������������������������������������� 75 Note 15: Contingencies �����������������������������������������������������������������������������������76 Note 16: Financial Instruments ������������������������������������������������������������������������76 Certificate of the Office of the Energy and Water Ombudsman ������������������������� 80 Independent Auditor’s Report ����������������������������������������������������������������������������� 81

ANNUAL REPORT 2014–2015 55 Financial Statements

General Information

These financial statements cover the Office of the Energy and Water Ombudsman trading as Energy and Water Ombudsman Queensland (EWOQ). It has no controlled entities.

EWOQ is a free and independent dispute resolution service for Queensland’s energy consumers and water customers in South East Queensland. The Office of the Energy and Water Ombudsman was established under the Energy and Water Ombudsman Act 2006. The Office of the Energy and Water Ombudsman is controlled by the State of Queensland which is the ultimate parent. The head office and principal place of business of the Office is: Level 16, 53 Albert Street, Brisbane. A description of the nature of Energy and Water Ombudsman Queensland’s operations and its principal activities is included in the notes to the financial statements. For information in relation to the Office of the Energy and Water Ombudsman financial statements please call 1800 662 837, email [email protected] or visit Energy and Water Ombudsman Queensland’s internet site at www.ewoq.com.au.

56 energy+water ombudsman QUEENSLAND Financial Statements

Office of the Energy and Water Ombudsman StatementOffice of the of Energy Comprehensive and Water Income Ombudsman STATEMENT OF COMPREHENSIVE INCOME for the year ended 3030 June June 2015 2015

2015 2014 Notes $'000 $'000 Income from Continuing Operations Revenue User charges and fees 2 5,984 6,088 Other revenue 3 58 51

Total Income from Continuing Operations 6,042 6,139

Expenses from Continuing Operations Employee expenses 4 4,431 4,177 Supplies and services 6 1,561 1,928 Depreciation 10 18 3 Other expenses 7 24 23

Total Expenses from Continuing Operations 6,034 6,131

Operating Result from Continuing Operations 8 8

Total Comprehensive Income 8 8

The accompanying notes form part of these statements.

ANNUAL REPORT 2014–2015 57

- 3 - Financial Statements

Office of the Energy and Water Ombudsman StatementOffice of the of Energy Financial and Position Water Ombudsman STATEMENT OF FINANCIAL POSITION as at 30 JuneJune 20152015

2015 2014 Notes $'000 $'000 Current Assets Cash and cash equivalents 8 1,761 2,031 Receivables 9 442 614 Prepayments 44 27

Total Current Assets 2,247 2,672

Non Current Assets Plant and equipment 10 16 34

Total Non Current Assets 16 34

Total Assets 2,263 2,706

Current Liabilities Payables 11 1,051 902 Accrued employee benefits 12 390 356 Unearned Revenue 569 1,203

Total Current Liabilities 2,010 2,461

Total Liabilities 2,010 2,461

Net Assets 253 245

Equity Accumulated surplus 174 166 Contributed equity 79 79

Total Equity 253 245

The accompanying notes form part of these statements.

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- 4 - Financial Statements

Office of the Energy and Water Ombudsman StatementOffice of the of Energy Changes and in Water Equity Ombudsman forSTATEMENT the year ended OF CHANGES 30 June IN2015 EQUITY for the year ended 30 June 2015

Accumulated Contributed Surplus Equity TOTAL $'000 $'000 $'000 Balance as at 1 July 2013 158 79 237 Operating Result from Continuing Operations 8 - 8

Balance as at 30 June 2014 166 79 245

Balance as at 1 July 2014 166 79 245 Operating Result from Continuing Operations 8 - 8

Balance as at 30 June 2015 174 79 253

The accompanying notes form part of these statements.

ANNUAL REPORT 2014–2015 59

- 5 - Financial Statements

Office of the Energy and Water Ombudsman StatementOffice of the of Energy Cash Flows and Water Ombudsman STATEMENT OF CASH FLOWS for the year ended 3030 June June 2015 2015

2015 2014 Office of the Energy and Water Ombudsman Notes $'000 $'000 Cash flows from operating activities Inflows: User charges and fees 5,509 6,558 Interest receipts 56 51 GST input tax credits from ATO 175 214 GST collected from members/customers 2 1 Other 2 1 Outflows: Employee expenses (4,392) (4,124) Supplies and services (1,429) (1,990) GST remitted to ATO (2) (1) GST paid to suppliers (167) (217) Other (24) (23)

Net cash provided by (used in) operating activities 13 (270) 470 Cash flows from investing activities Outflows: Payments for property plant and equipment - (31)

Net cash provided by (used in) investing activities - (31)

Net increase (decrease) in cash and cash equivalents (270) 439 Cash and cash equivalents at beginning of financial year 2,031 1,592

Cash and cash equivalents at end of financial year 8 1,761 2,031

The accompanying notes form part of these statements.

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- 6 - Financial Statements

Office of the Energy and Water Ombudsman Statement of Cash Flows OfficeNotes of to the and Energy forming and part Water of the Ombudsman Financial Statements for the year ended 30 June 2015 NOTES2014–15 TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2014-15

Objectives and Principal Activities of Energy and Water Ombudsman Queensland Note 1: Summary of Significant Accounting Policies Note 2: User Charges and Fees Note 3: Other Revenues Note 4: Employee Expenses Note 5: Key Management Personnel and Remuneration Note 6: Supplies and Services Note 7: Other Expenses Note 8: Cash and Cash Equivalents Note 9: Receivables Note 10: Plant and Equipment Note 11: Payables Note 12: Accrued Employee Benefits Note 13: Reconciliation of Operating Surplus to Net Cash from (used in) Operating Activities Note 14: Commitments for Expenditure Note 15: Contingencies Note 16: Financial Instruments Note 17: Events Occurring After Balance Date

ANNUAL REPORT 2014–2015 61

- 7 - Financial Statements

Office of the Energy and Water Ombudsman NotesOffice ofto theand Energy forming and part Water of the Ombudsman Financial Statements Notes to and forming part of the Financial Statements 2014–15NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2014-15 2014–15

Objectives and Principal Activities of the Energy and Water Ombudsman Queensland Office of the Energy and Water Ombudsman The Energy and Water Ombudsman Act 2006 provides the legislative basis and framework Objectives and Principal Activities of Energy and for the delivery of services by the Office of the Energy and Water Ombudsman (trading as Water Ombudsman Queensland EWOQ). Note 1: Summary of Significant Accounting EWOQ provides an independent dispute resolution service to meet the diverse needs of Policies relevant small electricity, reticulated gas and water customers and their relevant energy and water retailers and distributors in Queensland.

