ENERGY CHARTER DISCLOSURE REPORT 2019-20 Contents Referencing guide Chairman and CEO message 1 EQL Energy Limited The term Energy Queensland is Our customers and communities 2 used throughout the report and acronym EQL is used to refer to Our scorecard 3 work across the Group) Our performance 4 EEN-EX Network and COVID-19 – Our response 4 EER Ergon Energy Retail Principle 1 – We will put customers at the centre of our business and YKA Yurika the energy system 4 The points relevant to the Independent Principle 2 – We will improve energy affordability for customers 6 Accountability Panel Recommendations Principle 3 – We will provide energy safely, sustainably and reliably 7 2019 are referenced with a R#. A copy of those recommendations is available on the Principle 4 – We will improve the customer experience 8 Energy Charter website. Principle 5 – We will support customers facing vulnerable circumstances 10

About this report

This report covers the Energy Queensland Group’s (the Group’s) Energy Charter disclosure from July 2019 to June 2020. It reports the contribution of Energex Limited, Ergon Energy Corporation Limited, Ergon Energy Queensland Pty Ltd, and Yurika Pty Ltd. This Energy Charter Disclosure Report is on our website at www.energyq.com.au/publications. We welcome feedback to help us improve our reporting. Comments can be directed to [email protected]

Chairman and CEO message In this disclosure report, we share how we’re working on delivering better outcomes for the many different customer segments and communities we serve.

In addition to direct customer feedback, much of into better price outcomes and we laid the The collation of this Energy Charter Disclosure this journey has been guided by insights from our foundation for new tariff choices Report is central to remaining relevant, and Customer Council, customer advocates and our • we had to balance the impact of safety- delivering valued products and services to all our fellow Energy Charter signatories. We thank them driven investment on reliability performance customers and communities into the future, and for working with us and truly challenging us to while formalising our commitment to enable to ensuring no one is left behind. do better. the transition of the Queensland electricity We look forward to delivering ‘better together’, Focus areas from the year include: industry to a low carbon future in line with our through the Energy Charter, in the coming year. customers’ expectations • we rose quickly to the challenges brought by Yours sincerely the COVID-19 pandemic, with both a customer • we advanced both our Retail and Network and operational response online customer portals, making it easier for our customers to engage with us. • we focused on our business culture, with new tools and measures, improved our internal For the first time we’ve assessed ourselves from customer advocacy and developed a shared- a maturity perspective against each of the Energy Phil Garling language around our customers’ diverse needs Charter’s five principles.This was a valuable process, Chairman • affordability remained core to our revised driving healthy debate on where we needed to focus Regulatory Proposals and Tariff Structure strategically to meet future customer expectations, Statements, which have now translated and helping us understand more deeply what ‘good’ Rod Duke looks like from a customer perspective. Chief Executive Officer

1 2019-20 Energy Charter Disclosure Report Customer Council message Customer Council Members Dale Holliss Bundaberg Regional Wendy Miller Queensland Council of As the Customer Council for Energy We believe that Energy Queensland Irrigators Group Social Service Queensland, we acknowledge now better understands their Gabriel O’Keeffe Chamber of Commerce Luke Reade Energetic Communities and Industry Queensland and appreciate the effort that customers’ diverse expectations Pamela City of Gold Coast Georgina Davis Queensland Farmers has been made to engage with and bring this focus to improving Bessette-Guard Council Federation Council members in developing their service delivery. We commit Robyn Robinson Council on the Ageing Elly Queenslanders with this disclosure statement, and for to continuing to work with Energy Queensland Desmarchelier Disability Network (new member) incorporating our views on both the Queensland on realising these Michael Local Government Colin Coverdale Small Business Association progress made against the principles improvements and the promises Fullelove Association Queensland of of the Energy Charter over the past of the Energy Charter for the Anthony King Master Electricians Judene Andrews UnitingCare Queensland year, and Energy Queensland’s communities and customers that we Andrew Barger Queensland Resources Martin Zaltron Urban Development inaugural maturity assessment. represent. Council Institute of Australia

Our customers and communities Energy Queensland is Queensland’s 100% owned group of Our stakeholders electricity distribution, retail and energy services businesses. This report focuses on our end-user customers range of products and services delivered through and the communities we serve from the Tweed our Yurika and other market brands, both in River to Torres Strait and from across Queensland and nationally. to Birdsville. This includes circa. 2.3 million Government Industry To help us understand our end-user customers, connected customers, 738,000 regional retail Regulators we have a needs-based segmentation framework customers, 25 large-scale solar farms and that maps our residential and business customers 550,000 small-scale solar energy systems. to three macro-needs – connection, control and We deliver electricity across Queensland through progression (see Case Study 2). End-user Community our ‘poles and wires’ businesses Energex and Customer s Industry To meet the needs of our end-user customers (the Stakeholders Partners Ergon Energy Network, with 33 stand-alone focus of this report), we work closely with the power stations for our isolated communities. Our and industry regulators retailer, Ergon Energy Retail, sells electricity to and invest in building positive relationships with customers throughout regional Queensland. These Our People community stakeholders, industry partners and essential service activities are also supported by a our people (employees).

