Energy and Water Ombudsman (Victoria) 2011 Annual Report 15 years of contributions to the Victorian community About EWOV The Energy and Water Ombudsman (Victoria) Our vision (EWOV) is an external dispute resolution EWOV will be the most effective and scheme, operating on an independent highly regarded Ombudsman scheme industry-based Ombudsman model. in Australia and among the world’s best Our services are free to customers. practice schemes. We will be responsive to consumer and customer needs, and We can assist with most issues that arise respected by energy and water providers, between customers and electricity, gas and regulators and legislators. We will be an water companies—including the provision employer of choice. and supply of a service, the failure to provide or supply a service, billing, credit, payment Our mission arrangements, disconnection and restriction, marketing, transfer, poles, wires, pipes, We will achieve our vision by: vegetation management and access to land. Ŕ WJHPSPVTMZNBJOUBJOJOHPVSJOEFQFOEFODF and high professional standards We provide impartial advice, information and referral in response to enquiries. Ŕ MJWJOHPVSDVMUVSBMWBMVFT Ŕ JNQMFNFOUJOHFGGFDUJWFBOEFGGJDJFOU We use alternative dispute resolution processes processes to resolve energy and water complaints impartially, informally and speedily. Our aim is Ŕ DPOUJOVPVTMZCFODINBSLJOHPVS to achieve fair and reasonable outcomes, having performance against world’s best practice regard to good industry practice and the law. and introducing improvement Ŕ NBJOUBJOJOHDPOTVNFSBXBSFOFTT From the cases we receive, we identify potential systemic issues and, as appropriate, report these Ŕ CVJMEJOHDVTUPNFSDBQBCJMJUZ to the relevant energy or water company and Ŕ XPSLJOHXJUIFOFSHZBOEXBUFSQSPWJEFST industry regulator. to encourage the ownership and sustainable resolution of complaints We put information about energy and water complaints, issues and trends into the public Ŕ EFWFMPQJOHPVSTUBGGUISPVHIUSBJOJOH BOE professional and personal mentoring arena. Ŕ WBMVJOHBOEBDLOPXMFEHJOHUIF We work with energy and water companies, contribution of our staff regulators and consumer groups to drive customer service improvements and help Ŕ QSPWJEJOHBTBGF IFBMUIZBOEGMFYJCMF working environment prevent complaints. Ŕ FWBMVBUJOHBOEBQQMZJOHOFXUFDIOPMPHJFT Our policies and processes comply with the Benchmarks for Industry-Based Customer Ŕ MPPLJOHBIFBEGPSTPDJBM FDPOPNJDBOE legislative issues likely to impact on Dispute Resolution Schemes (National EWOV’s policies or processes. Benchmarks) published in 1997 by the Commonwealth Department of Industry, Our guiding principles Science and Tourism. These National Independence: impartial complaint Benchmarks focus on the principles of resolution not advocacy accessibility, independence, fairness, accountability, efficiency and effectiveness. Access: ready access for individual consumers Equity: fairness to all parties Quality: highest professional standards About this report Effectiveness: high calibre people, supported EWOV’s Annual Report is prepared by training and technology and distributed in accordance with the Efficiency: optimal resource use Ombudsman’s responsibility under Community awareness: community the EWOV Charter and the National awareness building Benchmarks. This year’s theme highlights effective stakeholder links and EWOV’s 15 years of contributions to the Linkages: working relationships Victorian community. 15 years of contributions to the Victorian community Set up in 1995 and ‘opening for business’ We’ve been publicly reporting on We’ve tracked and reported on trends We’re working with the other energy and community Victorian the to contributions of 15 years on 1 May 1996, we started out resolving individual electricity, gas and water in energy supply disconnection for water Ombudsman schemes around Australia complaints between electricity customers companies since 2000. Response to non-payment. Analysis we presented towards consistency of our policies and and their companies. In 1999, our services our doing this—from all stakeholders, to the Essential Services Commission in procedures. This is benefitting companies, were extended to gas, from mid-2001 including the companies themselves— 2004 indicated a systemic issue around government, regulators and customers. to water and from mid-2005 to liquefied has been positive. Our aim has always electricity and gas customers having their petroleum gas (LPG). The number of been to ensure important information supply disconnected, or being threatened We’ve trained hundreds of our own electricity, gas and water companies on customer complaints and systemic with disconnection, despite evidence staff in alternative dispute resolution participating in our scheme has