We aim to: • Contribute to improved service delivery in the energy and water sector • Foster a culture of excellence • Adhere to the principles of independence and accountability in all we do • Provide all Queenslanders with equal access to our service These financial statements have been prepared on the basis and assumption that there will be no significant jurisdictional or legislative changes adversely effecting the financial operations of EWOQ.

1. Summary of Significant Accounting Policies (a) Statement of Compliance EWOQ has prepared these financial statements in compliance with section 43 of the Financial and Performance Management Standard 2009 .

These financial statements are general purpose financial statements, and have been prepared on an accrual basis in accordance with Australian Accounting Standards and Interpretations. In addition, the financial statements comply with Queensland Treasury's Financial Reporting Requirements for the year ending 30 June 2015, and other authoritative pronouncements. With respect to compliance with Australian Accounting Standards and Interpretations, EWOQ has applied those requirements applicable to not-for-profit entities, as EWOQ is a not-for-profit office. Except where stated, the historical cost convention is used.

(b) The Reporting Entity The financial statements include the value of all income, expenses, assets, liabilities and equity of EWOQ. EWOQ does not have any controlled entities. (c) User Charges and Fees EWOQ is fully funded through legislated fees and charges to industry scheme participants through a combination of annual participation and quarterly user pays fees. EWOQ invoices in advance for annual participation fees. In relation to quarterly user pays fees, EWOQ invoices in advance based on estimated usage and then reconciles back to actuals twice a year. Participation and user pays fees are controlled by EWOQ where they can be deployed for the achievement of EWOQ's objectives.

User pays fee invoices are raised against unearned revenue. All fees are recognised as user charges revenue when the operating costs are incurred.

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- 8 - Financial Statements

Office of the Energy and Water Ombudsman NotesOffice ofto theand Energy forming and part Water of the Ombudsman Financial Statements 2014–15NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2014-15

1. Summary of Significant Accounting Policies (contd) (d) Grants and Contributions Grants, contributions, donations and gifts that are non-reciprocal in nature are recognised as revenue in the year in which EWOQ obtains control over them. Where grants are received that are reciprocal in nature, revenue is progressively recognised as it is earned, according to the terms of the funding agreements. Contributed assets are recognised at their fair value. Contributions of services are recognised only when a fair value can be determined reliably and the services would have been purchased if they had not been donated. (e) Special Payments Special Payments include ex gratia expenditure and other expenditure that EWOQ is not contractually or legally obligated to make to other parties. In compliance with the Financial and Performance Management Standard 2009 , EWOQ maintains a register setting out details of all special payments greater than $5,000. The total of all special payments (including those of $5,000 or less) is disclosed separately within Other Expenses (Note 7). However, descriptions of the nature of special payments are only provided for special payments greater than $5,000.

(f) Cash and Cash Equivalents For the purposes of the Statement of Financial Position and the Statement of Cash Flows, cash assets include all cash and cheques receipted but not banked at 30 June as well as deposits at call with financial institutions. (g) Receivables Trade debtors are recognised at the amounts due at the time of sale or service delivery i.e. the agreed purchase/contract price. Settlement of these amounts is required within 14 days from date invoice received. The collectability of receivables is assessed periodically with provision being made for impairment. (h) Plant and Equipment Plant and equipment is valued at cost in accordance with Queensland Treasury's Non- Current Asset Accounting Policies for the Queensland Public Sector. Expenditure on plant and equipment is capitalised to the extent that future economic benefits will flow to the entity and the asset can be reliably separated and measured. Items with a total value of less than $5,000 are treated as an expense in the year of acquisition.

(i) Depreciation of Plant and Equipment Depreciation on property, plant and equipment is calculated on a straight-line basis so as to allocate the net cost of each depreciable asset progressively over it's estimated useful life to EWOQ.

Any expenditure that increases the originally assessed capacity or service potential of an asset is capitalised and the new depreciable amount is depreciated over the remaining useful life of the asset to EWOQ.

ANNUAL REPORT 2014–2015 63

- 9 - Financial Statements

Office of the Energy and Water Ombudsman NotesOffice ofto theand Energy forming and part Water of the Ombudsman Financial Statements 2014–15NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2014-15

1. Summary of Significant Accounting Policies (contd) (i) Depreciation of Plant and Equipment (contd) For each class of depreciable asset the following depreciation rates were used:

Class Rate % Plant and equipment: 12.5-20.0

(j) Impairment of Non-Current Assets All non-current physical assets are assessed for indicators of impairment on an annual basis. If an indicator of possible impairment exists, EWOQ determines the asset's recoverable amount. Any amount by which the asset's carrying amount exceeds the recoverable amount is recorded as an impairment loss.

The asset's recoverable amount is determined as the higher of the asset's fair value less costs to sell and depreciated replacement cost.

(k) Leases Operating lease payments are representative of the pattern of benefits derived from the leased assets and are expensed in the periods in which they are incurred.

(l) Payables Trade creditors are recognised upon receipt of the goods or services ordered and are measured at the nominal amount i.e. agreed purchase/contract price, gross of applicable trade and other discounts. Amounts owing are unsecured and are generally settled on 30 day terms.

(m) Financial Instruments Recognition Financial assets and financial liabilities are recognised in the Statement of Financial Position when EWOQ becomes party to the contractual provisions of the financial instrument. Classification Financial instruments are classified and measured as follows: • Cash and cash equivalents - held at fair value through profit or loss • Receivables - held at amortised cost EWOQ does not enter into transactions for speculative purposes, nor for hedging. Apart from cash and cash equivalents, EWOQ holds no financial assets classified at fair value through profit or loss. All disclosures relating to the measurement and financial risk management of financial instruments held by EWOQ are included in Note 16.

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- 10 - Financial Statements

Office of the Energy and Water Ombudsman NotesOffice ofto theand Energy forming and part Water of the Ombudsman Financial Statements 2014–15NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2014-15

1. Summary of Significant Accounting Policies (contd) (n) Employee Benefits Employer superannuation contributions and long service leave levies are regarded as employee benefits. Payroll tax and workers' compensation insurance are a consequence of employing employees, but are not counted in an employee's total remuneration package. They are not employee benefits and are recognised separately as employee related expenses.

Wages, Salaries, Annual Leave and Sick Leave Wages, salaries and annual leave due but unpaid at reporting date are recognised in the Statement of Financial Position at current salary rates. For unpaid entitlements expected to be paid within 12 months, the liabilities are recognised at their undiscounted values. Entitlements not expected to be paid within 12 months are recognised at their present value, calculated using yields on Fixed rate Commonwealth Government bonds of similar maturity, after projecting the remuneration rates expected to apply at the time of likely settlement.

Prior history indicates that on average, sick leave taken each reporting period is less than the entitlement accrued. This is expected to continue in future periods. Accordingly, it is unlikely that existing accumulated entitlements will be used by employees and no liability for unused sick leave entitlements is recognised.

