Managing our Energy Transition 7 June 2019 Rosemary Sinclair AM - - PowerPoint PPT Presentation

Managing our Energy Transition

7 June 2019 Rosemary Sinclair AM Chief Executive Officer

Community dissatisfaction is well founded

2

Source: ACCC Retail Electricity Pricing Inquiry Preliminary Report

Evolution of Energy

3

4

“I would prefer my six cents of power, sorry my units of power, which aren’t six cents, to go into my community. I get six cents from [energy retailer], but if I get 25 cents because I gave it to you because you have fallen on hard times, well I’m delighted.” Attendee, ECA Regional Listening Tour April-June 2016

Consumers driving change

ECA-UMR Solar and Battery Research (May 2016), p 12

ECA-UMR Research

Now and next…manage my costs and give me control

6

60 32 34 27 26 17 6 3 24 30 28 27 24 22 11 5 8 20 18 20 22 27 16 10 10 20 30 40 50 60 70 80 90 100

Reducing household energy bills Becoming less dependent on mains electricity Being able to get a feed-in-tariff for feeding … Government grant schemes for installing… Protecting the environment Adding to the house's resale value Recommendation by a friend or family The fact that your neighbours had it

Factors contributing to decisions to install solar PV

Strongly agree Mostly agree Mildly agree

Energy Consumer Sentiment Survey Dec 2018

Consumers are willing partners in transformation

7

42 40 43 49 45 53 52 42 42 27 29 24 27 27 21 26 24 30 19 18 21 14 14 16 13 22 14 13 12 12 10 15 11 10 12 13

10 20 30 40 50 60 NSW VIC QLD WA SA TAS ACT SEQ Business

Energy use reduction campaigns

Reduce usage without an incentive Reduce usage if incentivised Not change usage Not sure

9

10

Our vision for the market

11

ECA promotes these three advocacy principles as the basis for better consumer

• utcomes.

Affordable Optimised Individualised

Better consumer

• utcomes

Moving beyond the ‘trilemma’ – three parts to consumer focused

• utcomes

12

Industry Dimension Consumer Attribute Affordable The industry can only regain trust by addressing prices Satisfied Paying no more than they need to for the service they want Individualised Information and services to meet consumers where they are Engaged Consumers can engage on their terms Optimised System decisions include consumers and their assets, rewards, prices and decisions Confident That the markets/systems are working in their interests

Complex Change

13

The Energy Charter … whole of system thinking to win the trust to transform

14

Source: The Energy Charter

Thank you