EWOV 2018 Annual Report OUR PURPOSE OUR GOAL OUR VALUES To independently To be a fair, Independence, and efficiently impartial and highly access, equity, resolve disputes respected dispute quality, effectiveness, between customers resolution service efficiency, community and energy and awareness, linkages water companies in Victoria and reduce their occurrence REPORTING RESPONSIBILITIES DATA NOTE MORE ON OUR WEBSITE Our Annual Report is prepared and This report reflects data for the year The online version of this report distributed in accordance with the 1 July 2017 to 30 June 2018, run at 2 at www.ewov.com.au presents Ombudsman's responsibilities under July 2018. Percentages are rounded visualisations and graphical the EWOV Charter and the Benchmarks to the nearest whole number, so representations of the cases for Industry-Based Customer Dispute may not always total to 100%. EWOV received in 2017-18. Resolution (CDR Benchmarks). EWOV acknowledges the Aboriginal and Torres Strait Islander people of this nation. We acknowledge the traditional custodians (the Wurundjeri people) of the land where our organisation is located and where we conduct our business. We pay our respect to Aboriginal ancestors and Elders, both past and present. IN OUR REPORT ABOUT EWOV 2 2017-18 SNAPSHOTS 3 GOVERNANCE 6 Chairman's message 6 EWOV Limited Board 7 FROM THE OMBUDSMAN 8 Ombudsman's overview 8 Explaining 'embedded network' 11 OUR PERFORMANCE 12 OUR CASEWORK AND PROCESS 18 ISSUES AND TRENDS 26 Billing issues and trends 28 Credit issues and trends 32 Provision issues and trends 36 Transfer issues and trends 37 Supply issues and trends 39 Land issues and trends 40 Marketing issues and trends 41 Customer service issues and trends 42 Privacy issues and trends 43 SYSTEMIC ISSUES 44 SCHEME PARTICIPANTS 46 ELECTRICITY 48 GAS 54 WATER 60 FINANCIAL STATEMENTS 66 ABOUT EWOV Fair, free, impartial, independent dispute resolution Energy and Water Ombudsman (Victoria) (EWOV) is a not- EWOV was set up in late 1995 as Australia's first electricity for-profit external dispute resolution (EDR) scheme, which Ombudsman, expanding to natural gas in 1999, water handles complaints from energy and water customers in 2001, liquefied petroleum gas (LPG) in 2005, and about energy and water companies, fairly and impartially. embedded networks in 2018. The framework for its EWOV's services are free to customers. operation is drawn from the EWOV Charter, the EWOV Limited Constitution, licence conditions for the electricity EWOV operates on an industry-based Ombudsman model, and gas industries, the General Exemption Order 2017, specialising in customer dispute resolution using alternative relevant water legislation, the liquefied petroleum gas (LPG) dispute resolution processes. We assess complaints on a industry code and the Benchmarks for Industry-based case-by-case basis — taking account of relevant industry Customer Dispute Resolution (CDR Benchmarks). codes, good industry practice and the law — to reach 'fair and reasonable' outcomes. We don't take sides. EWOV is not a government body or an industry regulator, but it is important that we maintain good working EWOV has the power to deal with most issues that arise relationships with the bodies that have those closely-related between energy and water customers and companies. roles and responsibilities. By doing so, we extend the value While the biggest category of complaint is billing, we also of our dispute resolution work beyond individual complaints. deal with complaints about service connection and supply, affordability, energy disconnection, water restriction, EWOV opened to full operation in May 1996. Since then, to energy marketing and transfer, metering, vegetation 30 June 2018, we have helped resolve just over 654,748 cases management and land access. lodged by Victorian electricity, gas and water customers. Drawing on EWOV's casework, we publish information about energy and water complaints, issues and trends. We work with energy and water companies, regulators and consumer groups to drive customer service improvements and help prevent complaints. We also have a responsibility to identify systemic issues and report these to the energy or water company and regulators, so that they can be addressed. ''EWOV operates on an industry- based Ombudsman model, specialising in customer dispute resolution using alternative dispute resolution processes.'' Cynthia Gebert Energy and Water Ombudsman (Victoria) 2 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2017-18 SNAPSHOTS cases were 34,524 received 34,524 CASES 8% 32,843 COMPLAINTS 8% 1,681 ENQUIRIES 9% 5-year history 84,758 2013-14 50,437 2014-15 36,152 34,524 2015-16 2017-18 32,002 2016-17 2018 ANNUAL REPORT 3 2017-18 SNAPSHOTS cases were 30,483 finalised Cases by industry ELECTRICITY 21,085 11% GAS 11,268 7% WATER 1,928 8% Cases by issue BILLING 13,067 38% CREDIT 8,121 24% PROVISION 5,187 15% TRANSFER 4,077 12% SUPPLY 1,257 4% GENERAL ENQUIRY 1,006 3% LAND 619 2% MARKETING 573 2% CUSTOMER SERVICE 522 2% PRIVACY 95 <1% 4 ENERGY AND WATER OMBUDSMAN (VICTORIA) 2017-18 SNAPSHOTS ABILITY TO PAY