As sick leave is non-vesting, an expense is recognised for this leave as it is taken. Long Service Leave Under the Queensland Government's Long Service Leave Scheme, a levy is made on EWOQ to cover the cost of employees' long service leave. The levies are expensed in the period in which they are payable. Amounts paid to employees for long service leave are claimed from the scheme quarterly in arrears. No provision for long service leave is recognised in EWOQ's financial statements, the liability being held on a whole-of-government basis and reported in those financial statements pursuant to AASB 1049 Whole of Government and General Government Sector Financial Reporting.

Superannuation Employer superannuation contributions are paid to QSuper, the superannuation scheme for Queensland Government employees, at rates determined by the Treasurer on the advice of the State Actuary. Contributions are expensed in the period in which they are paid or payable. EWOQ's obligation is limited to its contribution to QSuper.

The QSuper scheme has defined benefit and defined contribution categories. The liability for defined benefits is held on a whole-of-government basis and reported in those financial statements pursuant to AASB 1049 Whole of Government and General Government Sector Financial Reporting.

ANNUAL REPORT 2014–2015 65

- 11 - Financial Statements

Office of the Energy and Water Ombudsman NotesOffice ofto theand Energy forming and part Water of the Ombudsman Financial Statements 2014–15NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2014-15

1. Summary of Significant Accounting Policies (contd) (n) Employee Benefits (contd) Key Executive Management Personnel and Remuneration Key executive management personnel and remuneration disclosures are made in accordance with the section 5 of the Financial Reporting Requirements for Queensland Government Agencies issued by Queensland Treasury. Refer to Note 5 for the disclosures on key executive management personnel and remuneration.

(o) Insurance EWOQ's non-current physical assets and other risks are insured through the Queensland Government Insurance Fund, premiums being paid on a risk assessment basis. In addition, EWOQ pays premiums to WorkCover Queensland in respect of its obligations for employee compensation.

(p) Taxation The Office of the Energy and Water Ombudsman is a state body as defined under the Income Tax Assessment Act 1936 and is exempt from Commonwealth taxation with the exception of Fringe Benefits Tax (FBT) and Goods and Services Tax (GST). FBT and GST are the only taxes accounted for by the Office of the Energy and Water Ombudsman. GST credits receivable from, and GST payable to the ATO, are recognised (refer to Note 9).

(q) Issuance of Financial Statements The financial statements are authorised for issue by the Energy and Water Ombudsman and the Manager, Corporate Services of the Office of the Energy and Water Ombudsman at the date of signing the Management Certificate. (r) Accounting Estimates and Judgements The preparation of financial statements necessarily requires the determination and use of certain critical accounting estimates, assumptions, and management judgements that have the potential to cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Such estimates, judgements and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in future periods as relevant.

Estimates and assumptions that have a potential significant effect are outlined in the following financial statement notes: Accrued Employee Benefits - Note 12

(s) Rounding and Comparatives Amounts included in the financial statements are in Australian dollars and have been rounded to the nearest $1,000 or, where that amount is $500 or less, to zero unless disclosure of the full amount is specifically required. Comparative information has been restated where necessary to be consistent with disclosures in the current reporting period.

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- 12 - Financial Statements

Office of the Energy and Water Ombudsman NotesOffice ofto theand Energy forming and part Water of the Ombudsman Financial Statements 2014–15NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2014-15

1. Summary of Significant Accounting Policies (contd) (t) Going Concern Under Section 65(1) of the Energy and Water Ombudsman Act 2006 performance of the Energy and Water Ombudsman's functions is funded by fees imposed on each scheme participant. EWOQ will continue to meet its commitments as and when they fall due.

(u) New and Revised Accounting Standards EWOQ did not voluntarily change any of its accounting policies during 2014-15. Australian Accounting Standard changes applicable for the first time for 2014-15 have had minimal effect on EWOQ's financial statements, as explained below. EWOQ is not permitted to early adopt a new or amended accounting standard ahead of the specified commencement date unless approval is obtained from Queensland Treasury. Consequently, EWOQ has not applied any Australian Accounting Standards and Interpretations that have been issued but are not yet effective. EWOQ applies standards and interpretations in accordance with their respective commencement dates.

At the date of authorisation of the financial report, the expected impacts of new or amended Australian Accounting Standards with future commencement dates are as set out below.

The following new and revised standards apply as from reporting periods beginning on or after 1 January 2014 –

AASB 9 Financial Instruments and AASB 2014-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014) will become effective from reporting periods beginning on or after 1 January 2018. The main impacts of these standards on EWOQ are that they will change the requirements for the classification, measurement, impairment and disclosures associated with EWOQ's financial assets. AASB 9 will introduce different criteria for whether financial assets can be measured at amortised cost or fair value.

EWOQ has reviewed the application of AASB 9 and does not expect that there will be any significant impact on valuations or disclosures.

From reporting periods beginning on or after 1 July 2015, EWOQ will need to comply with the requirements of AASB 124 Related Party Disclosures. This accounting standard requires a range of disclosures about the remuneration of key management personnel and transactions with related parties/entities. EWOQ already discloses information about the remuneration expenses for key management personnel (refer to note 5) in compliance with requirements from Queensland Treasury. Therefore, the most significant implications of AASB 124 for EWOQ's financial statements will be the disclosures to be made about transactions with related parties, including transactions with key management personnel or close members of their families. All other Australian Accounting Standards and interpretations with future commencement dates are either not applicable to EWOQ's activities, or have no material impact on the EWOQ.

ANNUAL REPORT 2014–2015 67

- 13 - Financial Statements

Office of the Energy and Water Ombudsman Note 2: User Charges and Fees NotesOffice ofto theand Energy forming and part Water of the Ombudsman Financial Statements Note 3: Other Revenues 2014–15NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2014-15 Note 4: Employee Expenses 2015 2014 $'000 $'000 2. User Charges and Fees User-pays fees 5,818 5,923 Membership fees 166 165

Total 5,984 6,088

3. Other Revenues Interest 56 50 Other revenue 2 1

Total 58 51

4. Employee Expenses Employee Benefits Wages and salaries 3,296 3,102 Employer superannuation contributions * 441 416 Long service leave levy * 76 72 Annual leave expenses * 350 322 Employee Related Expenses Payroll tax * 194 182 Workers' compensation premium * 18 17 Other employee expenses 56 66

Total 4,431 4,177

* Refer to Note 1(n). The number of employees as at 30 June including both full-time employees and part- time employees measured on a full-time equivalent basis is:

2015 2014 Number of employees: 40 41

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- 14 - Office of the Energy and Water Ombudsman NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2014-15 2014–15 Notes to and forming of part the Financial Statements of Office the Energy and Water Ombudsman 5. Key Management Personnel and Remuneration (a) Key Management Personnel The following details for key management personnel include those positions that had authority and responsibility for planning, directing and controlling the activities of EWOQ during 2014-15. Further information on these positions can be found in the body of the Annual Report under the section relating to Executive Management. Current Incumbents Position Responsibilities Contract classification and Date appointed to position (Date appointment authority resigned from position) Energy and Water The Energy and Water Ombudsman is responsible Statutory Appointment by Appointed 4 July 2011 Ombudsman for the efficient, effective and economic Governor in Council / Conditions administration of EWOQ. equivalent to SES3.5 General Manager General Manager Operations has delegated Public Service Act 2008/SO3. Appointed 1 July 2007 Operations accountability for leading the complaint investigation and dispute resolution functions of EWOQ.