GENERATION TRANSMISSION DISTRIBUTION RETAILERS END USE CUSTOMERS A range of energy The transmission network The ‘poles and wires’ The electricity is sold by Queensland has resources – coal, gas, transports high voltage then supply the electricity the retailers, who provide 2.3 million homes and hydro, solar, wind and electricity from the at a lower voltage to a range of other services. businesses state-wide. biomass – is used to major generators over Queensland’s homes and They buy the electricity 30% of houses now have generate the state’s long distances to the businesses. from the generators. rooftop solar – that is now electricity. Queensland distribution network being exported across the is also connected to and high-use industrial distribution network. interstate supplies. customers. ~1~ Business solar and utility Ill Tenergex scale renewables are also Part of Energy Queensland PattofEnergyQueensland distributed across the ...... state, and growing rapidly.

PattofEnergyQueensland INDUSTRIAL SERVICE PROVIDERS CUSTOMERS Infrastructure and alternative or Some industrial sites are distributed energy providers, supplied directly from the metering services, electrical yuq1

2019-20 Energy Charter Disclosure Report 2 Our scorecard

Our scorecard links our high-level customer and community metrics to the Energy Charter Maturity Assessment Framework. The targets shown form part of our annual performance agreement with our shareholding Ministers as a Government Owned Corporation.

Key Performance Measures Energy Charter Maturity Assessment Metric and Target Result Elementary Emerging Evolved Empowered Exemplary

We will put customers at We measure the customer Energy Queensland Customer 6.9   the centre of our business mindset in our organisational Enablement Index1: and the energy system culture, by how enabled employees feel to deliver for our Target ≥5.6 customers

We will improve energy We track price and affordability Household concern about ability  affordability for customers perceptions (this year’s to pay the bill – improvement prior to the (a) % moderate-high concern (a) 57%  economic impact of COVID-19) (b) % low bill concern (b) 42% 

We outline tariff trends in our Retail price changes July 2020: 5.3%  Annual Report Residential 5.0%  Small Business

We will provide energy Safety: We have a suite of Community safety incidents 323  N/A N/A safely, sustainably and community and workplace safety involving contact with our 24%  reliably measures detailed in our Annual networks Report

Sustainability: We’re New solar connections to our 67,594  playing an important role in networks 28%  Queensland’s transition to a low- carbon energy future for more Energy Queensland controllable 131,420

see our Annual Report direct emissions tCO2-e 3% 

Reliability: Our networks’ Household satisfaction with 76%   performance across the state network reliability3 for our outage frequency and duration standards are detailed 12 power outage standards: 83%  in our Annual Report Target 100%

We will improve the Customer outcomes and Energy Queensland Customer 7.1   customer experience communication: We measure Index1: service satisfaction through our Voice of the Customer Target ≥6.7 program (for more on our service standards see our Annual Report)

We track and analyse complaints Complaints per 100 customers:  to refine our service standards Retail 0.04  Network 0.02 

We will support customers We track the success of our Retail disconnection for non- 9,350  facing vulnerable hardship programs with a range payment4 12%  circumstances of measures reported to our regulators (for more information see our Annual Report)

1. Voice of the Customer program. 2. Queensland Household Energy Survey: Question. Indicate on the scale (0-10), how concerned are you about your ability to pay your electricity bill? (Low concern % based on 0-5. High concern (8-10). Please note, survey responses were from November 2019 pre COVID-19. 3. Energy Consumers Australia Energy Consumers Sentiment Survey June 2020. Question: How satisfied are you with the number of times you’ve had loss of power, blackouts or other faults with your electricity supply in the past 6 months? Scale 0-10, Positive 7-10. Result 76% is above national average in this benchmarking research. 4. Result for first three quarters, down 12% compared to same quarters in 2018-19, prior to stopping disconnections for non-payment as part of our COVID-19 response. Others: internal surveys and operational data.

3 2019-20 Energy Charter Disclosure Report Principle 1 – Our performance We will put customers at This year we have assessed our performance as a Group of the centre of our business companies against the Energy Charter Maturity Model. and the energy system

