Two years on: Energy Ombudsman Queensland

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1 Two years on: Energy Ombudsman Queensland

2 WHO IS EOQ A free, fair and independent dispute resolution service for Queensland s residential and small business energy consumers who are unable to resolve a complaint with their energy supplier. Established 1 July 2007 to give consumers extra protection in the new full retail competition market. We can only assist those who have tried to resolve the problem with their energy supplier first.

3 WHAT WE DO We can assist with unresolved complaints about: account errors/disputes problems with payment disconnections damages and loss market conduct of energy retailers contract issues vegetation management (eg trees near power poles) supply quality and reliability delays in connection or extension of supply customer service levels and rebates equipment issues

4 WHAT WE CAN T DO We cannot assist with complaints about: the fixing of prices or tariffs the cost of capital works (eg extension of supply) products such as air conditioners and hot water systems or electrician services offered by electricity retailers on-selling of electricity to tenants in caravan parks, retirement villages and other multi-tenanted dwellings bottled LPG (liquefied petroleum gas) the Community Ambulance Cover Levy electricity consumption over 100 megawatt hours a year gas consumption over one terajoule a year

5 WHAT HAS HAPPENED SINCE 1 JULY 2007? Over half (620,000) of small customers in the active south east Queensland market have moved to a contract. EOQ closed 16,595 cases at 31 March % of EOQ customers satisfied or very satisfied with our performance. 45% of Queenslanders don t know who can help with their unresolved energy disputes.

6 Total cases recieved per month Cases Jul 07 Aug 07 Sep 07 Oct 07 Nov 07 Dec 07 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 09 Feb 09 Mar 09 Month

7 Closed Complaint Investigation (by category) Disconnection 3% Distribution & netw ork 2% Customer service 12% Competition / market 13% Connection 5% Account 64% Compensation 1%

8 Closed Complaint Investigations (by Account Case Types) High / Disputed Account 27% Account Fees & Charges 27% Debt Collection 2% Account Responsibility 18% Account Payment Difficult 26%

9 COMMON PROBLEMS & COMPLAINTS Account fees and charges EOQ can negotiate reimbursement of incorrect fees and charges (eg Community Ambulance Cover levy) and back-dated payments to customers who haven t received a rebate they re entitled to. High and disputed accounts Many people tend to under-estimate their energy consumption. Account payment difficulties EOQ can help negotiate extensions to payment due dates and assist setting up payment plans with their suppliers.

10 COMMON PROBLEMS & COMPLAINTS Contract issues It is important people read the fine print and understand the terms and conditions of contracts they are signing. Market conduct Our investigations have resulted in the termination of employment or retraining of salespeople making false or misleading statements. Connections It is important consumers are aware of the time it can take to connect supply to a new residence.

11 SYSTEMIC ISSUES Non-issue of bills Impacts on customers ability to budget and pay. Credit problems can occur with retailers taking outstanding balance from direct debit payments, even though account not sent. Pensioner rebates Electricity or gas rebates not applied correctly. Can result in overcharging twice - not receiving rebate and being charged the Community Ambulance Cover levy.

12 SYSTEMIC ISSUES Section 32 no action on accounts Action on accounts cannot continue once EOQ has issued a Notice of Investigation. Some retailers have ignored this which can mean disconnection or credit issues for customers. Retailers have been reminded of their obligation under the Energy Ombudsman Act 2006.

13 WHAT S NEXT? Working with entities and consumers From 1 July, EOQ will give complainants option to escalate routine problems to a higher level with entities before investigation. EOQ will upgrade best-practice complaint management software in 6-12 months. Multi-case meetings with entities to discuss outstanding cases. Regular meetings with entities to identify issues and solutions.

14 CONTACT US Energy suppliers must be given the opportunity to resolve the problem first. If your client is unsatisfied with the response, contact EOQ for assistance. Freecall: Online: Fax: (07) Write to: PO Box 3640, South Brisbane QLD 4101 Visit us: Brisbane - Level 9, 179 North Quay (8:30am-5pm) Under the Privacy Act 1988 (Commonwealth), we are only allowed to assist the actual energy account holder, unless permission, either written or verbal, has been given to act on someone else s behalf.

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