grown issues is accessible to customers, industry, of their incapacity to pay their bills. In methodologies—skills and knowledge from six to 66. By 30 June 2011, we had government and regulators, in meaningful December 2004, the Victorian Government they’ve carried into subsequent received almost 276,000 electricity, gas and useful ways. introduced a payment for wrongful employment in all sectors of the and water cases. energy disconnection, with accompanying community. When voltage variation complaints immediate and significant reductions in Over the years, several large increases emerged early on, we reported the trend electricity and gas disconnections. For the last six years, we’ve tracked in complaints and quickly-emerging to regulators. This prompted a series of financial redress from the complaints complex issues have required agile meetings with companies and regulators Our contact with customers means we’re EWOV has investigated. In that time, responses from us to review and streamline on power surge insurance and surge sometimes the first to detect problems energy and water companies have our policies and processes. By doing so, protection devices. The Ombudsman’s with energy and water company processes. provided $16,342,720 to customers in we’ve helped minimise resolution delays for Binding Decisions on voltage variation By drawing potentially systemic issues billing adjustments, fee waivers, payments customers and we’ve helped energy and cases in 1996 prompted changes in to the attention of the companies, we’ve in recognition of poor customer service, water companies bring about quicker and company behaviour, and regulatory facilitated early action by them to address guaranteed service level payments and debt direct resolution. action to introduce a voltage variation the problems. The benefits have gone reductions/waivers. compensation guideline. beyond the customers who complained to The energy and water landscape has us to thousands of customers who were Following approaches by community become increasingly complex, especially In late 2001, concerned at receiving also affected but didn’t complain or didn’t and government agencies, we’ve been for customers. We’ve built our capability more cases about payment difficulties, know about the problem. It’s also enabled pleased to become involved in some to translate complex technical and billing we convened our first conference on regulators to take action. In the past four really innovative community projects information into simple explanations to financial hardship issues. Drawing together years, we identified systemic energy issues —including the Committee for Melbourne’s help customers understand the issues customer, industry, government and affecting some 263,204 energy customers ‘Utility Debt Spiral Project’, Good Shepherd and work towards resolution of their regulatory representatives, this event and 60,215 water customers. Youth & Family Services’ ‘Utilities Project for complaints. stimulated discussion and highlighted the Women in Prison’, the ‘Transitional Housing leading role of water company hardship Full electricity retail competition from Management Project’ co-ordinated Our complaint handling role is a unique programs. It led to new thinking on the January 2002, and gas retail competition by WAYSS, outreach programs run by source of independent research about the part of energy retailers who, over the next from October 2002, brought choice Consumer Affairs Victoria’s Indigenous energy and water customer experience. year, started to develop programs of their of energy retailer for some two million Consumers Unit and Footscray Community Through a regular e-newsletter, extranet own. It also led regulators and government residential and small business customers. Legal Centre’s ‘Bring your bills days’. We’ve and annual conference, we’ve shared to change regulations to require energy Our reporting on energy retail competition made 91 regional and rural community our experience with energy and water and water companies to have such trends has informed customers and helped visits with a community education focus. companies, to help drive customer programs. industry, regulators and government service improvements. Since 2004, address related issues. Consumer Affairs we’ve facilitated 145 complaint handling In 1998, one company took action in Victoria has issued several enforceable workshops for company staff. the Victorian Supreme Court, after the undertakings and agreements following our Ombudsman made Binding Decisions referrals of energy marketing complaints. We’ve made 177 formal submissions in three voltage variation cases. We to state and national regulatory, defended and won the action, with the government and industry policy judge vindicating