Annual Report

Transcription

1 Annual Report Accessibility Independence Fairness Accountability Efficiency Effectiveness

2 Letter of Compliance The Honourable Mark Bailey MP Minister for Main Roads, Road Safety and Ports and Minister for Energy, Biofuels and Water Supply GPO Box 2644 Brisbane Qld September 2016 Dear Minister I am pleased to present the Annual Report and Financial Statements for the Energy and Water Ombudsman Queensland. I certify that this annual report complies with: the prescribed requirements of the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009; and the detailed requirements set out in the Annual Report requirements for Queensland Government agencies. A checklist outlining the annual reporting requirements can be found at page 95 of the annual report or accessed at Yours sincerely Lyn Stevens Acting Energy and Water Ombudsman About this report Communication objective The Energy and Water Ombudsman Queensland (EWOQ) provides a dispute resolution service to small energy customers in Queensland and small water customers in South East Queensland. We assist a diverse range of customers from across the State. This annual report presents information about the performance of the Ombudsman scheme for the period 1 July 2015 to 30 June It contains a record of EWOQ activities and achievements for the financial year against our objectives and summarises our future priorities and challenges. Each section of the report is tabbed for ease of navigation and a glossary of terms and index is available at the end of the report. While this report is produced under the prescribed requirements of the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009, the report has been written for the benefit of all our stakeholders including: Queensland residential and small business energy customers south east Queensland residential and small business water customers Queensland energy, and south east Queensland water, retailers and distributors members of Queensland State Parliament. Availability and access Online The annual report is available online, visit Printed copies For a printed copy of the annual report, or for more information, contact: Senior Communications and Marketing Officer Energy and Water Ombudsman Queensland PO Box 3640 South Brisbane BC QLD 4101 Phone: marketing@ewoq.com.au Interpreter service EWOQ is committed to providing accessible services to Queenslanders from all culturally and linguistically diverse backgrounds. If you have difficulty understanding the annual report, you can contact us on and we will arrange an interpreter for you, free of charge. ISSN: X Energy and Water Ombudsman Queensland 2016 i energy+water ombudsman QUEENSLAND

3 Our customers and their issues Highlights In the community: Participated in 11 television and radio interviews 53 stories published/ broadcast about EWOQ Participated in community training sessions, workshops and information days. EWOQ closed cases: 8895 (-19% on ) other 560 water 644 gas 7504 electricity Top three complaints: Billing Credit Customer service Resulting in: $772,302 in outcomes for customers Our organisation: Income of $6,082,000, expenses of $6,077, full-time equivalent employees We received 8749 cases (-21% on ) Five year closed cases See Appendix 1 (page 92) for figures. ANNUAL REPORT

4 EWOQ s priorities The Energy and Water Ombudsman Queensland (EWOQ) was first established as the Energy Ombudsman Queensland (EOQ) on 1 July 2007, to provide a free and independent dispute resolution service for small electricity and reticulated gas customers in Queensland. On 1 January 2011, our jurisdiction was expanded to investigate disputes about water suppliers in South East Queensland, and EOQ became EWOQ. We are committed to providing an effective, high-quality, fair and confidential service for residential and small business customers who have been unable to resolve a problem with their electricity, gas or water supplier. With offices in Brisbane, Cairns and Rockhampton, we can work directly with Queensland customers and suppliers to investigate and resolve disputes. Vision A high performing, independent organisation making a valued contribution to an efficient and fair energy and water sector. Mission To serve the people of Queensland by providing a timely, effective, independent and just way of resolving disputes with their energy and water supplier. Values Commitment We set high standards and expectations We are open and transparent We are responsive to change We position ourselves for the future Collaboration We seek, provide and act on feedback from stakeholders and staff We work together to achieve our vision We empower and trust each other We support honest and robust conversations Excellence We provide a rich learning environment We encourage and embrace innovation We are an employer of choice 2 energy+water ombudsman QUEENSLAND

5 EWOQ s priorities Our role The primary functions of EWOQ are to: receive, investigate and facilitate the resolution of disputes between Queensland s small energy customers, small water customers in South East Queensland and their energy and water retailers and distributors promote the services of EWOQ to all eligible customers throughout Queensland identify systemic issues arising out of complaints received from customers. We achieve this through a process which is free, fair, independent, accessible, accountable, effective and efficient. We take into account the rights and responsibilities of customers and scheme participants under relevant legislation, codes and standards to achieve a fair and reasonable outcome. Our structure EWOQ was established under the Energy and Water Ombudsman Act 2006 (the Act) to provide for the investigation and resolution of particular disputes involving energy and water suppliers. The Energy and Water Ombudsman (the Ombudsman) is not subject to direction by anyone, however, must consider the advice of the Advisory Council to the Energy and Water Ombudsman (Advisory Council) (pg. 8) in performing certain functions under the Act. The Executive Management Group (pg. 49) assists the Ombudsman in the stewardship of EWOQ. Strategic direction Each year EWOQ develops a Strategic Plan (pg. 16) which guides our work and confirms our vision for the Office. The risks to meeting our objectives under the Strategic Plan are: loss of confidence in our effectiveness by residents and small business owners, scheme participants and government substantial variations in the number of complaints to our Office significant changes in markets and/or regulatory environment attraction and retention of qualified staff. This year we focused on the following key priorities: achieving best practice in the resolution of disputes between scheme participants and small customers raising awareness and proactively promoting our services to small energy and water customers, with an emphasis on Aboriginal people, Torres Strait Islanders, multicultural groups and the aged identifying systemic issues implementing the National Energy Customer Framework from 1 July 2015, which incorporated updating our dispute resolution policies and best practice documentation expanding our jurisdiction to include small businesses using up to 160 megawatt hours of electricity per year becoming a recognised external dispute resolution scheme under the Privacy Act by the Office of the Australian Information Commissioner conducting a review of our funding model aimed at improving the way in which we bill our scheme participants preparing for the commencement of deregulation of the electricity industry in South East Queensland on 1 July 2016 conducting our biennial customer and staff satisfaction surveys redesigning our website with a view to being more customer focused implementing a telephone recording system to enable us to monitor, and continuously improve, the standard of service we provide to our customers commencing a new, whole-of-office staff performance management and development framework. A review of our performance against the Strategic Plan is on pg. 16. Into the future We continually review our business processes and customer service to ensure we are delivering a timely, effective, independent and just dispute resolution service to the people of Queensland. While we await the appointment of an Ombudsman who will guide our vision into the future, we will continue to focus on some key projects in the coming financial year including: reviewing and implementing recommendations from the review of our funding model undertaking a significant version upgrade to our case management system further developing strategies to address the impacts of the fall in complaint numbers. This was a trend which was seen across the country by all dispute resolution schemes, which is anticipated to stabilise with no further declines. ANNUAL REPORT

6 Energy and Water Ombudsman s Message In we have seen a downward complaint trend continue with the number of complaints being referred to the Office falling at a comparable rate to what we experienced in the previous financial year. The decrease in complaint numbers can be attributed in part to retailers resolving their ongoing problems with billing delays and billing system errors that occurred following large billing migration projects undertaken by retailers in previous years. As a result we are now seeing a normalisation of the complaint levels back to the pre-billing migration project levels. While the Energy and Water Ombudsman Queensland (EWOQ) has seen a drop across all of our complaint categories, billing and credit related complaints have continued to dominate the issues dealt with by the Office in The Office has continued to achieve fair and reasonable resolutions for Queensland customers including monetary outcomes of over $772,000 this financial year. As an industry Ombudsman scheme our role includes working to improve the performance of the industry in dealing with their customers. The reduction in the number of complaints made to the Office this financial year is also an indication of the improved performance of the industry participants in resolving customer complaints through their internal dispute resolution processes. The results of an independent customer satisfaction survey of EWOQ undertaken in 2015 were very pleasing. Even though the survey found that 51 per cent of customers believed their result was in their favour, 87 per cent of customers were satisfied with the services they received from EWOQ and 93 per cent of customers would recommend the services of EWOQ to a friend. This was a positive endorsement of the independence of the Office and the work undertaken by EWOQ staff. This year saw the expansion of our jurisdiction from 1 January 2016 to take on complaints from high energy using small business customers who consume up to 160 megawatt hours per annum. The Energy and Water Ombudsman Act 2006 was also amended in to extend the functions of EWOQ. The Office is now recognised as an external dispute resolution scheme that deals with credit reporting complaints in relation to the misuse of customer credit information by electricity and gas scheme participant providers. The Office of the Australian Information Commissioner approved EWOQ s recognition as an External Dispute Resolution scheme from 1 January 2016 under s.35a of the Privacy Act Thanks must go to the EWOQ Advisory Council for the advice they have provided to the Office over the past 12 months. I would like to thank the former Chairperson of the Advisory Council Ms Julie-Anne Schafer who left the Council in November 2015 and welcome new Chairperson Ms Anna Moynihan who joined the Council in February I would also like to express my appreciation to our former Ombudsman Mr Forbes Smith who left midway through this year after four and half years at the helm. Finally, I would like to thank the staff of EWOQ for their ongoing commitment to contributing to a fair, equitable and responsive energy and water sector in Queensland. John Jones Acting Energy and Water Ombudsman 4 energy+water ombudsman QUEENSLAND