Manager, Corporate The Manager Corporate Services manages the Public Service Act 2008/SO3. Appointed 26 March 2008 Services delivery of corporate services to EWOQ and ensures that all statutory reporting obligations of EWOQ are met. Manager, Policy and The Manager Policy and Research manages the Public Service Act 2008/AO8. Appointed 21 June 2010 Research provision of strategic advice and strategic development in relation to planning complex policies and emerging issues for EWOQ.

(b) Remuneration Expenses With the exception of the Energy and Water Ombudsman the remuneration policy for EWOQ's key management personnel is set by the Queensland Public Service Commission as provided for under thePublic Service Act 2008. The remuneration and other terms of employment of the Energy and Water Ombudsman are specified in the Governor in Council Appointment. Financial StatementsFinancial ANNUAL REPORT 2014–2015 For the 2014-15 year, remuneration of key management personnel increased by 2.2% in accordance with government policy.

The following disclosures focus on the expenses incurred by EWOQ during the respective reporting periods that is attributable to key management positions. Therefore, the amounts disclosed reflect expenses recognised in the Statement of Comprehensive Income.

-15 - 69 Note 5: Key Management Personnel and Remuneration Office of the Energy and Water Ombudsman NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2014-15 Financial StatementsFinancial 70 2014–15 Notes to and forming of part the Financial Statements of Office the Energy and Water Ombudsman 5. Key Management Personnel and Remuneration (contd)

energy+water ombudsman (b) Remuneration Expenses (contd) Remuneration packages for key management personnel comprises the following components:- Short term employee benefits which include: -salaries, allowances and leave entitlements earned and expensed for the entire year or for that part of the year during which the employee occupied the specified position. -non-monetary benefits - consisting of provision of vehicle together with fringe benefits tax applicable to the benefit. Long term employee expenses include amounts expensed in respect of long service leave entitlements earned. Post-employment expenses include amounts expensed in respect of employer superannuation obligations.

QUEENSLAND Termination benefits are not provided for within individual contracts of employment. Contracts of employment provide only for notice periods or payment in lieu of notice on termination, regardless of the reason for termination.

1 July 2014 - 30 June 2015 Position Short Term Employee Long Term Post- Termination Total (date resigned if applicable) Expenses Employee Expenses Employment Benefits Expenses Expenses Monetary Non-Monetary Expenses Benefits $'000 $'000 $'000 $'000 $'000 $'000 Energy and Water Ombudsman 190 23 17 24 0 254 General Manager Operations 141 0 3 17 0 161 Manager, Corporate Services 138 0 5 17 0 160 Manager, Policy and Research 121 0 3 14 0 138 Total Remuneration 590 23 28 72 0 713

-16 - Office of the Energy and Water Ombudsman NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2014-15 2014–15 Notes to and forming of part the Financial Statements of Office the Energy and Water Ombudsman 5. Key Management Personnel and Remuneration (contd) (b) Remuneration Expenses (contd) 1 July 2013 - 30 June 2014 Position Short Term Employee Long Term Post- Termination Total (date resigned if applicable) Expenses Employee Expenses Employment Benefits Expenses Expenses Monetary Non-Monetary Expenses Benefits $'000 $'000 $'000 $'000 $'000 $'000 Energy and Water Ombudsman 187 34 4 23 0 248 General Manager Operations 129 0 5 16 0 151 Manager, Corporate Services 124 0 3 16 0 143 Manager, Policy and Research 71 0 4 9 0 84 Total Remuneration 511 34 16 64 0 625

(c) Performance payments No performance payments were made to the Key Management of EWOQ. Financial StatementsFinancial ANNUAL REPORT 2014–2015

-17 - 71 Financial Statements

Office of the Energy and Water Ombudsman NotesOffice toof andthe Energyforming and part Water of the Ombudsman Financial Statements 2014–15NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2014-15

2015 2014 Note 6: Supplies and Services $'000 $'000 Note 7: Other Expenses 6. Supplies and Services Consultants and contractors 19 217 Travel 63 49 Property lease and rental 583 626 Promotion and entertainment 33 73 Printing, stationery and office supplies 41 63 Information technology 146 169 Communications 88 103 Corporate service charges 532 502 Sundries supplies and services 56 126

Total 1,561 1,928

7. Other Expenses Advisory Council fees 5 3 External audit fees 17 17 Other 2 3

Total 24 23

*** Total audit fees paid to the Queensland Audit Office relating to the 2014-15 financial statements are estimated to be $16,800 (2014: $17,000). There are no non-audit services included in this amount.

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- 18 - Financial Statements

Office of the Energy and Water Ombudsman NotesOffice ofto theand Energy forming and part Water of the Ombudsman Financial Statements 2014–15NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2014-15 Note 8: Cash and Cash Equivalents 2015 2014 $'000 $'000 Note 9: Receivables 8. Cash and Cash Equivalents Cash at bank 1,761 2,031

Total 1,761 2,031

Interest earned on cash held with the Commonwealth Bank earned 2.78% in 2015 (2.59% in 2014).

9. Receivables Trade debtors 414 573

414 573

GST receivable 13 21

Long service leave reimbursements 12 17 Interest receivable 3 3

Total 442 614

ANNUAL REPORT 2014–2015 73

- 19 - Financial Statements

Note 10: Plant and Equipment Office of the Energy and Water Ombudsman Note 11: Payables Notes to and forming part of the Financial Statements Note 12: Accrued Employee Benefits Office of the Energy and Water Ombudsman 2014–15NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2014-15

2015 2014 $'000 $'000 10. Plant and Equipment Plant and equipment: At cost Gross At cost plant and equipment 60 150 Less: Accumulated depreciation plant and equipment (44) (116)

Total 16 34

Plant and equipment is valued at cost in accordance with Queensland Treasury's Non- Current Asset Accounting Guidelines for the Queensland Public Sector .