In doing so, we’ve considered the varying degrees • We recognised the overall impact to While we have implemented several initiatives of maturity of our portfolio of brands against communities and community organisations. to drive a customer-centric culture through our the five Energy Charter principles and assessed 2018-20 Customer Experience Roadmap, these ourselves accordingly. Our Response are yet to be reflected in consistent customer • Across Energy Queensland, we stopped outcomes. As a result, we’ve assessed ourselves We also refer to the Independent Accountability disconnections for non-payment, fast-tracked as emerging against Principle 1. Foundational Panel recommendations from last year, noting the Queensland Government’s Utility Bill Relief to progressing our maturity in this area was some themes are being addressed through the Assistance package, a $200 relief payment for the elevation of the customer and community Energy Charter #BetterTogether initiatives that households and $500 for small business, and strategies to the Executive Committee level in late have been reported on separately. In addition, promoted payment and assistance options for 2019.R16 we have taken the opportunity to highlight the customers experiencing financial stress. impact COVID-19 had on our customers and our Our Customer Index, which measures our • Ergon Energy Retail expanded its Credit Policy response. customers’ experience out of ten, increased criteria, empowered and upskilled additional significantly from 6.71 in 2018-19 to 7.11 customer service representatives to support COVID-19 – our response in 2019-20. Customer feedback continues to hardship, brought forward improvement While the safety of our customers and be monitored daily and reported regularly to initiatives and reminded Ergon Energy Retail communities is always paramount, we also managers and teams through our Customer customers of no fees for late payments. have an obligation as a Government Owned Experience Network, Customer Strategy and Corporation and essential service provider to • Energex and Ergon Energy Network minimised Insights Council (General Manager level support them through times of hardship, as has the frequency and duration of planned outages representation), Executive Committee and been during our COVID-19 response. for critical works and provided as much notice BoardR17 and is integrated into all employee as possible to assist customers and supported performance agreements.R19 In 2020/21, we’ll During this time, we were leaders in our response impacted business customers through short pilot new Key Performance Indicators in addition to customers and communities. Immediately term tariff changes due reduced forecast energy to the Customer Index, to more broadly track we established the Emergency and Crisis use. customer and stakeholder satisfaction and Executive Leadership Team and EQL Emergency • Across Energy Queensland, we addressed community trust to improve ease of benchmarking Management Team to oversee response specific community information needs, such against other industry and non-industry activities and maintain delivery of core services. as First Nation communities, and adopted participants.R19 We monitored the customer experience and new work practices to continue to safely serve collaborated with Energy Charter signatories We continue to measure our employees’ communities. and customer advocates to pre-empt customer perceptions on how well we’re delivering for our impacts and to design and fast-track our response • Community investment funds were redirected customers through our Customer Enablement to support our customers and communities. to a COVID-19 Support Package, funding a Index, to help identify areas of opportunity Diploma of Financial Counselling Scholarship to improve customer outcomes. This year, we Customer Impacts Program, in an industry collaboration with recorded a 10% improvement on last year’s (March – June 2020) , as well as other result and exceeded our stretch target. Over initiatives. • 5,966 Ergon Energy Retail customers advised 2,200 employee verbatims from this survey are they had been affected financially by COVID-19 • Through collaborating with other Energy informing business improvement action plans (4,961 residential, 790 small business, 215 Charter signatories, we focused on making aimed at delivering better customer outcomes. large business). it easy for customer advocates to guide In addition, we continue to embed our customer customers on how to access rebates or seek principles - 1. Know Our Customers, 2. Deliver • 1,048 new Ergon Energy Retail residential support in bill payments and supported Value and 3. Make it Easy - particularly through customers joined the hardship program and the Energy Charter initiative to co-ordinate the Customer Award in our employee recognition 948 existing customers on the hardship advocacy for customers experiencing financial program. This year, we developed additional program advised they were impacted by stress. tools and measures to assess and report on the COVID-19. customer culture of the business to effect cultural • 20 complaints relating to COVID-19 were change. recorded by Ergon Energy Retail, 65 complaints While we have a strong foundation of capturing were received on planned outages for Energex customer insights, this year we developed our and 24 for Ergon Energy Network. Customer Advocacy Framework to more effectively harness customer feedback to action issues

2019-20 Energy Charter Disclosure Report 4 and improve future experiences. While we seek We also aligned our Stakeholder Materiality • Embed our Culture Model, which recognises consistency in how we advocate for customers, Assessment and Energy Charter Principles in employee experience equals customer we were effective in our collaboration with the Action to more effectively address key stakeholder experience, into the business to drive improved Queensland Government to deliver utility bill relief and community issues and continued to deliver customer service delivery and interactions. EQL R18 during COVID-19. community and customer engagement training • Embed our Customer Advocacy Framework to our network and retail employees to better We also continued to work with governments, with a focus on quantifying customer issues engage with our customers and communities. industry bodies and other key stakeholders and processes for quality assurance and to advocate for customers through designing Focus areas for improved customer further integrate our Customer Council and programs to better understand and meet our outcomes specific interest groups into our decision- making processes to ensure we are focused customers’ needs (see Case Study 1) and in • Improve customer and stakeholder on what matters most to our customers and developing regulations to support customers engagement to inform customer focused communities.R17 EQL for example, enabling suitable Electric Vehicle decision making through revisiting our charging. Furthermore, we completed our first engagement structure and activities and • Continue Stand-Alone Power System trials in Stand-Alone Power System trial for an agricultural incorporating a new engagement satisfaction partnership with customers to inform the next site as part of our plan to transform Fringe of measure into performance agreements.R19 EQL phase of our plan to transform Fringe of Grid Grid Supply, continuing engagement to influence Supply and provide more cost-effective options • Integrate customer needs-based segmentation regulations around connection requirements to for our customers and communities into the into strategic decision-making to meet our enable innovation for electricity supply improved future. EQL customers’ needs and expectations and deliver customer choice and affordability.R18 value. EQL • Continue trials to build new capabilities to support customers’ investment in more This year, we recognised the diversity of our • Aim to increase customer satisfaction and distributed energy resources, through enabling customer base and improved our understanding community trust through trialling new the dynamic export of energy. EEN-EX of our customers’ needs through the development customer corporate key performance indicators of our first Energy Queensland portfolio-wide measures and acting on insights obtained. EQL • Consider our understanding of and advocacy Customer Segmentation Framework for residential for customers who are least likely to provide and business customers. (See Case Study 2)R1,R2 feedback and/or complain. EQL