7 Our customers and their issues Top 5 monetary outcomes EWOQ helped 217 Queenslanders gain access to a Payment Plan or Payment Extension 76 debt waivers ($66,235) 217 payment plans or extensions offered ($84,670) 106 refund cheques ($105,393) 419 goodwill gestures ($112,424) EWOQ negotiated 419 goodwill gestures for customers as well as billing adjustments to the value of $320,284 I am absolutely delighted with the result! The staff member I had an issue with has been coached on his communication skills and the $47.35 charge has been waived. (Retailer) has provided me with information to better understand my gas bill and provided me with information about the issues I was faced with. With just one call to you, all my issues have been resolved. [Customer] 224 billing adjustments ($320,284) ANNUAL REPORT

8 Advisory Council Chair s Message There has been a changing of the guard during this year, and I commenced as the new Chair of the Advisory Council to the Energy and Water Ombudsman Queensland (EWOQ) in February 2016, following on from Ms Julie-Anne Schafer. In the relatively short term I have been in the role, I am impressed with the professionalism and spirit of collaboration between the Office of the Ombudsman and the Council, notably Acting Ombudsman Mr John Jones and his senior and support staff. This goodwill is also evident within the Council itself. This year Council consumer representatives Ms Carly Hyde (Queensland Council of Social Service) and Mr Mark Tucker-Evans (Council of the Aging) completed their term, as did Ergon Energy representative, Ms Tanya Acheson and Gold Coast City Council nominee Mr Mark Harvey. New members who have joined the Council this financial year are Mr Andrew Bills (Origin Energy), Ms Kate Farrar (QEnergy), Mr Michael Kenyon (Logan City Council), and Ms Paula Wilmot (Energex). Long-standing consumer representative Mr Ian Jarratt, and Family Business Australia nominee Mr Michael Gordon, continue to offer the Council expert advice and support. So overall for the Council it has been a time of change. This has also been a feature of the external environment. The National Energy Customer Framework was introduced in Queensland on 1 July Known as the NECF, this significant framework is part of a national regime designed to reduce the regulatory burden on the energy industry, and importantly, boost customer protections. Another development occurred on 1 January 2016, when the Queensland Government provided stronger support for small businesses, community groups and sporting clubs. This involved increasing EWOQ s threshold for investigating complaints from 100 megawatt hours of electricity per annum to 160 megawatt hours per annum. Also in the latter part of this financial year, EWOQ was recognised as an external dispute resolution scheme, expanding the role of the Office to include investigating and resolving credit information complaints. This year, I am pleased to report that EWOQ s quality of service has been maintained in the face of a number of changes to the energy industry and EWOQ s jurisdiction during the reporting period. The biennial Customer Satisfaction Survey results show that the majority of customers are satisfied with EWOQ (87 per cent) and are highly likely to recommend EWOQ (93 per cent) to a friend or relative. A personal recommendation is a good reflection on quality and satisfaction. During the year, the Council continued its key role of monitoring the Ombudsman s independence, and providing advice on policy and procedural issues relevant to the Energy and Water Ombudsman Act A recurring discussion around the Council table has been how EWOQ can and should adjust to reduced customer complaints, a trend repeated in Perhaps this is reflecting a new normal for the scheme, in which case I am sure it will still occupy our agenda in the coming year. I would like to thank Council members for their expertise and readiness to contribute to the important work of EWOQ. On behalf of the Advisory Council, we look forward to working with the new Ombudsman and staff as EWOQ continues its valuable contribution as a dispute resolution scheme. Anna Moynihan Chair 6 energy+water ombudsman QUEENSLAND

9 Our customers and their issues Who contacted EWOQ? The number of complaints from small business customers was 5%. 1 government 424 small business 8470 residential Complaints from residential customers made up 95% of all complaints; no change from Customer profile See Appendix 1 (page 92) for figures. I would just like to express my gratitude for all the hard work you have put into my case. It is reassuring to know there are effective organisations that safe-guard and make accountable these companies in their dealings with the general public. Nevertheless, the outcomes can only be achieved by having dedicated and professional people such as yourself on staff. Once again many thanks for all your hard work on my behalf. [Customer] ANNUAL REPORT

10 Advisory Council to the Energy and Water Ombudsman The Advisory Council to the Energy and Water Ombudsman (Advisory Council) provides expert advice to the Energy and Water Ombudsman and the Minister responsible for energy and water on the effective and efficient conduct and operation of the EWOQ scheme. This helps to ensure the scheme is administered in a manner which is fair and just to consumers and suppliers. The Advisory Council: monitors the Ombudsman s independence advises the Ombudsman on policy, procedural and operational issues relating to the Act advises the Minister responsible for energy and water on the funding of the Ombudsman s functions at the end of the financial year, advises the Minister on the Ombudsman s independence and functions of the Office during the financial year. The Advisory Council generally meets every two months and consists of an independent chair and at least six other members appointed by the Minister. The other members must consist of members drawn from scheme participants who represent the interests of industry members; and an equal number of members drawn from groups who represent the interests of consumers. Under the Energy and Water Ombudsman Act 2006, at least two of the industry members must represent the interests of energy retailers and at least one must represent the interests of energy distributors. Further, at least one industry member must represent the interests of scheme participants that are water entities. Members must be appointed on the Chair s recommendation, after consultation with scheme participants, consumer groups and community welfare organisations members Chair: Julie-Anne Schafer (to November 2015) Anna Moynihan (from February 2016) Industry representatives: Andrew Bills Origin Energy Kate Farrar QEnergy Michael Kenyon Logan City Council (from February 2016) Paula Wilmot Energex (from January 2016) Tanya Acheson Ergon Energy (to December 2015) Mark Harvey City of Gold Coast (to September 2015) Consumer representatives: Ian Jarratt Queensland Consumers Association Michael Gordon Family Business Australia Carly Hyde Queensland Council of Social Service (to December 2015) Mark Tucker-Evans Council on the Ageing Queensland (to September 2015) 8 energy+water ombudsman QUEENSLAND

11 Our customers and their issues Time taken to resolve complaints 1% over 90 days 99% less than 90 days 98% less than 60 days We again exceeded our service standard targets for this year. 92% less than 28 days EWOQ closed 8201, or 92% of complaints in less than 28 days, against a target of 80% Time taken to resolve complaints See Table 2 (page 12) for figures and targets. We have seen some great successes through your office and really appreciate the service you provide. It is great being able to refer constituents to you, rather than having to direct complaints through a ministerial office which is always a lengthy process. You are always very prompt to assist. Thank you. [State Member] ANNUAL REPORT

12 Dispute resolution process EWOQ s approach is informal and based on the principles of alternative dispute resolution. Essentially, we look to establish the facts and issues to help the customer and their supplier better understand the problem and each other s point of view. The outcome may be achieved by agreement between the customer and the supplier, or through conciliation. Our jurisdiction EWOQ was established to assist small customers who can be classed as those whose electricity consumption is under 160 megawatt hours a year and gas consumption is under one terajoule a year. In South East Queensland, we can assist all residential water customers and small businesses with water consumption under 100 kilolitres a year. We are able to investigate unresolved disputes about: problems with payment account errors/disputes disconnections/restrictions damages and loss energy marketing energy contract issues vegetation management supply quality and reliability extensions to supply connection of supply customer service issues guaranteed service levels equipment issues burst pipes, leaks, blockages and spills. In we saw the expansion of our jurisdiction to include small businesses using up to 160 megawatt hours (up from 100 megawatt hours) of electricity per year. In addition, EWOQ became a recognised external dispute resolution scheme under the Office of the Australian Information Commissioner, enabling us to handle disputes regarding privacy breaches by energy companies and credit reporting bodies. There are a number of complaints that EWOQ cannot investigate and/or fall within the jurisdiction of other government authorities. We cannot investigate complaints about: energy or water suppliers if the customer has not tried to resolve the matter with them first the fixing of prices or tariffs a customer contribution to the cost of capital works products such as air conditioners, hot water systems, solar panels and home electrician services offered by electricity retailers on-selling of energy or water to tenants in caravan parks, retirement villages and other multi-tenanted dwellings bottled LPG (liquefied petroleum gas) electricity consumption over 160 megawatt hours a year gas consumption over one terajoule a year water consumption over 100 kilolitres a year for small businesses water issues outside the service areas of Gold Coast City Council, Logan City Council, Redland City Council, Queensland Urban Utilities or Unitywater metered standpipes, raw water supplies, tradewaste, storm-water harvesting or stand-alone recycled water. For disputes outside of EWOQ s jurisdiction, Memoranda of Understanding (MoU) have been formalised between EWOQ and the following agencies to facilitate the timely exchange of information and referral of cases which are outside of our jurisdiction to investigate: Queensland Ombudsman Department of Energy and Water Supply Australian Competition and Consumer Commission Australian Energy Regulator Queensland Competition Authority Office of Fair Trading Australian Energy Market Commission. Quality assurance EWOQ conducts a number of quality assurance (QA) assessments annually to ensure that EWOQ s case management practices are accurate, efficient and of a high standard. QA assessments aim to: ensure that EWOQ s operational staff apply our case handling policies and procedures consistently and appropriately ensure that the outcomes achieved across the investigative teams are consistent, of a high quality and fair and reasonable assist Senior Management in evaluating and improving the performance of staff provide an opportunity to identify areas where EWOQ s operational policies and procedures can be improved. 10 energy+water ombudsman QUEENSLAND