Plant and Equipment Reconciliation Plant and equipment Total 2015 2014 2015 2014 $'000 $'000 $'000 $'000 Carrying amount at 1 July 34 6 34 6 Acquisitions - 31 - 31 Depreciation for period (18) (3) (18) (3)

Carrying amount at 30 June 16 34 16 34

11. Payables Trade creditors 969 830 Accrued expenses 82 72

Total 1,051 902

12. Accrued Employee Benefits Current Wages Payable 26 12 Annual Leave 345 325 Long service leave levy payable 19 19

Total 390 356

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- 20 - Financial Statements

Office of the Energy and Water Ombudsman NotesOffice ofto theand Energy forming and part Water of the Ombudsman Financial Statements 2014–15 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2014-15

2015 2014 $'000 $'000

13. Reconciliation of Operating Surplus to Net Cash from (used in) Operating Activities Operating surplus 8 8 Note 13: Reconciliation of Operating Surplus to Net Cash Depreciation expense 18 3 from (used in) Operating Activities Changes in assets and liabilities: Note 14: Commitments for Expenditure (Increase)/decrease in receivables 172 (303) (Increase)/decrease in prepayments (17) 13 Increase/(decrease) in accounts payable 149 (75) Increase/(decrease) in accrued employee benefits 34 28 Increase/(decrease) in unearned revenue (634) 796

Net cash provided by (used in) operating activities (270) 470

14. Commitments for Expenditure (a) Non-Cancellable Operating Lease Commitments under operating leases at reporting date are inclusive of anticipated GST and are payable as follows: Not later than one year 445 593 Later than one year and not later than five years 735 1,140 Later than five years --

Total 1,180 1,733

Operating leases are entered into as a means of acquiring access to office accommodation. Lease payments are generally fixed, but with inflation escalation clauses on which contingent rentals are determined.

ANNUAL REPORT 2014–2015 75

- 21 - Financial Statements

Office of the Energy and Water Ombudsman Note 15: Contingencies NotesOffice ofto theand Energy forming and part Water of the Ombudsman Financial Statements Note 16: Financial Instruments 2014–15NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2014-15

15. Contingencies There were no known contingent assets or liabilities at 30 June 2015.

16. Financial Instruments (a) Categorisation of Financial Instruments EWOQ has the following categories of financial assets and financial liabilities:

2015 2014 Category Note $'000 $'000

Financial Assets Cash and cash equivalents 8 1,761 2,031 Receivables 9 442 614

Total 2,203 2,645

Financial Liabilities Financial liabilities measured at amortised costs: Payables 11 1,051 902

Total 1,051 902

(b) Financial Risk Management EWOQ's activities expose it to a variety of financial risks - interest rate risk, credit risk, liquidity risk and market risk. Financial risk management is implemented pursuant to Government and EWOQ policy. These policies focus on the unpredictability of financial markets and seek to minimise potential adverse effects on the financial performance of EWOQ.

All financial risk is managed by Executive Management under policies approved by EWOQ. EWOQ provides written principles for overall risk management, as well as policies covering specific areas. EWOQ measures risk exposure using a variety of methods as follows -

Risk Exposure Measurement method Credit Risk Ageing analysis, earnings at risk Liquidity Risk Sensitivity analysis Market Risk Interest rate sensitivity analysis

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- 22 - Financial Statements

Office of the Energy and Water Ombudsman NotesOffice ofto theand Energy forming and part Water of the Ombudsman Financial Statements 2014–15NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2014-15

16. Financial Instruments (contd) (c) Credit Risk Exposure Credit risk exposure refers to the situation where EWOQ may incur a financial loss as a result of another party to a financial instrument failing to discharge their obligation. The maximum exposure to credit risk at balance date in relation to each class of recognised financial assets is the gross carrying amount of those assets inclusive of any provisions for impairment.

EWOQ's maximum exposure to credit risk is the carrying amount of its Financial Assets as set out in Note 16(a).

No collateral is held as security and no credit enhancements relate to financial assets held by EWOQ. EWOQ manages credit risk through the use of management reports. This strategy aims to reduce the exposure to credit default by ensuring that EWOQ invests in secure assets and monitors all funds owed on a timely basis. Exposure to credit risk is monitored on an ongoing basis. No financial assets and financial liabilities have been offset and presented net in the Statement of Financial Position.

The allowance for impairment reflects the occurrence of loss events. The most readily identifiable loss event is where a debtor is overdue in paying a debt to EWOQ, according to the due date (normally terms of 14 days). Economic changes impacting EWOQ's debtors and relevant industry data, also form part of EWOQ's documented risk analysis.

No financial assets have had their terms renegotiated so as to prevent them from being past due or impaired, and are stated at the carrying amounts as indicated.

ANNUAL REPORT 2014–2015 77

- 23 - Financial Statements

Office of the Energy and Water Ombudsman NotesOffice ofto theand Energy forming and part Water of the Ombudsman Financial Statements 2014–15NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2014-15

16. Financial Instruments (contd) (c) Credit Risk Exposure (contd) Aging of past due but not impaired financial assets are disclosed in the following tables: 2015 Financial Assets Past Due But Not Impaired Overdue Less More than 30 30-60 61-90 than 90 Note Days Days Days Days Total $'000 $'000 $'000 $'000 $'000 Receivables 9 442 - - - 442

Total 442 - - - 442

2014 Financial Assets Past Due But Not Impaired Overdue Less More Note than 30 30-60 61-90 than 90 Days Days Days Days Total $'000 $'000 $'000 $'000 $'000 Receivables 9 614 - - - 614

Total 614 - - - 614

(d) Liquidity Risk Liquidity risk refers to the situation where EWOQ may encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset.

EWOQ is exposed to liquidity risk in respect of its payables. EWOQ manages liquidity risk through the use of management reports. This strategy aims to reduce the exposure to liquidity risk by ensuring EWOQ has sufficient funds available to meet employee and supplier obligations as they fall due. This is achieved by ensuring that minimum levels of cash are held within the various bank accounts so as to match the expected duration of the various employee and supplier liabilities.

All of EWOQ's financial liabilities as per note 16(a) are due for payment within 1 year.

(e) Market Risk EWOQ does not trade in foreign currency and is not materially exposed to commodity price changes. EWOQ is exposed to interest rate risk through its cash deposited in interest bearing accounts. EWOQ does not undertake any hedging in relation to interest risk and manages its risk as per the liquidity risk management strategy.

78 energy+water ombudsman QUEENSLAND - 24 - Financial Statements

Office of the Energy and Water Ombudsman NotesOffice ofto theand Energy forming and part Water of the Ombudsman Financial Statements 2014–15NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2014-15

16. Financial Instruments (contd) (f) Interest Rate Sensitivity Analysis No sensitivity analysis has been conducted on the basis that the only Financial Instrument held by EWOQ that would be impacted by a change in interest rates is cash, and a +/-1% change would result in an immaterial impact on profit for the year.