Case Study 1 – Case Study 2 – Know our customersR1 R2 R5 Programs to improve We’ve long had a good understanding of the technologies. understanding of diversity of our communities’ needs, from Since the launch, the Customer Segmentation remote and regional areas to cities. What business customer Framework has been integrated into we needed was a shared language across R18 business planning workshops, our customer needs the Energy Queensland Group to work more research program, including the Queensland With funding from the Queensland collaboratively to deliver for our customers. Household Energy Survey, tariff design and Government, Ergon Energy Network In 2019/20 we finalised our Customer call-center research activities to ensure and Ergon Energy Retail have been Segmentation Framework which provides we understand the needs and preferences implementing several programs to assist us with a more granular understanding of across our diverse customer base before we large businesses facing a bill impact from our diverse customer base. By mapping our commence product and service development. transitioning to cost reflective tariffs in residential and business customers under 2020-21. the macro-needs of Connection, Control The Large Customer Adjustment Program, and Progression, identified through market Large Customer Adjustment Trial and research with our customers, we are now Audit and Awareness Program have much better placed to collectively understand enhanced our understanding of the what drives our customers’ decision making needs of large customers who have and behaviours and take a customer-centric significant electricity demand and the approach to product and service design and challenges they face in adjusting to new decision-making. tariffs predominantly structured around Within the Framework, there are five tiers demand and fixed charges. – Residential, Small Business, Medium to An outcome of these programs is the Large, Big End of Town, and Agriculture, development of tailored website content which are underpinned by a total of 16 relevant to all business customers, Customer Profiles describing each segment’s both large and small, to assist those energy needs, attributes, preferences, pain customers to implement their own energy points, and their propensity to adopt new management programs.

