Gavin Dufty St Vincent de Paul Society
Background – re-stating the obvious � Change to demand tariff is a fundamental change to the way poles and wires are charged � There will be a community conversation � Households and people affected (government, you me and others will need time to talk and ask questions have to allow for this ) � While the TSS consultation process has been relatively good given the timeframe (could have been longer) HOWEVER have to remember that the vast majority of the community have not been involved – they need time to get there head around this - this is a critical issue in the transition
Assumptions � The perspective here is on the proposed tariffs washing though in retail price structure (big assumption - if not raises other issues) � Distribution price resets and changes in smart meter charges excluded - But will talk about that in transition � The over all message/ signal is – low and medium consumption worse off and those with higher consumption better off (regardless of demand) and overall more than 50% total worse off and in some cases much higher � This is hard to sell – AND contrary to the common belief of what is a GOOD and what is a BAD energy consumer - conflict between social and environmental signals and norms – might be economically rational but .. � But wait there's more - The bill to bill impact is a issue ! Load up the summer 4 months ! � So headline grab for Herald Sun – may be “Summer bill scorcher!”
Transitional issues how to manage / support change � Changes in other underlying costs ie smart meters and distribution price path – really important need to be aligned to support transition � Jan 1 vs July 1 – start date makes a difference at the start � PRE change - Shadow / ghost pricing was mentioned in focus group � Opt in – VS Opt out (opt in – not as quick – opt out community concern and price shock all at the same time) � Mandated – people not happy about that unless a lot of assurances or nobody is worse off (see Jemina) � Other ways to mandate – move in move out, new connection, new retailer, new contract …. � Get it right first time pushing it though risks community backlash � Other transitional issues – Dual fuel vs all electric households / PV vs non PV, non economic sites non remotely read, imbedded networks,
View from SA focus groups � 2 focus groups held in SA the themes were: � Big change but up for it “if its good for us all” and I can “see or feel the benefit” will give it a go - ongoing feedback on how its working – bit like water levels in dams if take a pricing approach on demand how it has helped the community � However concerns are many : � Anti family – more pressure on home maker – “I cant change things when kids come home – cooking dinner cant wait” … “was this designed by a man” � Wont know till bill hits (not fair) of concern who gets blamed in the house for household energy use !! � The ½ hour no forgiveness NOT FAIR – need and orb NEED something strong on this � Other impacts issues raised – loose my pay on time discount – late fees where they apply – more stress and ….
Focus groups - How to help � Clarity on WHO who will help and who is responsible - role and responsibility of DB /RB (if its them they need to help --- “give me an ORB” appliance management) � Need help and information before it happens – proactive – need to know if I am going to get a high bill before and how to stop it � Consistent messaging � Will need different bill design and information
Complaints – Ombudsman views � A shift to demand based tariffs will be a significant shift in how their electricity bill is calculated and billed and will likely cause considerable confusion. A bill with – fixed charge, demand charge, kWh charge (peak off peak) � As the opportunity for innovative product and service offerings increases further, so too does the potential for confusion and misunderstanding. � How the tariff is presented on the bill may also drive complaints seen this with PV and Smart meters � Complaint volumes will be influenced by the distributor/retailer communication and processes. As with the solar PV installation process
Complimentary measures – comfort to support change – we have your back ! � Retail code NECF changes (Information, graphs, due dates information on charges etc) � Concession adjustment (more seasonality) Utility relief grant higher due to change in bill load � VEET and other state based federal supports interact with it � Switch on to support households understand and be active in the new market – possibly bill to bill information, details of network costs � Hardship provision and arrangements
Finally help me and others to help the reform � I work in an organisation 20,000 Victorian volunteers assist over 100,000 households – REALLY DIFFICULT to sell this – if its bad and I cant offer comfort - I will have to advocate for the group and interests I am employed to support � Different networks have different impacts and options – people wont distinguish, as a commentator its really hard to get that detail out there continuity is important � Retail market impacts – further price dispersion – confusion – distrust and erosion of confidence retailers need to be clear and transparent on what they are doing � And impacts for the AER will need to be clear on how they considered and dealt with the consumer impact principle – I am being asked this now � Lets get this right first time – we get it wrong could set things back
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