13 Dispute resolution process In , we conducted QA assessments on: compliance with business procedures for the naming of documents in EWOQ s complaints management system compliance with business procedures for the recording of outcomes of complaints lodged with EWOQ compliance with business procedures for the accurate recording of time within EWOQ s complaint management system compliance with business procedures for the recording of main screen data in the complaints management system the recording of complaints with customer alerts which recognise the needs and behaviours of the customer and what assistance may be required. These assessments led to improvements to EWOQ s case handling policies and procedures, and further training and development for staff. How we handle disputes All contacts with EWOQ are called cases, and are dealt with in one of the following ways: as a general enquiry about electricity, water, gas or other issue that is not a complaint referred back to the energy or water supplier because the customer has not attempted to resolve the matter before coming to EWOQ referred to another organisation with whom we have a MoU because the complaint is outside EWOQ s jurisdiction registered as a Complaint and assigned to a dedicated Investigation and Conciliation Officer. Complaint stages Step 1: Referral to higher level or investigation Once a case has been assigned to an Investigation and Conciliation Officer, the Officer will discuss the resolution options with the customer. The customer may choose to have EWOQ refer their complaint to a higher level within the energy or water supplier, or begin an investigation. Referral to Higher Level (RHL) This process gives the customer the option to escalate their complaint to a higher level within the energy or water supplier. When this option is chosen, EWOQ will prepare an RHL Notice that provides a summary of the customer s issue and requires the supplier to contact the customer within five business days. If contact is not made, or the problem remains unresolved, customers can request an investigation by EWOQ. Step 2: Investigation To assist in investigations, we will request information from the customer s energy or water supplier such as: account records copies of letters and other correspondence technical reports details of any offers of settlement such as an apology offers of compensation or a goodwill payment reasons for the decision made by the supplier regarding the complaint. We may also request further action from the customer s supplier such as a meter test. Where our investigations disclose that the supplier s actions were appropriate the complaint will be closed, and the parties advised of the decision and our reasons. Where some error has been found we will try to negotiate a suitable outcome, for example: a payment plan for an overdue account reconnection of energy supply, or compensation for damage to equipment or property. Step 3: Determination If EWOQ cannot achieve informal resolution of the complaint there are a number of ways the matter can be finalised. Firstly, a decision can be made under s. 22 of the Act to not investigate or to discontinue the investigation. There were 18 cases finalised this way in Secondly, if a matter cannot be resolved via negotiation or conciliation, the Energy and Water Ombudsman may decide to make a final order requiring an energy or water supplier to take certain action. Among other things, the Ombudsman can order energy and water suppliers to: pay compensation provide a non-monetary solution to remedy the dispute amend a stated charge under the Act cancel a negotiated contract perform corrective work. No final orders were issued in ANNUAL REPORT

14 Scheme performance Forty one per cent of all referrals were to the Queensland Energy and Water Regulator, down from 48 per cent last year. Referrals to the Office of Fair Trading account for 40 per cent of all referrals this year, compared to 45 per cent last year. Performance against service standards We again exceeded our service standards. The percentage of complaints closed in less than 28 days has remained the same as last year, however we saw improvements in the percentage of cases closed in less than 60 and less than 90 days. The proportion of cases still open after 90 days decreased back to one per cent following an increase last year due to difficulties experienced in resolving Sanctuary Energy cases in a timely way. Independent review In addition to its legislative obligations, EWOQ has been designed to meet or exceed the principles of an effective customer dispute resolution scheme contained in the Benchmarks for Industry-Based Customer Dispute Resolution Schemes 1997 (National Benchmarks). Benchmark 6.11 provides that the operation of a customer dispute resolution scheme should be reviewed within three years of its establishment, and regularly thereafter, by an independent party. A review of the Energy Ombudsman Queensland was first conducted in 2010, and in 2013 a second review of the EWOQ was conducted. The 2013 review found that the office was performing highly effectively, providing quality dispute resolution services, and exceeding all of the National Benchmarks. The review made a number of recommendations designed to improve the Office s performance, the majority of which were accepted by EWOQ. In the implementation of the recommendations was finalised, with the final recommendation to review our funding model completed this year. Further to the National Benchmarks, after this year becoming an External Dispute Resolution (EDR) scheme recognised by the Office of the Australian Information Commissioner, EWOQ is now required to provide the Commissioner with an independent review of the scheme at least once every five years. In light of the change in Ombudsman and the additional EDR requirements, the Advisory Council has decided to defer the next review (which was originally planned for 2016) to The report for the 2013 Independent review can be accessed at Table 1: Cases referred to other organisations Agency Australian Competition and Consumer Commission n/a n/a n/a 2 6 Queensland energy and water regulator* 502 1, Office of Fair Trading 613 1,174 1, Queensland Ombudsman Queensland Competition Authority Australian Energy Regulator** Total 1,175 2,348 2,256 1,752 1,468 * Includes the Department of Energy and Water Supply and Queensland Water Commission and as of 2014 referred to as the Queensland Energy and Water Regulator. ** From 1 July 2015, the regulator for energy retailers moved from the Department of Energy and Water Supply to the Australian Energy Regulator. Table 2: EWOQ performance targets time taken to resolve complaints Target Less than 28 days 80% 12,120 90% 12,889 91% 12,901 90% 10,148 92% 8,201 92% Less than 60 days 90% 12,923 96% 13,697 97% 13,852 97% 10,694 97% 8,681 98% Less than 90 days 95% 13,260 98% 13,932 99% 14,105 99% 10,818 98% 8,808 99% Over 90 days < 95% 262 2% 164 1% 177 1% 231 2% 87 1% 12 energy+water ombudsman QUEENSLAND

15 Scheme performance 0 >1 >21 >51 >101 >201 >501 >1001 Customer location For cases where an incident address has been provided, 82 per cent were from South East Queensland (SEQ). The local government area of Brisbane accounted for 38 per cent (or 1211 cases) of all these cases across the state, followed by the Gold Coast (629 cases or 20 per cent), Moreton Bay (394 cases or 12 per cent) and Sunshine Coast (302 cases or nine per cent). Figures are based on the incident address and exclude residential cases where the customer did not disclose a Queensland suburb/postcode or was from interstate or overseas, as well as non-residential cases. Variances in numbers are attributable to customers being overseas, interstate or not providing EWOQ with address details. For this report, SEQ is comprised of the following local government areas Brisbane, Logan, Gold Coast, Sunshine Coast, Ipswich, Redland and Moreton Bay. ANNUAL REPORT

16 Scheme performance General Enquiry Referral Refer back Figure 1: Closed case types See Appendix 1 (page 83) for figures. Referral to Higher Level Level 1 Invest. Level 2 Invest. Level 3 Invest. Final Order Figure 2: How customers contacted EWOQ Phone Website Other Case Types All case types fell this year with the exception of Level 2 Investigation cases which increased slightly by three per cent. Referral to Higher Level cases decreased by 33 per cent. Level 1 and 3 investigations also fell significantly, down 18 per cent and 56 per cent respectively. Unlike last financial year, EWOQ issued no Final Orders under the Act this year. Final Orders may be issued by the Ombudsman if a matter cannot be resolved via negotiation or conciliation (see pg. 11). Contact method See Appendix 1 (page 92) for figures. 14 energy+water ombudsman QUEENSLAND

17 Scheme performance Jul 15 Aug 15 Sep 15 Oct 15 Nov 15 Dec 15 Jan 16 Feb 16 Mar 16 Apr 16 May 16 Jun 16 Figure 3: Cases received and closed by year Figure 4: Cases received and closed by month Cases received Cases closed Cases received Cases closed Our performance See Appendix 1 (page 92) for figures. Thanks for all your assistance with this matter. I must say your service has been nothing short of excellent and you have kept me in the loop constantly. I will surely recommend your organisation to others in need of your service. Would have been nice if the outcome had been more favourable, but I know you did your very best, a rare commodity these days. [Customer] ANNUAL REPORT

18 Scheme performance Our performance against strategic plan The EWOQ Strategic Plan provides a four year road map for our organisation and contains our key priorities. Table 3 provides an overview of our achievements in Table 3: Performance measures and achievements Objective 1: Contribute to improved service delivery in the energy and water sector Strategy Performance indicators Achievements Resolve disputes in a timely way Identify and report systemic issues Collaborate with scheme participants to improve their customer service delivery Contribute to the development of legislation and policy in the energy and water sector Publish reports and data on the performance of scheme participants Cases dealt with in accordance with established standards Level of customer and scheme participant satisfaction with dispute resolution services provided Number of outcomes obtained for customers over time Number of reports concerning systemic issues which meet established content and timeliness standards Frequency and means of engagement with scheme participants Number of written submissions to government and regulators on policy issues and proposed legislation Objective 2: Foster a culture of excellence service standards met (pg. 12) customer satisfaction survey conducted on a biennial basis. In , 87% of customers rated our performance as satisfactory or better $772,302 in outcomes for customers 419 goodwill gestures obtained ($112,424) 31 systemic issues notices issued (pg. 18) systemic issues monitored monthly and reported to regulators regular attendance at energy and water forums and meetings with scheme participants, government bodies and regulators (pg. 20) three submissions written (pg. 20) Number of reports published annual report published and awarded Silver at the Australasian Reporting Awards complaint statistics updated on website monthly eight media releases issued Strategy Performance indicators Achievements Establish and maintain clear expectations and standards Develop and retain highly skilled staff Continuously improve our business practices Maintain a whole-of-office performance management framework Percentage of budget expended on staff training and development Staff consider they are well trained to undertake their role Number of improvements to service delivery implemented following surveys of customers and feedback from scheme participants Number of improvements to service delivery following internal quality assurance audits Number of changes implemented to our case management system to improve functionality customer satisfaction survey results published performance plans for all staff developed and reviewed annually up to 1% of salaries budget applied to training and development budget reviewed to ensure covering training requirements 2015 EWOQ Staff survey found staff felt capable of undertaking their role but wanted more relevant training. Plans to incorporate new training initiatives such as lunchbox talks and Q&A sessions (pg. 53) Energy and Water Ombudsman Queensland Act 2006 amended in response to scheme participant feedback to allow EWOQ to provide additional identifiable information to them to enable better reconciliation of financial reports policies and procedures reviewed annually to ensure best practice business operations surveys of customers and feedback from scheme participants is taken into consideration with any necessary improvements to service delivery 24 recommendations implemented to improve service delivery following quality assurance audits (pg. 10) 10 RESOLVE change requests received in eight requests were implemented and closed and four were not implemented and closed following consideration by the RESOLVE change management committee in seven requests remain open at the end of change request register maintained and monitored monthly 16 energy+water ombudsman QUEENSLAND