(g) Fair Value The fair value of trade receivables and payables is assumed to approximate the value of the original transaction, less any allowance for impairment.

17. Events Occurring After Balance Date No event has occurred after balance date that has a material effect on these financial statements.

ANNUAL REPORT 2014–2015 79 - 25 - Certi cate of the Of ce of the EnergyCERTIFICATE and Water OF THE OFFICE Ombudsman OF THE ENERGY AND WATER OMBUDSMAN

These general purpose financial statements have been prepared pursuant to s.62(1) of the Financial Accountability Act 2009 (the Act), section 43 of the Financial and Performance Management Standard 2009 and other prescribed requirements. In accordance with s.62(1)(b) of the Act we certify that in our opinion:

(i) the prescribed requirements for establishing and keeping the accounts have been complied with in all material respects; and

(ii) the financial statements have been drawn up to present a true and fair view, in accordance with prescribed accounting standards, of the transactions of the Office of the Energy and Water Ombudsman for the financial year ended 30 June 2015 and of the financial position of the office at the end of that year; and

(iii) these assertions are based on an appropriate system of internal controls and risk management processes being effective, in all material respects, with respect to financial reporting throughout the reporting period.

Lyn Stevens Forbes Smith Manager, Corporate Services Energy and Water Ombudsman Office of the Energy and Water Ombudsman Office of the Energy and Water Ombudsman

Date: Date:

80 energy+water ombudsman QUEENSLAND

- 26 - Independent Auditor’s Report To the Office of the Energy and Water Ombudsman

ANNUAL REPORT 2014–2015 81 Independent Auditor’s Report To the Office of the Energy and Water Ombudsman

82 energy+water ombudsman QUEENSLAND Appendix 1: Data

Table 22: Five year closed cases 2010–11 2011–12 2012–13 2013–14 2014–15 Electricity 11,013 11,396 12,107 12,524 9,539 Gas 973 1,142 1,132 1,028 803 Water 607 911 614 590 569

Table 23: Five year customer profile 2010–11 2011–12 2012–13 2013–14 2014–15 Residential 12,269 13041 13,470 13,683 10,500 Small business 418 470 616 584 541 Government 15 11 10 15 8 Total 12,702 13,522 14,096 14,282 11,049

Table 24: Closed case types 2010–11 2011–12 2012–13 2013–14 2014–15 General Enquiry 1,084 1,242 1,243 1,219 946 Referral 1,408 1,175 2,348 2,256 1752 Refer back 3,302 3,636 4,011 4,041 3868 Refer to Higher Level 4,819 5,298 4,616 4,410 2879 Level 1 Investigation 1,648 1,253 1,352 1,802 1037 Level 2 Investigation 409 505 390 421 322 Level 3 Investigation 32 413 136 133 234 Final Order 0 0 0 0 11

Table 25: Five year contact method 2010–11 2011–12 2012–13 2013–14 2014–15 Telephone 10,135 9,919 10,269 10,268 8,024 Website 1,194 1,880 1,928 2,467 2,001 Email 869 1,323 1,488 1,258 820 Other* 504 400 411 289 204

*Other includes cases received by fax, letter or in person Table 26: Five year received and closed by year 2010–11 2011–12 2012–13 2013–14 2014–15 Received 12,672 13,496 14,266 14,081 11,133 Closed 12,702 13,522 14,096 14,282 11,049

Table 27: Received and closed cases by month 2014–2015 Received Closed July 2014 1,098 1,030 August 2014 953 947 September 2014 1,022 983 October 2014 1,110 1,112 November 2014 949 915 December 2014 728 783 January 2015 806 784 February 2015 905 887 March 2015 913 1,011 April 2015 843 837 May 2015 909 880 June 2015 897 880 Total 11,133 11,049

ANNUAL REPORT 2014–2015 83 Appendix 2: Glossary

Billing a case issue relating to high/disputed bills, delays, Refer back to supplier customer has not contacted their errors, estimated accounts, fees and charges, rebates/ supplier first to try and resolve the issue and EWOQ concessions, tariff, meters, refunds, etc. refers the complaint back to the supplier. EWOQ cannot investigate a complaint unless the supplier has had an Case any contact a customer has with EWOQ ie general opportunity to resolve the issue. enquiry, refer back to supplier, Referral to Higher Level, investigation, or referral to other organisation. Referral to Higher Level (RHL) EWOQ can refer a customer’s complaint to a higher level of authority at their Complaints all cases that are billed to a scheme supplier before starting an investigation. participant ie refer back to supplier, Referral to Higher Level and investigation. Referral to other organisations if a case is outside EWOQ jurisdiction we can refer it to an organisation we Credit a case issue relating to payment difficulties, have a Memorandum of Understanding with. This includes disconnection, bad debt etc. the Queensland energy and water regulator, Office of Fair Customer service a case issue relating to a scheme Trading, Queensland Competition Authority, Queensland participant’s failure to inform/respond, incorrect advice, Ombudsman and the Australian Energy Regulator. poor attitude, privacy issues etc. Scheme participant energy distributors and retailers EWOQ Energy and Water Ombudsman Queensland operating in Queensland and water distributor-retailers in south east Queensland, which must join the EWOQ General enquiry a customer has a query about electricity, scheme. gas or water that is not a complaint. Small customer a small customer is a residential or small Investigation EWOQ investigates a complaint and business customer who uses less than 100 megawatt facilitates an outcome that is fair. Investigations can be hours of electricity per year, less than one terajoule of level 1, 2 or 3 depending on the time taken to resolve the gas per year, and all residential water customers in south issue. east Queensland or small businesses who use less than Land a case issue relating to the impact of 100 kilolitres of water per year. network assets, network maintenance, vegetation Supply a case issue relating to the quality of energy management etc. supply, damage/loss, outages, sewerage overflow etc. Marketing a case issue relating to conduct by energy Transfer a case issue relating to errors in billing/transfer of marketers, misleading information, pressure, non-account account due to switching energy retailers, contract terms, holder signed up etc. delay in transfer, site ownership etc. Provision a case issue relating to problems with new or existing connections etc.

84 energy+water ombudsman QUEENSLAND Appendix 3: Scheme participants

All licensed energy suppliers and water distributor-retailers in Queensland who supply small customers must become scheme participants. EWOQ is fully funded by an industry levy imposed on the scheme participants.

