Utilit ease

The VCOSS Energy Campaign Steering Committee submitted the following recommendations to the Committee of Inquiry into Financial Hardship of Energy Consumers:

Victoria urgently needs an innovative approach to energy and utilities, which joins up economic policy with social policy and environmental policy. A responsive policy framework will enhance Victoria’s advantages in the key areas of social inclusion and environmental sustainability, while contributing to economic development and job creation in urban, as well as rural and regional Victoria.

Recommendation 1:

That the Victorian Government to adopt a fuel poverty alleviation strategy, which joins up utilities policy, social policy and environmental policy to alleviate fuel poverty, conserve water and meet its global responsibilities for reducing greenhouse emissions, while easing the current pressure on electricity and water networks for major supply augmentation. The fuel poverty alleviation strategy should:

• Significantly increase investment in the retrofitting program administered by SEAV and develop an ongoing retrofitting service.
• Establish and fund an appliance exchange program for disadvantaged Victorian householders.
• Establish, fund and trial thermal performance standards for the private rental market and commit to the introduction of mandatory standards in the sector in the next two years.
• Regulate tariff structures to provide better social policy outcomes.
• Provide incentives to retailers to deliver outcomes based on least-cost planning.
• Increase funding and improve funding arrangements for customer representation, research and advocacy in the utilities sector.
• Ensure legislative and resource commitments for the maintenance and enhancement of the Energy Retail Code and proper delivery of customer entitlements.

Recommendation 2:

That the government strengthens the impact of regulated safety net provisions by introducing a range of regulatory and non-regulatory strategies to achieve improved social, economic and environmental outcomes for Victorian customers, including: mandated thermal efficiency performance standards for rental properties; a significant increase in the delivery of retrofitting programs; regulation of energy tariffs to support improved social and environmental outcomes; the adoption of least cost planning in the development and implementation of energy policy.

Recommendation 3:

That regulated ‘safety net’ consumer protections and hardship provisions contained in the Energy Retail Code be retained and strengthened to incorporate a legally binding hardship guideline in the Energy Retail Code, which ensures that customers who are willing but not able to pay are not disconnected and clarifies customer entitlements to an affordable repayment plan.

Recommendation 4:

The ESC review and report on retailer performance in relation to systemic breaches of the retail code.

Recommendation 5:

That Government reviews the performance of the Essential Services Commission in relation to systemic breaches of retailer non-compliance.

Recommendation 6:

That the current regime of Government concessions and grant assistance schemes be retained and strengthened to provide for customers who fall through the safety net.

Recommendation 7:

That the introduction of prepayment meters to Victorian domestic households is prohibited, thereby ensuring all Victorian households have access to regulated consumer protection provisions.