19 Scheme performance Table 3: Performance measures and achievements (continued) Objective 3: Adhere to the principles of independence and accountability in all we do Strategy Performance indicators Achievements Afford procedural fairness to customers and scheme participants in discharging the Ombudsman s functions Manage our Resources responsibly and transparently Maintain a constructive and open relationship with the Advisory Council Participation in national and international ombudsman networks Level of customer and scheme participant satisfaction 87% of customers rated our performance as satisfactory or better no allegations of failure to afford procedural fairness were made by customers or scheme participants Number and outcome of case reviews 18 section 22 letters sent to customers advising that no further investigation will be undertaken Unqualified audit report received from Queensland Audit Office Discharge responsibilities and functions within approved budget 12 appeal reviews undertaken to section 22 decisions (all appeal reviews confirmed) report provided annually financial delegations reviewed regularly and updated when required assessment included in performance management plans for all managers unqualified audit report received annually Maintain a Risk & Audit Committee two Audit and Risk Committee meetings held in Number of briefings to the Advisory Council Feedback from the Chair and members of the Advisory Council Number of meetings and conferences, and other engagement, with members of the Australian and New Zealand Ombudsman Association (ANZOA) and Australia and New Zealand Energy and Water Ombudsman Network (ANZEWON) Objective 4: Provide all Queenslanders with equal access to our service risk register maintained and monitored by Audit and Risk Committee six briefings provided at Advisory Council meetings positive feedback received from Council two ANZEWON meetings attended Strategy Performance indicators Achievements Promote the scheme throughout Queensland Establish and maintain stakeholder relationships Provide a comprehensive range of means by which to lodge complaints Deliver a consistent service across the State Implement the communications plan promoting our role throughout Queensland including to Aboriginal peoples, Torres Strait Islanders, multicultural groups, the aged and small business Proportion of complaints received from customers located outside South East Queensland Number of meetings, and other engagement, with stakeholders Level of stakeholder satisfaction with the nature and extent of their engagement with our office Number of complaints received by , on our website, or via our complaints portal Number of internal quality assurance audits conducted Level of scheme participant satisfaction with service Staff consider internal communication processes are effective Staff consider policies and procedures are comprehensive, up-to-date and accessible Deliver training and development program for staff regular staff attendance at ANZOA industry group meetings attended ANZOA members meeting and biennial ANZOA conference Communications plan developed, approved and implemented Indigenous Outreach Plan developed for the period 1 January June 2016 (pg. 47) 30% of complaints are received from customers in regional Queensland (based on customer address) regularly monitored by Executive Monitoring Committee 306 engagements at community events and stakeholder meetings across all Queensland regions (pg. 46) positive feedback received from stakeholders following meetings and presentations continued requests for return visits to further discuss issues 2,300 complaints received electronically ongoing maintenance of and updates to energy + water complaints portal redevelopment of EWOQ website five reports produced in (pg. 10) positive feedback received from scheme participants at energy and water forums no allegations of failure to afford procedural fairness were made by scheme participants 2015 EWOQ Staff Survey identified communication issues. Strategies to improve communications have been made by Executive Management Group and work has commenced to action these 2015 EWOQ Staff Survey noted staff satisfaction with policy resources consultative reviews of policies and procedures occurring regularly training and development meetings held monthly (pg. 52) ANNUAL REPORT

20 Systemic issues A systemic issue is a problem which a person has with an energy or water supplier that affects, or has the potential to affect, more than one customer. Some examples of a systemic issue include: a resident is misled by a door-to-door marketer who has been working in the person s neighbourhood. It is likely that a number of other people have also been misled by the same marketer. a customer identifies a billing error that may be common to many or all of the supplier s customer bills a number of customers experience delays in receiving their bills due to system errors. The issue may arise from a supplier s policy, processes or their application. It may be caused by a range of things in isolation or together. For example, a system change, an alteration in performance levels, a procedural change, lack of policy/procedure, or the conduct of a supplier s employees or contractors. Often, there is never one particular cause of a systemic issue. It can be a combination of a number of things human error, failure to have robust audit or verification processes, lack of adherence to procedures or policies, inadequate billing or IT systems, poor training, or unclear regulatory guidelines can all contribute to unsatisfactory performance that may be systemic in nature. Identifying and measuring systemic issues Potential systemic issues are identified in a number of ways: Our frontline investigative staff are tasked with monitoring customer complaints for potential systemic issues and identifying the complaint on Resolve, our case management system. Advisors attached to the Policy and Research Team (PRT) are tasked with reviewing the complaints identified by investigators and taking any necessary action. Our PRT also liaises closely with investigators to monitor trends in complaints. A Systemic Issues Monitoring Committee meets regularly to identify and discuss current and emerging systemic issues. Additionally, we are able to stay abreast of current and emerging systemic issues through the advice of the Advisory Council, our collaborative relationships with the energy and water suppliers, government agencies, and our Ombudsman colleagues in other jurisdictions. The number of potential systemic issues decreased by 20 per cent this year, from 74 last year to 59, which is consistent with the overall downward case trend for this year. In addition, there were no billing system changes or upgrades this year and door-to-door marketing practices have ceased, both of which have led to higher levels of systemic issues in the past. Table 4: Systemic issues Issue Billing Customer Service Other Marketing Provision Transfer Credit Supply Water Metering Total Resolving systemic issues While we do not possess any enforcement or prosecution powers, when a systemic issue is identified, we immediately advise the scheme participant concerned. We will then work with the scheme participant to resolve the issue by providing detailed information about the customers concerned and the nature of the issue, and advice as to how we would like to see the issue resolved, including steps to be taken to avoid a recurrence of the problem. EWOQ also advises the appropriate regulatory agency of any systemic issues that could, for example, constitute a breach of legislation, code or licence conditions. In , 31 systemic issues notices were issued. Depending on the issue, the identification of systemic issues may lead to: a redesign in products and services changes in organisational practices and procedures retraining staff on product and service delivery a reassessment of consumer information (e.g. labelling) a reassessment of the performance of after-sales service an early warning about potential product and service defects. 18 energy+water ombudsman QUEENSLAND

21 Systemic issues Gas abolishment process delay A customer contacted EWOQ following issues with their gas retailer. The customer was looking to have their gas supply abolished and after filling out the appropriate paperwork, had the request declined. The customer was advised that incorrect details had been provided, and a vacancy date for the property was not specified. Believing the information provided was correct and to clarify that they no longer had a need for gas but the property would remain occupied, the customer called the retailer. The customer was instructed over the phone as to how to complete the form, but expressed concern over the instructions as it differed to the explanatory notes on the form. Not long after submitting the form, the customer received further correspondence from the retailer again advising the form had been incorrectly completed. Frustrated, the customer raised a complaint with EWOQ. On investigation, the issue was flagged as a potential systemic issue. Usually, meter abolishment is a simple process that is undertaken regularly by retailers and delays such as the ones experienced by the customer indicate a greater issue. The retailer advised it had reviewed the contact notes for the customer and found that it was not a systemic issue, but rather human error. The retailer confirmed the customer had contacted them to arrange abolishment of the meter, however the retailer had a current Dear Customer account active for the site address. In this instance the retailer would generally assume that the site would be vacant. However as this was not the case, the staff member should have requested proof of ownership of the property, in the form of council rates or deed title. This is to ensure that the retailer is arranging abolishment for the correct address. The agent could then have written on the form GAS NO LONGER NEEDED, ensuring only the meter was abolished. The retailer advised feedback had been provided to the original staff member who completed the call. Quote range not accurate Over a number of months, EWOQ received complaints from customers that recently had underground power connected. In all cases, the customers had been quoted for the works and were advised the quote was inclusive of all costs and there would be no further charges from the electricity distributor. In one instance, the distributor had confirmed with the customer there would be no additional charges, but the customer then received a letter from their retailer advising a fee of up to $800 may be charged if the job was more complex and additional works were needed. The customer showed the letter to the contractor on his arrival to complete the works, and was advised the job was not complex and no additional fees should be charged. Shortly after, the customer received an invoice for $1800 from the retailer, which the retailer confirmed would need to be paid. EWOQ issued a systemic issue notice to the retailer in order to gain further insight into the retailer s processes when quoting a customer for works to be undertaken by the distributor. The retailer advised that the requests they receive from the distributor often do not have enough information for them to determine exactly what works are being carried out at the property. In addition, the information does not give the retailer a breakdown of the work that is being carried out at a property, or confirmation of the distributor s fee code. To resolve this, the retailer has always provided customers with a range for the fees and until August 2015 this range covered all of distributor s charges. Following a change to the distributor s pricing model after this date, the retailer has seen significant changes to the charges. The investigation found that unless the retailer received a detailed description of the works from the distributor, or the exact fees the distributor would be charging, they would need to continue to provide a quote range. Correct advice needed to quote solar tariffs After moving in to a new property, a customer contacted their preferred electricity retailer to enquire about solar energy contracts. The customer agreed to a contract that included a $0.44 rebate for their solar credits, but after receiving a confirmation with the new rates, the customer received another advising they were not entitled to the $0.44 rebate. On questioning this correspondence, the customer was told by the retailer that the state government paid the $0.44 and they could not provide any further information. A systemic notice was raised to see if the retailer identified any issues in their processes regarding the quoting of solar feed-in tariffs, and to seek an overview of the information the retailer provides new solar customers. The advice provided to the customer had been based on the information the customer had conveyed to the retailer s sales agent. It appeared that the customer had failed to advise they were moving in to the site, and had told the sales agent the existing solar rebate at the property was $0.44. The sales agent had assumed the customer was the existing owner of the property and as such advised the customer they would continue to receive the $0.44 solar rebate. However, as a new owner of the property they were no longer eligible for the $0.44 solar rebate and should not have been quoted this rate. Following the systemic notice, the retailer advised they were aware of the issue and had taken measures to ensure it would not happen again. ANNUAL REPORT