Scheme participant Product type Service type AGL Sales (Queensland Electricity) Pty Ltd Electricity Retailer AGL Sales (Queensland) Pty Ltd Gas Retailer Allgas Energy Pty Ltd Gas Distributor Australian Gas Networks Limited Gas Distributor Click Energy Pty Ltd Electricity Retailer Diamond Energy Pty Ltd Electricity Retailer Dodo Power & Gas Pty Ltd Electricity Retailer ENERGEX Ltd Electricity Distributor EnergyAustralia Pty Ltd Electricity Retailer Envestra Limited Gas Distributor Ergon Energy Corporation Ltd Electricity Distributor Ergon Energy Qld Pty Ltd Electricity Retailer Essential Energy Electricity Distributor Gold Coast City Council Water Distributor and Retailer Logan City Council Water Distributor and Retailer Lumo Energy Electricity Retailer Maranoa Regional Council Gas Distributor and Retailer Momentum Energy Pty Ltd Electricity Retailer Origin Energy Electricity Ltd Electricity Retailer Origin Energy Retail Ltd Gas Retailer Powerdirect Pty Ltd Electricity Retailer QEnergy Ltd Electricity Retailer Queensland Urban Utilities Water Distributor and Retailer Redland City Council Water Distributor and Retailer Red Energy Electricity Retailer Sanctuary Energy Pty Ltd Electricity Retailer Simply Energy Electricity Retailer Unitywater Water Distributor and Retailer Western Downs Regional Council Gas Distributor and Retailer

ANNUAL REPORT 2014–2015 85 Appendix 4: Compliance checklist

The compliance checklist outlines the governance, performance, reporting and other specific requirements for EWOQ annual reports. It includes references to the relevant sections.

Annual report Summary of requirement Basis for requirement reference Letter of compliance Letter of compliance from the statutory body to the Minister ARRs – section 8 i Accessibility Table of contents ARRs – section 10.1 i Glossary ARRs – section 10.1 84 Public availability ARRs – section 10.2 i Interpreter service statement Queensland Government Language i Service s Policy ARRs – section 10.3 Copyright notice Copyright Act 1968 i ARRs – section 10.4 Information licensing ARRs – section 10.5 n/a General information Introductory information ARRs – section 11.1 4 Agency role and main functions ARRs – section 11.2 2 Operating environment ARRs – section 11.3 8 Machinery of government changes ARRs – section 11.4 n/a Non-financial Government’s objectives for the community ARRs – section 12.1 3 performance Other whole-of-government plans/specific initiatives ARRs – section 12.2 n/a Agency objectives and performance indicators ARRs – section 12.3 16 Agency service areas and service standards ARRs – section 12.4 12 Financial Summary of financial performance ARRs – section 13.1 53 performance Governance – Organisational structure ARRs – section 14.1 48 management and Executive management ARRs – section 14.2 49 structure Government bodies (statutory bodies and other entities) ARRs – section 14.4 3 Public Sector Ethics Act 1994 Public Sector Ethics Act 1994 50 (section 23 and Schedule) ARRs – section 14.5 Governance – risk Risk management ARRs – section 15.1 51 management and External scrutiny ARRs – section 15.2 12 accountability Audit committee ARRs – section 15.3 50 Internal audit ARRs – section 15.4 n/a Information systems and recordkeeping ARRs – section 15.6 51 Governance – Workforce planning and performance ARRs – section 16.1 52 human resources Early retirement, redundancy and retrenchment Directive No. 11/12 Early Retirement, 52 Redundancy and Retrenchment ARRs – section 16.2 Open Data Consultancies ARRs – section 17 50 ARRs – section 34.1 Overseas travel ARRs – section 17 50 ARRs – section 34.2 Queensland Language Services Policy ARRs – section 17 50 ARRs – section 34.3 Government bodies ARRs – section 17 48 ARRs – section 34.4 Financial statements Certification of financial statements FAA – section 62 80 FPMS – sections 42, 43 and 50 ARRs – section 18.1 Independent Auditors Report FAA – section 62 81 FPMS – section 50 ARRs – section 18.2 Remuneration disclosures Financial Reporting Requirements for 70 Queensland Government Agencies ARRs – section 18.3

FAA Financial Accountability Act 2009 FPMS Financial and Performance Management Standard 2009 ARRs Annual report requirements for Queensland Government agencies

86 energy+water ombudsman QUEENSLAND Figures and tables index

Figures Figure 1: Closed case types ������������������������������������������������������������������������������������������������������������������������������������������������ 14 Figure 2: How customers contacted EWOQ ���������������������������������������������������������������������������������������������������������������������� 14 Figure 3: Cases received and closed by year ���������������������������������������������������������������������������������������������������������������������� 15 Figure 4: Cases received and closed 2014–2015 by month ������������������������������������������������������������������������������������������������ 15 Figure 5: Electricity retailer performance ���������������������������������������������������������������������������������������������������������������������������� 31 Figure 6: User pays fee breakdown 2014–15 ���������������������������������������������������������������������������������������������������������������������� 54 Figure 7: Assets as at 30 June 2015 ����������������������������������������������������������������������������������������������������������������������������������� 54 Figure 8: Liabilities as at 30 June 2015 ������������������������������������������������������������������������������������������������������������������������������� 54

Tables Table 1: EWOQ performance targets – time taken to resolve complaints �������������������������������������������������������������������������� 12 Table 2: Cases referred to other organisations �������������������������������������������������������������������������������������������������������������������� 12 Table 3: Performance measures and achievements ������������������������������������������������������������������������������������������������������������ 16 Table 4: Systemic issues ����������������������������������������������������������������������������������������������������������������������������������������������������� 18 Table 5: Closed complaints by primary issue ���������������������������������������������������������������������������������������������������������������������� 21 Table 6: Closed electricity complaints by primary issue and case type ������������������������������������������������������������������������������ 22 Table 7: Electricity investigations by primary and secondary issues ����������������������������������������������������������������������������������� 24 Table 8: Closed electricity retailer complaints by primary issue ����������������������������������������������������������������������������������������� 26 Table 9: Closed electricity complaints by retailer ���������������������������������������������������������������������������������������������������������������� 28 Table 10: Closed electricity distributor complaints by primary issue ����������������������������������������������������������������������������������� 32 Table 11: Closed electricity complaints by distributor ��������������������������������������������������������������������������������������������������������� 32 Table 12: Closed gas complaints by primary issue and case type �������������������������������������������������������������������������������������� 34 Table 13: Closed gas retailer complaints by primary issue �������������������������������������������������������������������������������������������������� 36 Table 14: Closed gas complaints by retailer ������������������������������������������������������������������������������������������������������������������������ 37 Table 15: Closed gas distributor complaints by primary issue �������������������������������������������������������������������������������������������� 38 Table 16: Closed gas complaints by distributor ������������������������������������������������������������������������������������������������������������������� 38 Table 17: Closed water complaints by primary issue and case type ����������������������������������������������������������������������������������� 40 Table 18: Closed water retailer complaints by primary issue ���������������������������������������������������������������������������������������������� 42 Table 19: Closed water complaints by retailer ��������������������������������������������������������������������������������������������������������������������� 43 Table 20: Closed water distributor complaints by primary issue ����������������������������������������������������������������������������������������� 44 Table 21: Closed water complaints by distributor ��������������������������������������������������������������������������������������������������������������� 45 Table 22: Five year closed cases ����������������������������������������������������������������������������������������������������������������������������������������� 83 Table 23: Five year customer profile ����������������������������������������������������������������������������������������������������������������������������������� 83 Table 24: Closed case types ������������������������������������������������������������������������������������������������������������������������������������������������ 83 Table 25: Five year contact method ������������������������������������������������������������������������������������������������������������������������������������ 83 Table 26: Five year received and closed by year ����������������������������������������������������������������������������������������������������������������� 83 Table 27: Received and closed cases by month 2014–2015 ����������������������������������������������������������������������������������������������� 83