5 2019-20 Energy Charter Disclosure Report Principle 2 – We will improve energy afordability for customers bill design and broadening the customer base With a strong focus across Energy Queensland In further support of affordability, several for Energy Analysis so customers can more on affordability, and “acting on all dimensions initiatives were progressed across the Energy easily engage and be empowered in making which contribute to the customer’s experience of Queensland Group. Energex and Ergon Energy decisions around their energy use. EER affordability”R20, we have assessed ourselves as Network continued to improve network evolved against Principle 2. management to enable customers to take • Continue to test the acceptance and efficacy advantage of renewables, batteries and smart of Home Energy Management Systems for We continue to monitor customer sentiment technologies, in line with customer needs to demand response with customers so that their on the affordability of electricity through the manage their electricity use. Ergon Energy Retail experience and needs form policy development Queensland Household Energy Survey, an continued to action customer and employee and activity in this area. EEN-EX annual research program conducted on behalf of insights to deliver a range of products and • Work in partnership with customers to Energex, Ergon Energy Network and Powerlink services to help customers manage their energy help understand their information and Queensland. Results for 2019 show stated bills – including advancements to the functionality communication needs and identify supportive average electricity bill sizes have dropped by of the My Account portal and the Energy Analysis information tools to maximise the impact of around $40 on average per quarter1 over the tool. Ergon Energy Retail also extended the Energy messaging and uptake of initiatives that can past three years with the number of customers Savvy Families program, resulting in a key finding help address energy affordability. EEN-EX highlighting that they had moderate-to-high that easy to access and understandable energy levels of bill concern falling by 14% from 71% data made possible through smart/digital meters, in 2017 to 57% in 20192. However, despite this positively affects energy consumption behaviours. fall, customers have indicated that electricity bills In demonstration of going beyond regulation, Case Study 3 – remain the top household cost of living concern while in April 2020 the Federal Minister for Agricultural tariff trials among regional Queensland households and Energy and Emissions Reduction proposed a leading to improved third for households in , rule change to customers’ electricity bills to help R20, R25 after medical and fuel costs. Despite a downward options customers make more informed decisions, Ergon pressure on prices, about 67% of customers Energy Retail had already completed significant The Agricultural Tariff Trial was an initiative believe pricing will increase beyond 5% in coming customer research to design a new bill to achieve under the Queensland Government’s years, indicating we still have work to do on this very outcome. Yurika continued to offer Regional Business Customer Support customers’ perceptions, confidence and trust cost-effective energy solutions and metering, with Package, implemented by Energy Queensland versus actual pricing trends. several tailored energy supply solutions delivered through Ergon Energy Network and Ergon In collaboration with our Customer Council, throughout the year. Their customer-focus was Energy Retail in 2017-18. highlighted with the winning of a landmark customer advocates and other key stakeholders The Trial was implemented in partnership 15MW solar contract for major shopping centers participating in a purpose-built advisory group, with Queensland Canegrowers, Queensland owned by Queensland Investment Corporation. Energex and Ergon Energy Network proposed a Farmers Federation, Cotton Australia and reduction in our revenue requirement of 19.3% Efficiencies continue to be sought as means to Bundaberg Regional Irrigators Group. From for Energex and 13.6% for Ergon Energy Network addressing affordability for our customers. Our the collated load profile data of primary in 2020 in our Revised Regulatory Proposals networks continued work to deliver unified systems producers, many of whom are on transitional to the Australian Energy Regulator (AER) in and processes, including a single model optimising tariffs, both a controlled load tariff and a December 2019. In addition, the proposed suite the program of work, customer service portals seasonal time of use demand tariff (Tariff of tariffs, now approved by the AER, provides for and design tools, which improve ease of access 24) were evaluated. Results informed Energy greater savings if customers choose to optimise for information for customers as well as lower Queensland, key stakeholders and customers their energy use. operating costs. Our networks also launched a about energy consumption profiles and Our customer advocates provided feedback Home Energy Management Systems trial in October current and future tariff options. 2019 to involve customers directly in testing the highlighting that whilst they felt our engagement At the request of stakeholders, a follow-on potential role of market-led demand response on the Regulatory Proposals met expectations, program continued through 2019-20 to solutions. our engagement around the proposed new tariffs further explore the suitability of load control fell short. Subsequently, we made changes to our Focus areas for improved customer tariffs for agricultural customers. Due to the proposed tariff suite for the 2020-25 regulatory outcomes success of these trials, and the expected period, realising that we needed to work in closer benefit for both customers and the network • Drive cost efficiencies in line with the AER’s partnership with our customers and stakeholders businesses of increasing load under control, revenue determinations. EEN-EX to obtain better insights on customer impacts. three new controlled load tariffs have been Work is underway to address concerns raised. • Improve customer access and understanding approved, with customer support, by the AER of energy data by implementing the new retail for the 2020 -2025 regulatory period.

1 Refer to Queensland Household Energy Survey, p 75. 2 Refer to Queensland Household Energy Survey, p.79.

2019-20 Energy Charter Disclosure Report 6 Principle 3 – Case Study 4 – We will provide energy safely, sustainably and reliably Decarbonising isolated communitiesR22 R23 Safety, sustainability and reliability are core As these plans are outworked, we envisage moving Ergon Energy Network and Yurika elements of our business. Given our steadfast towards being empowered in this area. are partnering with the Queensland focus on these elements we have assessed Government’s Department of Natural We continued to listen to our customers and learn ourselves as evolved against Principle 3. Resources, Mines and Energy to support from our responses to significant events, including the decarbonisation of energy supply to our the bushfires that occurred across Queensland Safety remote and isolated communities located in between September and December 2019 and Safety continues to be the priority for Energy Far North Queensland. our response to the COVID-19 pandemic. We Queensland, with strong performance supported are continuing to advance our position through These projects include a mix of centralised by monitoring and continuous improvement the development of an Energy Queensland ground mounted solar and decentralised processes and systems for our people, customers Environmental Sustainability & Cultural Heritage rooftop solar. Integral to enabling these and communities. Policy, which focuses on a low carbon future, installations is distributed energy resource Our public safety campaigns continue to raise waste and incidents, cultural heritage and monitoring and control which enables solar awareness on the potential dangers of powerlines, community relationships, and reducing the impact power generation while maintaining network and we continue to seek ways to provide customers of natural disasters.R21 stability. and communities with increased accessibility to This year saw 100kW of solar installed on information that will enable them to work safely Reliability four Doomadgee community rooftops, and around our network. In addition, our Safety Heroes Consistently our customer insights research our solar farm outside town was expanded program for schools continues to deliver great results suggest we are meeting our customers’ by 304kW, with advanced monitoring and learning outcomes with the younger generation. expectations on reliability. For our remote and control systems. Progress has also been made isolated communities, we are advancing towards We continue to roll-out employee safety initiatives in Pormpuraaw and others are planned to more sustainable ways of delivering safe and such as progressing the Network Controller follow. reliable energy solutions (see Case Study 4). Assessment Training and Recruitment Program in The outcome of these projects is decreased collaboration with Macquarie University to develop Our regional Queensland network has different reliance upon diesel generation; this is standardised industry tools to assess the skills of challenges to our South East Queensland network delivering savings for the community, network controllers and understand the fatigue (see Case Study 5), whereby reliability standards training and employment opportunities for limits of controllers to support more effective, are being impacted due to terrain and planned locals, and is a win for the environment. reliable and safer networks for customers. outages associated with an increase in safety- driven works on ageing sections of the network.R24 Sustainability In 2019/20 we focused on the implementation To show leadership and meet the expectations of Guaranteed Service Levels (GSLs) for reliability of our customers, Energy Queensland made a in remote and isolated communities for card Low Carbon Future Statement this year with operated meter customers so we can deliver commitments to enabling the transition of the improved customer service outcomes and hold Queensland electricity industry to a low carbon ourselves to account.R22 EEN/EX future and to build greater resilience in our network, communities and across our businesses Focus areas for improved customer outcomes to mitigate potential risks of a changing climate. • Advance our planned approach to a low-carbon The statement also makes a commitment to energy future, continue to decarbonise remote proactively reduce our carbon footprint. communities and enable distributed energy In our Future Grid Roadmap, which has a focus resources and further consider impacts of energy R21, R22, R23 on our energy technology and digital capability transition on communities. EQL requirement, we seek to lead the way in shaping • Progress work to support an increasing take-up the energy future of Queensland. Ergon Energy of electric vehicles and continue to develop Retail launched our first Electric Vehicle Home electric vehicle network and retail tariffs for Charging Plan with planned promotions anticipated residential and business customers. EQL to increase uptake of electric cars. Through Yurika, • Investigate the customer experience during our energy services business, we continue to power outages, through utilising customer develop offers that are responsive to customer journey mapping and other customer needs and incorporate solar generation, battery and research, to identify and action improvement energy management systems. We are progressing opportunities.R24 EEN-EX work to support growing adoption of electric vehicles and meet customer demand in this area.