22 Contributing to public policy EWOQ is regularly consulted on policy and legislative reviews being conducted by government, not for profit organisations and other bodies. We are able to draw on our experiences with both customers and suppliers and provide feedback and comments on contemporary policy issues. In EWOQ contributed to public policy in the following ways: Meetings Participated in and addressed the Minister s Consumer and Industry Reference Group meetings. Attended water forums hosted by Unity Water, Logan City Council and Queensland Urban Utilities (QUU). Hosted the energy forum for all Queensland energy retailers and distributors to interact with one another and actively participate in forum discussions. Met with QUU and Kildonan Uniting Care, in relation to QUU s review of the management of vulnerable/ hardship cases. Met with the Australian Energy Regulator regarding regulatory issues and Queensland jurisdiction under the Energy and Water Ombudsman Act Attended the Australian New Zealand Energy and Water Ombudsman Network meeting to discuss emerging technologies in the energy sector and the future role of Ombudsman schemes. Submissions To the Queensland Competition Authority on their Draft Enforcement Guidelines. To the Queensland Productivity Commission on Electricity Pricing in Queensland Issues Paper. To the Department of Energy and Water Supply on the Regulatory Impact Statement On-supply customer access to energy rebates and the Energy and Water Ombudsman Queensland. Liaison with the Department of Energy and Water Supply Discussed potential changes to EWOQ s jurisdiction. Discussed the Vulnerable Customers Project. Discussed Bulk Hot Water Complaints. Participated in a workshop on final draft of the Customer Water and Wastewater Code. Liaison with the Australian Energy Market Operator Provided de-identified statistical data to the Australian Energy Market Commission (AEMC) in relation to proposed rule change requests for improving the speed of transfers and improving accuracy of transfers. Provided de-identified data to AEMC in relation to their annual Retail Competition Review. 20 energy+water ombudsman QUEENSLAND

23 The figures and the issues Billing complaints fell by 18 per cent from 4137 cases last year to 3388 this year, reaching a five year low. Credit complaints also decreased significantly, down 31 per cent from last year. Customer service complaints decreased by 27 per cent this year, due to the absence of any predominant issues. Marketing, Transfer and Provision complaints reached five year lows this year. Transfer complaints declined by 46 per cent, followed by Marketing complaints which were down 38 per cent on last year. Supply complaints increased by 58 per cent predominantly due to a rise in complaints about Variation of Supply.. Table 5: Closed complaints by primary issue Billing 5,868 6,299 5,556 4,137 3,388 Credit 1,302 1,440 2,598 2,118 1,467 Customer service 1, , Provision Transfer Supply Other Land Marketing ANNUAL REPORT

24 Electricity There were 5765 electricity complaints closed this year, a decrease of 1785 on last year. Of these, 50 per cent were referred back to scheme participants as the issue had not been raised with them before; and 30 per cent were referred to a higher level within the scheme participant for another attempt at direct resolution. The balance (20 per cent) was investigated by EWOQ. Table 6: Closed electricity complaints by primary issue and case type Primary issue Refer Back Referral to Higher Level Investigation Total Billing 1, ,940 Credit ,385 Customer Service Provision Transfer Supply Other Marketing Land Grand Total 2,892 1,712 1,161 5,765 Just over half (51 per cent) of all electricity complaints related to billing issues which were down by 20 per cent compared to last year. Credit complaints accounted for 24 per cent of electricity complaints, followed by customer service which made up 12 per cent of complaints. With only two exceptions, all complaint categories were down this year; transfer issues by 46 per cent, marketing complaints by 39 per cent, and credit and customer service issues by 30 per cent. The exceptions were in the other category which increased by 28 cases from last year (30 per cent) and in supply cases which increased by 47 cases (55 per cent) compared to energy+water ombudsman QUEENSLAND

25 Electricity 26 land 30 marketing 121 other 133 supply 180 transfer 277 provision 673 customer service 1385 credit Credit complaints accounted for 24% of electricity complaints, followed by customer service with 12% of complaints 2940 billing Number of credit complaints See Table 6 (page 22) for figures I would like to express my gratitude and thanks for all the work you have done for me regarding my complaint. You explained in detail to me what the outcome was and why, which I really appreciate. Again thank you very much for your assistance with this matter. [Customer] ANNUAL REPORT

26 Electricity saw large declines in the number of Transfer (down 51 per cent), Customer service (down 47 per cent) and Marketing complaints (down 75 per cent). Table 7: Electricity investigations by primary and secondary issues Primary issue Secondary issue Billing High Error Backbill Other Estimation Meter Tariff Delay Fees & charges Refund Rebate/concession Re-Bill Total 1,093 1,057 1, Credit Collection Disconnection/restriction Payment difficulties Total Transfer Without consent Delay In error Site ownership Objection/rejected by retailer Cooling off rights Billing Contract terms Total Provision Existing connection Disconnection/restriction New connection Total Customer service Refund Poor service Incorrect advice or information Failure to consult or Inform Failure to respond Poor/unprofessional attitude Privacy Total Supply Variation Off supply (unplanned) Quality Off supply (planned) Total Marketing Misleading Contract Other Information Non account holder Pressure/coercion Total Land Other Network assets Vegetation management Wayleave Agreement Total Grand Total 1,903 1,712 2,202 1,490 1, energy+water ombudsman QUEENSLAND

27 Electricity Restricted access causes estimated bills The customer was receiving estimated reads as access to his property was restricted by a large fence, electric gate and guard dogs. The customer was aware that there were access issues and had requested that the distributor call him when they needed access, however the distributor was not able to keep to an appointment time. As a result of a number of estimated reads, the customer had received a bill of $3416 for a 13 month period. Frustrated with the reasons provided for estimated reads, the customer contacted EWOQ for assistance. Outcome: EWOQ advised the customer that under the Electricity Industry Code the retailer must ensure an actual meter read is carried out every 12 months. After liaising with the retailer, EWOQ was able to negotiate an out of code adjustment to the customer s account totalling $834 and adjust the estimated reads to actual. The customer agreed to a payment arrangement of $100 per fortnight and was placed on the retailer s hardship program and provided with the application forms for the Home Energy Emergency Assistance Scheme. Concerned about receiving estimated reads in the future, the customer queried if he could submit self-reads. The distributor agreed however the retailer reserved the right to use the self-meter reads at their discretion. Retailer established account without consent The customer, an apartment block owner, was concerned about charges relating to an electricity account established for the complex that had been sold to a third party collection agency. Having never established an electricity account for the entire complex, the customer was unsure of what the charges related to or how the account came to be in his name. Further to this, the customer advised that he had not received any contact from the retailer in relation to the outstanding amount. On contacting the electricity retailer, the customer was informed that the charges may relate to billing periods between 2010 and Not believing that the electricity retailer would allow the supply of electricity to continue for three years without any payment, the customer was concerned about the authenticity of the account and contacted EWOQ. Outcome: On investigation, EWOQ found that the electricity usage related to consumption in common areas of the apartment complex, known as community power. The electricity retailer advised that an account was established after the customer contacted them in 2011, and all invoicing had been issued to the correct mailing address. Although no payments had been received, the distributor would not complete a disconnection request from the retailer for community power due to safety concerns. After further review of the information provided by the electricity retailer, EWOQ established that the person who contacted the electricity retailer could not have provided consent on behalf of the customer to establish the account and the electricity retailer did not have any personal identifying information relating to the customer. Further to this, there did appear to be a mailing address provided that related to the customer however, the electricity retailer did not associate the mailing address with the account and therefore correspondence was being posted to the supply address. EWOQ found that the electricity retailer did not act appropriately when mail was returned to sender and the customer had no way to reasonably be able to receive any of the correspondence relating to the account. Due to these circumstances, the retailer agreed to issue a request to the third party credit collection agency to return the debt and remove the default listing. In addition, the retailer waived the customer s entire debt. Customer debt listed after data mix up Five years after closing her electricity account, a customer received a letter from a debt collector advising that she owed $1698 in outstanding electricity charges and she had been default listed. The customer had set up numerous other accounts with the retailer during this time and had never been notified of any outstanding debts. On contacting the retailer to resolve the issue, she was told that they had no record of the customer s requests to close the account and that as such, the default listing would not be removed. Disappointed with this outcome, the customer contacted EWOQ. Outcome: On initial contact from EWOQ, the retailer again confirmed that they had no record of any requests to close the account. The retailer also advised that when the customer had set up subsequent accounts she hadn t informed them of her other accounts and subsequently wasn t informed of any outstanding debts. Adamant she had closed the account, the customer refused this justification. EWOQ decided to request further information from the retailer regarding all the addresses the customer had established accounts for since the debt arose. During this review, the retailer found the address with the outstanding debt had been received from another retailer during a takeover. The retailer advised that the address actually had another customer name attached to it, but the billing account name had not been updated and as such the customer had received the debt listing. The retailer confirmed that the charges related to another customer and as such, they would reverse the default listing and close the customer s account with a zero balance. ANNUAL REPORT