ANNUAL REPORT 2014–2015 87 Index

Advisory Council Chair’s message ������������������������������������� 6 Independent review ��������������������������������������������������������� 12 Advisory Council to the Energy and Water Ombudsman ��� 8 Indigenous outreach ��������������������������������������������������������� 47 Availability and access ��������������������������������������������������������� i Information and recordkeeping ���������������������������������������� 51 Brochures ������������������������������������������������������������������������� 47 Information mail outs ������������������������������������������������������� 47 Business continuity management ������������������������������������ 51 Jurisdiction ����������������������������������������������������������������������� 10 Charter of service ������������������������������������������������������������� 48 Learning and development ����������������������������������������������� 52 Code of conduct ��������������������������������������������������������������� 50 Media ������������������������������������������������������������������������������� 46 Communicating with staff ������������������������������������������������ 52 Mission ������������������������������������������������������������������������������� 2 Communication objective ���������������������������������������������������� i Online ������������������������������������������������������������������������������� 47 Community involvement �������������������������������������������������� 52 Organisational structure ��������������������������������������������������� 48 Complaint stages ��������������������������������������������������������������11 Our role ������������������������������������������������������������������������������ 3 Compliance letter ���������������������������������������������������������������� i Our structure ���������������������������������������������������������������������� 3 Contact method ��������������������������������������������������������������� 14 Performance against service standards ��������������������������� 12 Corporate governance ������������������������������������������������������ 49 Performance against strategic plan ���������������������������������� 16 Customer location ������������������������������������������������������������ 13 Quality assurance ������������������������������������������������������������� 10 Electricity distributors ������������������������������������������������������� 32 Regional Queensland ������������������������������������������������������� 46 Electricity retailers ������������������������������������������������������������ 26 Right to information ���������������������������������������������������������� 51 Electricity �������������������������������������������������������������������������� 22 Risk management ������������������������������������������������������������ 51 Employee relations ����������������������������������������������������������� 50 Scheme performance ������������������������������������������������������� 12 Energy and Water Ombudsman’s message ����������������������� 4 Stakeholder engagement ������������������������������������������������� 46 Ethics �������������������������������������������������������������������������������� 50 Strategic direction �������������������������������������������������������������� 3 Events ������������������������������������������������������������������������������ 46 Strategic planning ������������������������������������������������������������� 50 EWOQ Update ����������������������������������������������������������������� 47 Submissions ��������������������������������������������������������������������� 20 EWOQ’s priorities ��������������������������������������������������������������� 2 Systemic issues ��������������������������������������������������������������� 18 Financial statements �������������������������������������������������������� 55 The figures ����������������������������������������������������������������������� 21 Financial summary ����������������������������������������������������������� 53 Vision ���������������������������������������������������������������������������������� 2 Future ��������������������������������������������������������������������������������� 3 Water distributors ������������������������������������������������������������� 44 Gas distributors ���������������������������������������������������������������� 38 Water retailers ������������������������������������������������������������������ 42 Gas retailers ��������������������������������������������������������������������� 36 Water �������������������������������������������������������������������������������� 40 Gas ����������������������������������������������������������������������������������� 34 Work/life balance �������������������������������������������������������������� 52 Highlights of 2014–15 ��������������������������������������������������������� 1 Workforce profile �������������������������������������������������������������� 52

88 energy+water ombudsman QUEENSLAND

Contents

Letter of Compliance ���������������������������������������������������������������i About this report ���������������������������������������������������������������������i Highlights 2014–15 �����������������������������������������������������������������1 EWOQ’s priorities �������������������������������������������������������������������2 Energy and Water Ombudsman’s Message ���������������������������4 Top 5 monetary outcomes �����������������������������������������������������5 Advisory Council Chair’s Message �����������������������������������������6 Who contacted EWOQ? ���������������������������������������������������������7 Advisory Council to the Energy and Water Ombudsman �������8 Time taken to resolve complaints ������������������������������������������9 Dispute resolution process ��������������������������������������������������10 Scheme performance �����������������������������������������������������������12 Systemic issues �������������������������������������������������������������������18 Contributing to public policy ������������������������������������������������ 20 The figures and the issues �������������������������������������������������� 21 Electricity ���������������������������������������������������������������������������� 22 Electricity retailers ���������������������������������������������������������� 26 Electricity distributors ����������������������������������������������������� 32 Gas �������������������������������������������������������������������������������������� 34 Gas retailers �������������������������������������������������������������������� 36 Gas distributors ��������������������������������������������������������������� 38 Water ���������������������������������������������������������������������������������� 40 Water retailers ���������������������������������������������������������������� 42 Water distributors ����������������������������������������������������������� 44 Connecting with stakeholders and the community ������������ 46 Our organisation ������������������������������������������������������������������ 48 Our people ��������������������������������������������������������������������������� 52 Financial Summary �������������������������������������������������������������� 53 Financial Statements ����������������������������������������������������������� 55 Certificate of the Office of the Energy and Water Ombudsman ������������������������������������������������������������� 80 Independent Auditor’s Report to the Office of the Energy and Water Ombudsman ������������������������������� 81 Appendix 1: Data ����������������������������������������������������������������� 83 Appendix 2: Glossary ���������������������������������������������������������� 84 Appendix 3: Scheme participants ���������������������������������������� 85 Appendix 4: Compliance checklist ��������������������������������������� 86 Figures and tables index ����������������������������������������������������� 87 Index ������������������������������������������������������������������������������������ 88

Figures Figure 1: Closed case types �������������������������������������������������14 Figure 2: How customers contacted EWOQ �����������������������14 Figure 3: Cases received and closed by year �����������������������15 Figure 4: Cases received and closed 2014–2015 by month �15 Figure 5: Electricity retailer performance ���������������������������� 31 Figure 6: User pays fee breakdown 2014–15 ���������������������� 54 Figure 7: Assets as at 30 June 2015 ����������������������������������� 54 Figure 8: Liabilities as at 30 June 2015 ������������������������������� 54