7 2019-20 Energy Charter Disclosure Report Principle 4 – Case Study 5 – We will improve the customer experience Quality of supply for BlackbuttR24 As a result of a range of initiatives across Energy Communications In early 2020, several customers in the Queensland, our Customer Index, which is based We have made significant improvements in Blackbutt community west of Maryborough on more than 19,000 survey responses following our customer communications and channels, made complaints to Ergon Energy Network key service interactions with each customer group, providing customers with streamlined, portable in relation to their dissatisfaction with their recorded steady improvement over the last three and trustworthy access and information to reliability of supply. years, with a notable uplift in 2019-20. While this facilitate improved decision making. By nature, result is positive, our customers and stakeholders the energy industry is confusing to customers and Power to this community is supplied continue to advise there is room for improvement we recognise that clear communication on core via a long rural powerline, extending (See Case Study 6). On balance, we have assessed services, such as network and retail tariffs, is an approximately 20-30 kilometers from the ourselves as evolved against Principle 4. opportunity for improvement. Yarraman substation. We recorded 19 outages through December to late February Customer outcomes In 2019/20, to address customer feedback service 2020 - with a significant number being While we are now delivering customer benefits improvements were made to Ergon Energy caused by external impacts to the network identified through our established measures, Network’s and Energex’s Customer Self Service from wildlife, vegetation from outside of systems and processes, we are striving for greater Portal. (see Case Study 8) Ergon Energy Retail clearance zones and storm damage. consistency across our customer experience. focused on empowering customers to make decisions through making information accessible Customers and the local community were We continued to expand measuring our and easy to understand. For example, a customer- kept informed of Ergon Energy Network’s customers’ experience to include Yurika’s centred process was used to design a new bill, awareness and response to the reliability Commercial and Industrial Energy Services planned for roll-out in 2020-21. In addition, issue through relevant channels, including customers, Ergon Energy Retail’s Customer improved access to energy data was delivered the Area Manager engaging community Support Team and Credit Triage, and tailored our through the promotion of online tools, My Account stakeholders, media management and networks’ major customers connection surveys to and Energy Analysis.R26 information shared with leaders of social help maximise customer feedback being provided media forums. to the business. Complaints Following investigations, Ergon Energy Several initiatives undertaken this year have We continue to report customer complaints to our Network committed to improvements to delivered improved customer outcomes. Ergon Executive Committee and Board, including case locate and isolate faults more easily to Energy Retail made improvements to customers’ studies demonstrating systemic issues for attention. reduce the duration of the outage events experiences when using digital channels including In addition, we report on annual benchmarking and fast-tracked a project to enable webforms to reduce the number of handoffs for retailers conducted by the AER, which shows power to automatically restore in events across teams and Divisions, as well as using Ergon Energy Retail’s strong performance against (when safe to do so). Improved power voice analytics to verify customers calling in, other retailers. A range of customer experience outage notifications delivered through and routing customer to the correct team the improvements, led by Ergon Energy Retail, has our Business Improvement and Automate first time.R26 Ergon Energy Retail implemented a seen a significant improvement in complaints Systems Project is further assisting in customer facing checklist that guides customers handling and overall improvement in experience for managing the customer experience during through the steps to identify the reason for a residential and small business customers (See Case power interruptions. high bill and provides tailored solutions relevant Study 7). Network referrals from the Energy and to their situation. Ergon Energy Retail also pro- Water Ombudsman Queensland are in line with best practice performance.R25 R26 actively transferred credits from closed customer • Deliver further improvements for the large accounts to new accounts opened by relevant Focus areas for improved customer business customer experience. EEN-EXR25 customers limiting any delays in funds being outcomes • Ongoing website improvements, including credited to customers. Yurika worked with industry • Understand customer pain points in relation to enabling our customer portal to be accessed participants to improve the end-to-end process metering and implement improvements. EQL via mobile devices and therefore delivering following the Power of Choice implementation new channel choices to customers. EEN-EXR26 review, to ensure jobs are completed within • Use a customer-centred design process to agreed timeframes with minimal rescheduling of develop and implement a new Interactive Voice • Develop information and support tools to customer work and thereby limiting any potential Recognition system to manage the one million assist customers in better understanding their inconvenience to customers. customer calls handled each year, enabling tariff options and adoption of tariffs that best faster and more accurate call management for suit their circumstances and address their We’re also continuing to give focus to Key customers. EER affordability concerns. EQL Theme 5 – ‘closing the loop’, from the 2019/20 • Continue to look at technology investment to • Develop and implement further mechanisms Independent Accountability Panel Report, by help our customers engage with us, especially to close the loop on customer feedback and proactively taking steps to close the loop with in regional/remote areas. EERR26 action improvements so that customers know our customers, communities and stakeholders to • Improve management of the customer their feedback has been considered in decision demonstrate we are listening and taking action. R12 experience for Yurika customers. YKAR25 making. EQL