28 Electricity Electricity retailers Electricity retailer complaints decreased by 25 per cent, (the same decrease as experienced in the financial year), down to 5374 from 7184 last year. Table 8: Closed electricity retailer complaints by primary issue Primary issue Scheme participant Billing Origin Energy Electricity Ltd 3,115 3,283 2,257 1,365 1,057 AGL Sales (Queensland Electricity) Pty Ltd Ergon Energy Qld Pty Ltd EnergyAustralia Pty Ltd Powerdirect Pty Ltd Lumo Energy (Qld) Pty Ltd Click Energy Pty Ltd QEnergy Pty Ltd Sanctuary Energy Pty Ltd Dodo Power & Gas Pty Ltd Simply Energy Diamond Energy Pty Ltd Momentum Energy Pty Ltd Australian Power and Gas Pty Ltd TRUenergy Pty Ltd Total 5,001 5,716 5,075 3,691 2,938 Credit Origin Energy Electricity Ltd ,056 1, AGL Sales (Queensland Electricity) Pty Ltd Ergon Energy Qld Pty Ltd EnergyAustralia Pty Ltd Lumo Energy (Qld) Pty Ltd Click Energy Pty Ltd Powerdirect Pty Ltd Dodo Power & Gas Pty Ltd Simply Energy Momentum Energy Pty Ltd QEnergy Pty Ltd Locality Planning Energy Pty Ltd Sanctuary Energy Pty Ltd Australian Power and Gas Pty Ltd TRUenergy Pty Ltd Total 1,178 1,334 2,463 1,996 1,385 Transfer Origin Energy Electricity Ltd AGL Sales (Queensland Electricity) Pty Ltd EnergyAustralia Pty Ltd Click Energy Pty Ltd Powerdirect Pty Ltd Lumo Energy (Qld) Pty Ltd Dodo Power & Gas Pty Ltd QEnergy Pty Ltd Ergon Energy Qld Pty Ltd Diamond Energy Pty Ltd Sanctuary Energy Pty Ltd Simply Energy Australian Power and Gas Pty Ltd TRUenergy Pty Ltd Total TRUenergy was renamed as EnergyAustralia on 1 December From May 2014 Australian Power and Gas customers were migrated to AGL 26 energy+water ombudsman QUEENSLAND

29 Electricity Table 8: Closed electricity retailer complaints by primary issue (continued) Primary issue Scheme participant Customer Service Sanctuary Energy Pty Ltd Origin Energy Electricity Ltd AGL Sales (Queensland Electricity) Pty Ltd Ergon Energy Qld Pty Ltd EnergyAustralia Pty Ltd Lumo Energy (Qld) Pty Ltd Powerdirect Pty Ltd Dodo Power & Gas Pty Ltd Click Energy Pty Ltd QEnergy Pty Ltd Simply Energy Diamond Energy Pty Ltd Urth Energy Pty Ltd Australian Power and Gas Pty Ltd TRUenergy Pty Ltd Total 1, Provision Origin Energy Electricity Ltd AGL Sales (Queensland Electricity) Pty Ltd EnergyAustralia Pty Ltd Ergon Energy Qld Pty Ltd Lumo Energy (Qld) Pty Ltd Powerdirect Pty Ltd Click Energy Pty Ltd Momentum Energy Pty Ltd Sanctuary Energy Pty Ltd Dodo Power & Gas Pty Ltd Simply Energy Diamond Energy Pty Ltd QEnergy Pty Ltd Australian Power and Gas Pty Ltd TRUenergy Pty Ltd Total Billing complaints decreased by 20 per cent even though some retailers Ergon Energy, Lumo Energy and Powerdirect experienced a modest rise in billing complaints. Marketing AGL Sales (Queensland Electricity) Pty Ltd Origin Energy Electricity Ltd Dodo Power & Gas Pty Ltd EnergyAustralia Pty Ltd Lumo Energy (Qld) Pty Ltd Click Energy Pty Ltd QEnergy Pty Ltd Red Energy Pty Ltd Powerdirect Pty Ltd Simply Energy Ergon Energy Qld Pty Ltd Sanctuary Energy Pty Ltd Australian Power and Gas Pty Ltd TRUenergy Pty Ltd Total TRUenergy was renamed as EnergyAustralia on 1 December From May 2014 Australian Power and Gas customers were migrated to AGL ANNUAL REPORT

30 Electricity Table 8: Closed electricity retailer complaints by primary issue (continued) Primary issue Scheme participant Other Ergon Energy Qld Pty Ltd Origin Energy Electricity Ltd AGL Sales (Queensland Electricity) Pty Ltd Dodo Power & Gas Pty Ltd EnergyAustralia Pty Ltd Powerdirect Pty Ltd Lumo Energy (Qld) Pty Ltd QEnergy Pty Ltd Click Energy Pty Ltd Sanctuary Energy Pty Ltd Australian Power and Gas Pty Ltd TRUenergy Pty Ltd Total Grand Total 9,097 9,204 9,598 7,184 5,374 1 TRUenergy was renamed as EnergyAustralia on 1 December From May 2014 Australian Power and Gas customers were migrated to AGL Table 9: Closed electricity complaints by retailer Scheme participant Primary issue Origin Energy Electricity Ltd Billing 3,115 3,283 2,257 1,365 1,057 Credit ,056 1, Customer service Marketing Other Provision Transfer Total 5,142 4,813 4,026 2,828 2,058 AGL Sales (Queensland Electricity) Pty Ltd Billing Credit Customer service Marketing Other Provision Transfer Total 1,370 1,275 1,495 1,428 1,109 EnergyAustralia Pty Ltd 1 Billing Credit Customer service Marketing Other Provision Transfer Total - 1,063 1, TRUenergy Pty Ltd 1 Billing Credit Customer service Marketing Other Provision Transfer Total 1, TRUenergy was renamed as EnergyAustralia on 1 December From May 2014 Australian Power and Gas customers were migrated to AGL 28 energy+water ombudsman QUEENSLAND

31 Electricity Table 9: Closed electricity complaints by retailer (continued) Scheme participant Primary issue Ergon Energy Qld Pty Ltd Billing Credit Customer service Marketing Other Provision Transfer Total Lumo Energy (Qld) Pty Ltd Billing Credit Customer service Marketing Other Provision Transfer Total Australian Power Billing and Gas Pty Ltd 2 Credit Customer service Marketing Other Provision Transfer Total Click Energy Pty Ltd Billing Credit Customer service Marketing Other Provision Transfer Total Powerdirect Pty Ltd Billing Credit Customer service Marketing Other Provision Transfer Total QEnergy Pty Ltd Billing Credit Customer service Marketing Other Provision Transfer Total TRUenergy was renamed as EnergyAustralia on 1 December From May 2014 Australian Power and Gas customers were migrated to AGL ANNUAL REPORT

32 Electricity Table 9: Closed electricity complaints by retailer (continued) Scheme participant Primary issue Sanctuary Energy Pty Ltd Billing Credit Customer service Marketing Other Provision Transfer Total Dodo Power & Gas Pty Ltd Billing Credit Customer service Marketing Other Provision Transfer Total Simply Energy Billing Credit Customer Service Provision Transfer Marketing Total Diamond Energy Pty Ltd Billing Customer service Provision Transfer Total Momentum Energy Pty Ltd Billing Provision Credit Total Red Energy Pty Ltd Marketing Total Urth Energy Pty Ltd Customer service Total Locality Planning Energy Pty Ltd Credit Total Grand Total 9,097 9,204 9,598 7,184 5,374 1 TRUenergy was renamed as EnergyAustralia on 1 December From May 2014 Australian Power and Gas customers were migrated to AGL 30 energy+water ombudsman QUEENSLAND

33 Electricity Electricity retailer performance In an effort to benchmark performance we calculated an average complaint-to-customer ratio across all retailers in each tier. Once the benchmark was established deviation from the average was calculated as a percentage. 1 Those retailers with scores above the benchmark line reported a better than average complaint-to-customer ratio. 2 Figure 5: Electricity retailer performance First Tier Second Tier 3 83% 70% 33% 29% 11% -3% -38% -44% -47% -94% Ergon Energy Qld Pty Ltd Origin Energy Electricity Ltd AGL Sales (Queensland Electricity) Pty Ltd Click Energy Pty Ltd Dodo Power & Gas Pty Ltd Energy Australia Pty Ltd Lumo Energy (Qld) Pty Ltd QEnergy Ltd Powerdirect Pty Ltd Sanctuary Energy Pty Ltd First tier benchmark Second tier benchmark 1 Companies who received less than 20 complaints have not been included in the graphs. 2 Customer numbers as at 31 March Second tier retailers are those who entered the market following the introduction of full retail competition. ANNUAL REPORT