PROVISION MARKETING 1 IN 3 CUSTOMERS WAS CASES CASES WORRIED ABOUT BEING UP 41% MISLEADING ABLE TO PAY FOR ENERGY NEW CONNECTION CASES MARKETING UP 19% OR WATER MORE THAN DOUBLE PRESSURE SALES UP 27% Top 5 complaints 1 HIGH BILL 3 3,626 COLLECTION 2 2,968 DISCONNECTION / RESTRICTION 3,437 4 NEW 5 EXISTING CONNECTION CONNECTION 2,502 2,420 Top sub issues BILLING PROVISION HIGH NEW CONNECTION ERROR EXISTING CONNECTION TARIFF DISCONNECTION/RESTRICTION CREDIT TRANSFER DISCONNECTION/RESTRICTION SITE OWNERSHIP COLLECTION CONTRACT TERMS PAYMENT DIFFICULTIES WITHOUT CONSENT 2018 ANNUAL REPORT 5 GOVERNANCE Chairman’s message This year's jurisdictional extension to 'embedded network entities' presented the EWOV Limited Board with its biggest strategic challenge since the water industry joined the scheme in 2001. Some sellers and suppliers of electricity in Victoria It is clear that the existing members of the company — are exempt from the requirement to hold a retail or the ‘scheme participants’ of the EWOV dispute resolution distribution licence. This includes embedded networks, scheme — have confidence in how the scheme is being such as shopping centres, retirement villages, apartment run and are comfortable with the principles by which it complexes and residential caravan parks. By way operates. Congratulations must go to everyone involved, of a new regulatory framework announced by the especially Ombudsman Cynthia Gebert and her leadership Victorian Government in August 2017, most embedded team, who did a magnificent job to bring it all to fruition networks now need to be a member of a customer with such a high level of stakeholder confidence. dispute resolution scheme approved by the Essential With EWOV now approved as a dispute resolution Services Commission. Captured by these changes are scheme for customers in embedded networks, the potentially hundreds of embedded network entities. Board acknowledges the complexity and the adaptation Aware that these entities might seek EWOV Limited that EWOV will face as it begins to operationalise this membership, should our scheme become the approved new jurisdiction. With similar jurisdictional changes dispute resolution scheme, the Board supported an taking place across Australia, albeit within different early thorough assessment by the Ombudsman of what regulatory frameworks, we are confident that the the changes may mean. The major consideration was strong working relationships among our offices will whether the current EWOV office could deal with such stand the Ombudsman and her team in good stead. an increase in the number of scheme participants and, I am delighted to have been reappointed as EWOV if so, how. There was also considerable consultation Limited Chairman for a further three years to November and much thought given to whether the current 2020 and thank my Board colleagues for their modus operandi would be appropriate for these continuing support and focus on good governance. entities, which vary in size, structure and complexity. The Board engaged consultants from KPMG to help us 'road test' the new funding model. Our lawyers, Gadens, framed the amended wording for the EWOV Paul Sheahan AM Limited Constitution and for a plain English makeover Chairman, EWOV Limited of the EWOV Charter. Thank you to those who took part in our consultations to make sure that we had covered all bases. The final Constitution and Charter were approved by the EWOV Limited members at a General Meeting in March 2018, with no objections. 6 ENERGY AND WATER OMBUDSMAN (VICTORIA) GOVERNANCE EWOV Limited Board CLAIRE HAMILTON GERARD BRODY JONATHAN BRISKIN GAVIN DUFTY AusNet Services Consumer Action Origin Energy St Vincent de Industry Director, Law Centre Industry Director, Paul Society appointed Consumer Director, appointed August 2014 Consumer Director, December 2011 appointed August 2014 appointed August 2013 NEIL BRENNAN RONDA HELD PAUL SHEAHAN AM PETER GARTLAN EUGENIO (GINO) Western Water COTA Victoria Chairman, Consumer Director, FRAGAPANE Industry Director, Consumer Director, appointed appointed July 2012 AGL Energy appointed appointed July 2016 November 2014 Industry Director, August 2002 appointed August 2015 Company Secretary: Christopher See, EWOV, appointed October 2008 Governance statement Energy and Water Ombudsman Limited (Victoria) scheme called the Energy and Water Ombudsman (EWOV Limited) is a company limited by guarantee. (Victoria) (EWOV) and appointed an Ombudsman who The company is legally separate from and independent has authority under the EWOV Charter to receive, of the energy and water companies and government. investigate and facilitate the resolution of complaints. It is governed by way of the EWOV Limited Constitution. The members of the company are the 'scheme participants’ of the EWOV dispute resolution scheme. EWOV Limited's objective is to independently and efficiently resolve disputes between customers and The EWOV Limited Board has an equal number energy and water service providers in Victoria, with the of industry and consumer directors, as well as further aim of reducing the occurrence of disputes.