2019-20 Energy Charter Disclosure Report 8 Case Study 6 – Case Study 7 – Case Study 8 – Meter installation Transformation of Improved online experience for large customer complaints experience customers In late 2018, through the Voice of the In 2019-20, phase two of Ergon Energy Key external customers/stakeholders Customer program of post-interaction Network’s and Energex’s Business whom we regularly look to for service surveys, our internal Customer Experience Improvement and Automate Systems performance insights, have been very Network identified the need to improve Project actioned feedback requests to constructive in working with us to customer experience when making a improve interactions for customers, identify improvement opportunities to complaint. Ergon Energy Retail conducted including Retailers and Electrical drive a more consistent experience for a review by analysing customer Partners, with enhanced ability to interact all our customers, specifically in relation verbatims, customer account data and electronically via our Customer Self to the customer metering experience. complaint cases, as well as interviewing Service portal. complainants and compliance officers While improvements have been made The responsive design enables customers and observing business practices. in this area since Power of Choice, we to access services on the device of their acknowledge there is still work to do, Seven recommendations were choice (e.g. desktop, tablet, mobile) and particularly in relation to consultation on implemented, including targeting the offers new channels of engagement access to sites and timeframes for meter roll out of digital meters to customers (e.g. SMS, email, webchat, portal) for a installations for large customers. While with high account enquiries and range of online services. These include most installations are being upgraded rates of estimated meter readings, an management of a customer’s own in timeframes that meet customer employee education program to fill information online, providing self-meter expectations, there are still instances knowledge gaps, creating a centralised reads, subscribing to receive notifications where this has not been the case. complaints toolkit, transitioning the for unplanned and planned outages, One such example relates to a meter complaints function to a new system to reporting of power outages, faulty street upgrade required for a Queensland support case management, recruiting lights, graffiti/vandalism and trees in Council, which experienced long delays a Complaints and Compliance Officer powerlines. to support the bill redesign work, and in installation from the initial request. Performance and feedback will be establishing a joint working group to For this meter upgrade, there were three continuously monitored and considered agree an organisation-wide process service requests issued by Ergon Energy for future projects to ensure provision of around metering. In addition, a Retail, crews were dispatched on three relevant services to our customers. occasions and the customer received quality improvement framework was three power interruption notices before implemented to support employee the request was successfully completed. management of complaints. It highlighted a clear breakdown in As a result, a sustained improvement in effective communication between customer satisfaction continues to be internal Energy Queensland work groups. evident across all the key satisfaction As a result, the process has been refined drivers, with significant improvements with more work still to be done. in keeping the customer informed and The process for a tariff change request complaints resolved in a timely manner. and the associated meter upgrade (when required) touches many work groups and systems/portals within Energy Queensland, including Ergon Energy Retail, Metering Dynamics and Ergon Network. A review of the end- to-end process is underway to identify opportunities for system and process enhancements to remove bottlenecks and improve quality assurance with the aim to limit disruption to customer operations and improve communications and timeframes for delivery.