34 Electricity Electricity distributors Electricity distributor complaints increased by 7 per cent this year, up from 366 to 391. Most significantly, Supply complaints increased by 55 per cent. Table 10: Closed electricity distributor complaints by primary issue Primary issue Scheme participant Provision ENERGEX Ltd Ergon Energy Corporation Ltd Essential Energy Total Customer service ENERGEX Ltd Ergon Energy Corporation Ltd Essential Energy Total Supply Ergon Energy Corporation Ltd ENERGEX Ltd Essential Energy Total Other ENERGEX Ltd Ergon Energy Corporation Ltd Essential Energy Total Land ENERGEX Ltd Ergon Energy Corporation Ltd Total Billing Ergon Energy Corporation Ltd ENERGEX Ltd Total Grand Total Table 11: Closed electricity complaints by distributor Scheme participant Primary issue ENERGEX Ltd Customer service Supply Provision Other Land Billing Total Ergon Energy Corporation Ltd Supply Provision Customer service Land Other Billing Total Essential Energy Provision Other Supply Customer Service Total Grand Total energy+water ombudsman QUEENSLAND

35 Electricity Contract supplied to customer is the binding contract The customer contacted EWOQ in regards to his retailer not refunding the solar credits that he had accumulated on his account from solar PV generation. The customer had spoken with his retailer about the refund on a number of occasions and was given a week timeframe for the refund to be processed. The next quarterly statement from his retailer showed his solar credits had been deducted from his account but the customer had still not received the money in his bank. The customer was seeking a refund of $2589. Outcome: During the investigation, the retailer advised EWOQ they had denied the refund based on specific terms within a generic contract they provided to EWOQ. The customer however provided EWOQ with a copy of the contract he was provided at the time of opening his account and it was different to the retailer s. EWOQ determined that the contract supplied to the customer at the time of commencing his account was the binding contract and that there were no clauses within that contract that the retailer could rely on to deny the refund. As such, the retailer agreed to pay the customer the $2589 owed to him. The customer and retailer agreed that after this refund the customer would be given a new generic contract, and the customer would be bound by that contract until the termination date of the original contract. Review of business classification results in $46,000 waiver A business owner received a letter in 2013 from their distributor informing them that their business would be reclassified from a small customer to a large customer and subsequently their tariff would increase. The customer contacted their retailer to dispute the change and was advised that the reclassification could be stopped if they installed a solar system. They did not proceed with a solar installation, however three months later received another notification from their retailer advising that the reclassification was no longer going ahead. In October 2014, the customer decided to install a solar system to reduce their electricity costs and following this, experienced delays in receiving their bill for five months. On receiving this first bill, it became apparent that their billing had more than doubled, so the customer contacted the retailer to dispute the charges. The retailer advised that the customer had in fact been reclassified as a large customer back in 2013 and that their bill of $93,700 accurately reflected the charges for the period June 2014 to June Unable to pay the bill, the customer contacted EWOQ for assistance. Outcome: On discussion with EWOQ, the customer agreed to make an immediate payment of $34,000 as a gesture of good faith, leaving a balance of $59,700 in dispute. During EWOQ s investigation, it was established that the customer s electricity consumption prior to the installation of the solar system did in fact place the business into the large customer category and the initial correspondence from the retailer was correct. Following the installation of the solar system, the customer s consumption had reduced and as such the retailer agreed that the business could be reclassified back to the small customer category. The retailer agreed to recalculate the bills under the correct small customer tariff dating back to when the solar system was installed, resulting in a waiver of $46,900 in fees and charges. Further, the retailer applied a $500 goodwill gesture in recognition of the time taken to resolve the matter, reducing the debt to $12,257 and offered a three month payment plan. Disconnected after forgotten bill A customer came home to find her electricity disconnected unexpectedly, so she rang her retailer to investigate. The customer was advised that the outage was due to scheduled maintenance in the area, and that electricity would be restored later that afternoon. When the power did not come back on by that evening, the customer again contacted the retailer and was advised that they had actually been disconnected due to non-payment of their electricity account. Realising the payment had been overlooked due to personal circumstances and wanting the power back on, the customer attempted to make payment immediately over the telephone but was advised that she would need to wait until office hours the following day. When the customer made the payment the next day, she was informed that as it was Friday and the property was rural, the electricity could not be restored until Monday. The customer attempted to explain the exceptional nature of their circumstances to the retailer, however further assistance to have the site reconnected that same day was not forthcoming. The customer then contacted EWOQ for assistance to reconnect the premises. Outcome: As this was a disconnection matter, EWOQ contacted the retailer immediately and discussed the exceptional circumstances that had resulted in the disconnection of the customer s electricity supply. The retailer accepted EWOQ s intervention and the customer s reasons, and agreed to reconnect the property that afternoon. Approximately one hour later, the customer confirmed the premises had been reconnected. ANNUAL REPORT

36 Gas This year we closed 372 gas complaints, a 14 per cent decrease on Billing issues accounted for 55 per cent of all gas complaints, followed by credit with 15 per cent. Table 12: Closed gas complaints by primary issue and case type Primary issue Refer Back Referral to Higher Level Investigation Total Billing Credit Customer Service Provision Transfer Other Land Supply Marketing Total energy+water ombudsman QUEENSLAND

37 Gas 1 marketing 3 land 12 transfer 2 supply 8 other 40 provision 46 customer service 54 credit Billing issues account for more than half (55%) of all gas complaints, and credit issues account for 15% 206 billing A very belated but sincere thanks for your assistance regarding (Retailer). Let us hope they improve after this. [Customer] Number of billing complaints See Table 13 (page 36) for figures. ANNUAL REPORT

38 Gas Gas retailers Overall gas retailer complaints decreased by 14 per cent compared to last year (from 414 to 358). Table 13: Closed gas retailer complaints by primary issue Primary issue Scheme participant Billing AGL Sales (Queensland) Pty Ltd Origin Energy Retail Ltd Maranoa Regional Council Western Downs Regional Council Australian Power and Gas Pty Ltd Total Credit Origin Energy Retail Ltd AGL Sales (Queensland) Pty Ltd Western Downs Regional Council Australian Power and Gas Pty Ltd Total Transfer Origin Energy Retail Ltd AGL Sales (Queensland) Pty Ltd Australian Power and Gas Pty Ltd Total Customer service Origin Energy Retail Ltd AGL Sales (Queensland) Pty Ltd Australian Power and Gas Pty Ltd Total Provision AGL Sales (Queensland) Pty Ltd Origin Energy Retail Ltd Australian Power and Gas Pty Ltd Western Downs Regional Council Total Other Origin Energy Retail Ltd AGL Sales (Queensland) Pty Ltd Australian Power and Gas Pty Ltd Total Marketing AGL Sales (Queensland) Pty Ltd Origin Energy Retail Ltd Australian Power and Gas Pty Ltd Total Grand Total From May 2014 Australian Power and Gas customers were migrated to AGL 36 energy+water ombudsman QUEENSLAND

39 Gas Table 14: Closed gas complaints by retailer Scheme participant Primary issue Origin Energy Retail Ltd Billing Credit Customer service Provision Transfer Other Marketing Total AGL Sales (Queensland) Pty Ltd Billing Provision Credit Customer service Transfer Marketing Other Total Australian Power Customer service and Gas Pty Ltd 1 Marketing Provision Other Credit Billing Transfer Total Maranoa Regional Council Billing Total Western Downs Regional Council Credit Provision Billing Total Grand Total From May 2014 Australian Power and Gas customers were migrated to AGL ANNUAL REPORT

40 Gas Gas distributors Gas distributor complaints continued their downward trend, decreasing 18 per cent this year, down from 17 complaints last year to 14 this year. Table 15: Closed gas distributor complaints by primary issue Primary issue Scheme participant Provision Australian Gas Networks Limited Allgas Energy Pty Ltd Envestra Limited Total Supply Australian Gas Networks Limited Allgas Energy Pty Ltd Envestra Limited Total Customer Service Australian Gas Networks Limited Allgas Energy Pty Ltd Envestra Limited Total Other Western Downs Regional Council Australian Gas Networks Limited Allgas Energy Pty Ltd Envestra Limited Total Land Australian Gas Networks Limited Allgas Energy Pty Ltd Envestra Limited Total Grand Total From October 2014 Envestra Limited became known as Australian Gas Networks Limited Table 16: Closed gas complaints by distributor Scheme participant Primary issue Allgas Energy Pty Ltd Customer Service Provision Billing Supply Other Land Total Envestra Limited 1 Supply Other Land Customer Service Provision Total Western Downs Regional Council Other Total Australian Gas Customer Service Networks Limited 1 Land Supply Provision Other Total Grand Total From October 2014 Envestra Limited became known as Australian Gas Networks Limited 38 energy+water ombudsman QUEENSLAND