9 2019-20 Energy Charter Disclosure Report To further support energy inclusion and fairness Principle 5 – in the changing marketplace, Ergon Energy Retail continued to deliver the Sunny Savers Trial and We will support customers facing vulnerable circumstances the Queensland Government’s Solar for Rentals Trial with the goal to provide tenants access to We have strategies and systems in place to Inclusion Action Plan (See Case Study 9). This the benefits of renewable energy. In addition, support the diversity of needs of our customers, work integrated with the implementation of Ergon Energy Retail continues to proactively raise with significant programs which go ‘above and recommendations from a communications review awareness of concessions and rebates available beyond compliance.’R6 As such, we have assessed resulted in extensive face-to-face engagement to customers with a total number of 215,435 ourselves as empowered against Principle 5. to further support vulnerable customers (See customers accessing rebates, an increase of 4,166 Case Study 10). In addition, we refined our customers since last year.R29 This year, Energy Queensland gained endorsement Hardship Policy for Ergon Energy Retail to increase from Reconciliation Australia for our First Nations customer protections in line with regulatory Focus areas for improved customer Connections Plan, a commitment to strengthening changes and advanced early identification outcomes our relationship with First Nations people, with processes to support customers earlier.R30 R31 • Commence the next phase of the Financial an initial focus on building our cultural capability The maturity of Ergon Energy Retail’s focus on Inclusion Action Plan, which includes delivery internally, as the foundation for investing in place- vulnerable customers was highlighted during of energy literacy programs that will assist based initiatives. Through the Queensland Chapter COVID-19 with the priority placed on helping customers in better understanding energy of the Thriving Community Partnerships we customers entering hardship and fast-tracking of matters. EER collaborated with other corporates, not-for-profit support generally. and government agencies to explore opportunities • Continue to work with Queensland’s First collectively for positive change in our disaster Ergon Energy Retail also joined the Energy Nations community leaders to design response when the community is most vulnerable. Charter’s #BetterTogether Initiative Voices location-based initiatives to improve customer R27 for Power, in alignment with their ongoing outcomes in indigenous communities. EQL engagement with multicultural groups to deliver • Continue to invest in an internal Domestic In 2019, Ergon Energy Retail broadened the recommendations on suitable products and and Family Violence Working Party, seeking to service provided by the Customer Assist Team, services to assist these groups in the area of learn from similar practices in Victoria and go a team now established for 12 years, through financial inclusion.R27 R32 beyond legislative requirements in delivering delivering the foundation year of a Financial improved services for customers who are victims of domestic and family violence. EERR28

Case Study 9 – Case Study 10 – Foundation year for financial inclusion Face-to-face engagement (prior to COVID-19) R29,R30,R32 Following a communication channel review which recognised the need to overcome barriers such as location, language, and access to technology, 2019 was the founding year for Ergon Energy Retail’s Financial Ergon Energy Retail has committed to face-to-face community and Inclusion Action Plan (FIAP). Led by Good Shepherd on behalf of customer engagement. the Australian Government and in partnership with the Centre for Social Impact, this Plan has the goals of ensuring financial In the last year, Ergon Energy Retail engaged 20 of our 32 remote card- inclusion, developing financial resilience, promoting inclusive operated meter communities in education and training sessions, mainly on growth and reducing inequality. energy and financial literacy. As part of these engagements, customers called for the increase in presence and visibility within communities and to deliver By developing a FIAP, with input from customer advocates, Ergon highly accessible, easy to use products and services specific to their needs. Energy Retail made it easy for customers to access government The proposed next steps include development and delivery of energy literacy financial assistance programs by administering the Queensland programs and support on a broader scale to build greater financial resilience. Government’s Home Energy Emergency Assistance Scheme and by being the first retailer to offer online access to the Queensland Ergon Energy Retail continued to provide Bring Your Bills days each Government Electricity Rebate for eligible pensioners, seniors, month in Rockhampton and to increase energy literacy. In health care card holders and asylum seekers. addition, customer kiosks were successfully trialed in Rockhampton and Woorabinda, with high customer satisfaction on this digital technology as The work completed in 2019 was independently audited to ensure a communication channel. the business was on track and Ergon Energy Retail is now ready to progress to the next phase in 2020-21. Planned opportunities In September 2019, Ergon Energy Retail sent a contingent to support the include regular participation in Bring Your Bills days, information Drought Outreach Programs. Events were held in the Maranoa, Balonne, sharing through quarterly bulletins to community groups in Paroo, Murweh, Bulloo, Quilpie, Southern Downs, and regional Queensland and ongoing development of our energy Kingaroy Shires. Farmers in drought-declared regions experiencing financial literacy resources for use by customers and non-government difficulty were supported through waived charges and deferred payment organisations as a tool to build financial resilience. and access to appropriate financial products and services were provided as part of ongoing support for vulnerable groups.

2019-20 Energy Charter Disclosure Report 10 !A~f\r-. Ener~Vv~ Queensland

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