41 Gas Adjusted bill received following meter repairs The customer had received and paid their most recent gas bill, but then received another bill for the same period with additional charges. Aware that the second bill had been received after repairs had been made to her meter, the customer contacted her retailer to find out why there were additional charges payable. Told by the retailer that the bill was correct and payable but not provided with any additional information, the customer contacted EWOQ for assistance. Outcome: On investigation, EWOQ found that the initial bill had been estimated and meter repairs by the distributor had allowed for an actual meter reading to be provided to the customer s retailer seven days later. As the estimated bill had already been issued, the retailer issued an adjusted bill for the difference, resulting in additional charges. To assist in resolving the complaint, the gas retailer offered to reduce the additional charges by 50 percent and offered additional time to pay the remaining $140 on the account. Gas leak leads to high bill A customer living in a rental property had a gas stove top and hot water system and usually received a bill each quarter for approximately $100. One quarter, the customer received an account statement for $2400, covering the previous 12 months which had included a gas leak that had previously been identified and fixed. On contacting the retailer they maintained their estimated charges were valid and the bill was payable. Worried about the costs and not happy with the explanation, the customer contacted EWOQ. Outcome: On investigation, it was found there was a noticeable spike in consumption which coincided with the gas leak. The retailer confirmed with the distributor that it was highly likely the leak was responsible for the spike in consumption and as such, the customer was responsible for the costs. The retailer offered to waive $1900 to resolve the complaint and a six month payment plan. The customer agreed to this outcome. Supply address differs from street address The customer was renting a property with natural gas and came home one day to find she had been disconnected. Having only had bottled gas previously, the customer was not aware how natural gas was billed and had not received any accounts or reminder notices. On contacting her retailer, the customer found all correspondence had been issued to the supply address, which differed slightly from the street address. To resolve the issue, the customer arranged for the retailer to send all correspondence via in future. A little over a month later, the customer noticed a service technician driving up the street and was advised they were looking for her supply address to disconnect her again. Frustrated with the issue not being resolved, the customer contacted EWOQ. Outcome: On investigation, the retailer advised that all correspondence had been issued to the address, but it had bounced back. The retailer found that the address had been incorrectly inputted and advised that this had now been corrected. The retailer explained however that the supply address would remain as recorded in the National Database unless the customer provided a rates notice with the correct address on it to change it. The retailer issued a back-bill for the last nine months consumption (the National Energy Retail Rules prevents retailers from issuing back bills for more than nine months where there is an error on their part) and offered a goodwill gesture of $100 in recognition of the customer service issues encountered. ANNUAL REPORT

42 Water There were 405 water complaints this year, up nine per cent on last year (370 complaints). Table 17: Closed water complaints by primary issue and case type Primary issue Refer Back Referral to Higher Level Investigation Total Billing Customer Service Supply Credit Provision Other Land Total Averaged bills issued due to delay in establishing account After moving into their newly constructed townhouse, the customer experienced billing delays and contacted their water distributor-retailer (DR) on a number of occasions to request invoices. When the invoices were eventually received, the consumption charges appeared excessive to the customer and he noted that the invoices did not mention whether the meter readings had been actual or estimated. On contacting the DR again to enquire about the bills, the customer was advised that his meter had not been read since the date it was installed and that the bills had been issued on averaged consumption. Further, he was told that when an actual read was obtained, any overcharging would be rectified. The customer remained unhappy with this arrangement so the retailer made a goodwill offer of financial compensation in recognition of the customer s dissatisfaction, however the customer decided to contact EWOQ to make a complaint. Outcome: On investigation, EWOQ confirmed that there had been a delay by the water DR in establishing the customer s water account, due to the townhouse development not being completed until six months after the customer had moved into his property. According to the DR s records, the customer had received bills for three quarters at one time, all based on average consumption. EWOQ advised the customer that under the South East Queensland Water (Distribution and Retail Restructuring) Act 2009, the DR was able to issue invoices based on averages. To resolve the matter, the DR agreed to accept self-meter readings taken by the customer during the period in dispute and used this information to amend the billing. As a result, the customer s consumption was reduced by 76 kilolitres and a financial adjustment of $244 was applied to the account. The DR offered the customer an interest free payment plan and advised that actual meter reading data would be used from then on as a basis for billing. 40 energy+water ombudsman QUEENSLAND

43 Water 20 other 10 land 23 provision 28 credit 33 supply 49 customer service Billing remains the biggest issue for water customers, accounting for 60% of all water complaints 242 billing Number of billing complaints See Table 18 (page 42) for figures. I am still in shock! I cannot tell you how much I appreciate everything you did. You investigated every possible outcome for this problem, and just when I thought all hope was lost, you achieved this result! This is such a weight off my shoulders, thank you so much. [Customer] ANNUAL REPORT

44 Water Water retailers Table 18: Closed water retailer complaints by primary issue Water retailer complaints increased by 8 per cent on the whole, up from 292 last year to 314 this year. Customer service and credit cases decreased slightly, down 14 per cent and 13 per cent respectively. Primary issue Scheme participant Billing Queensland Urban Utilities Unitywater Gold Coast City Council Logan City Council Redland City Council Allconnex Water* Total Credit Queensland Urban Utilities Unitywater Gold Coast City Council Logan City Council Allconnex Water* Total Customer service Queensland Urban Utilities Unitywater Gold Coast City Council Logan City Council Redland City Council Allconnex Water* Total Other Gold Coast City Council Queensland Urban Utilities Unitywater Allconnex Water* Total Provision Queensland Urban Utilities Unitywater Gold Coast City Council Logan City Council Allconnex Water* Total Grand Total * Allconnex Water was disestablished on 30 June Its water and wastewater services were transferred to Gold Coast, Logan and Redland City Councils. Trickle feed wrongly removed A customer s property utilised water tanks and was serviced by a trickle feed meter, with consumption never being more than 41 kl in a quarter. On receiving a bill which showed consumption as 187 kl, the customer contacted her water distributor-retailer (DR). The customer was advised that there had been a meter change, but two meter tests were undertaken on the new meter and it appeared to be operating correctly. The customer did not think she could have used that much water as there had been no change at the premise and so contacted EWOQ. Outcome: On investigation, EWOQ became aware that at the time the meter was replaced, the trickle feed assembly was removed and not replaced. The DR agreed to install a new trickle feed assembly on the customer s property to replace the assembly removed at no cost to the customer. The DR applied a credit of $547 to cover the cost of high consumption during the period, and once the trickle feed was replaced they also credited the customer s account with the cost of water lost due to the trickle feed assembly being removed. 42 energy+water ombudsman QUEENSLAND

45 Water Table 19: Closed water complaints by retailer Scheme participant Primary issue Unitywater Billing Customer service Credit Provision Other Total Queensland Urban Utilities Billing Credit Customer service Provision Other Total Gold Coast City Council Billing Credit Other Customer service Provision Total Logan City Council Billing Provision Customer service Credit Total Redland City Council Billing Customer Service Total Allconnex Water* Billing Customer service Other Credit Provision Total Grand Total * Allconnex Water was disestablished on 30 June Its water and wastewater services were transferred to Gold Coast, Logan and Redland City Councils. Increase in consumption unknown The customer received a high water bill of over $2300, despite the normal quarterly bills being $300. Having been away from the property for a month and unable to identify any leaks, the customer contacted her water distributor-retailer (DR) to dispute the bill. The DR advised there was nothing they could do regarding the complaint and would not waive the bill. Not satisfied with this response, the customer contacted EWOQ. Outcome: EWOQ s investigation identified that the meter had been inspected by both the DR and the customer and no water was found to be flowing through the meter, indicating there was no leak at the property. The customer advised that Telstra had completed works near the meter and wondered if this could have affected its accuracy. The DR contacted Telstra who advised that the works had been completed after the disputed billing period, and regardless, a subject matter expert had confirmed that any works would have been unlikely to affect the meter, and if they had, the DR would not be liable for the increased consumption. While it was acknowledged there was a significant increase in consumption over the period, neither the DR nor the customer was able to identify what had caused the increased usage. In light of this, the DR offered the customer a once off ex-gratia adjustment of $200 and a flexible interest-free payment plan for the outstanding balance of $2138. ANNUAL REPORT

46 Water Water distributors Table 20: Closed water distributor complaints by primary issue Primary issue Scheme participant Provision Queensland Urban Utilities Unitywater Gold Coast City Council Logan City Council Allconnex Water* Total Supply Queensland Urban Utilities Unitywater Gold Coast City Council Redland City Council Logan City Council Allconnex Water* Total Customer service Queensland Urban Utilities Unitywater Gold Coast City Council Logan City Council Allconnex Water* Total Other Queensland Urban Utilities Gold Coast City Council Unitywater Allconnex Water* Total Land Queensland Urban Utilities Unitywater Gold Coast City Council Redland City Council Logan City Council Allconnex Water* Total Grand Total * Allconnex Water was disestablished on 30 June Its water and wastewater services were transferred to Gold Coast, Logan and Redland City Councils. Concealed leak policy not applicable to irrigation systems On returning home from a holiday, the customer received a letter from their water distributorretailer (DR) notifying them of high consumption at the property. As a result of this letter, the customer organised for a plumber to check the property and a leak was identified in an unused irrigation system and repaired. On receiving a bill for $8000, the customer applied to the DR for a concealed leak remission of $4000. The DR declined the application for a remission. Unhappy with this outcome, the customer contacted EWOQ. Outcome: On investigation, EWOQ confirmed that the DR had acted in accordance with the Water and Sewerage Services Code for Small Customers in South East Queensland in applying their concealed leak policy. Under the DR s concealed leaks policy, assistance for leaks that occur in irrigation systems was specifically excluded and as such the customer was not entitled to a remission. The DR agreed to offer a flexible, interest-free payment plan for $8000 owing. 44 energy+water ombudsman QUEENSLAND

47 Water Table 21: Closed water complaints by distributor Scheme participant Primary issue Queensland Urban Utilities Supply Customer service Provision Other Land Total Unitywater Supply Provision Land Customer service Other Total Logan City Council Land Customer service Supply Provision Total Gold Coast City Council Supply Other Provision Land Customer Service Total Redland City Council Supply Land Total Allconnex Water Customer service Other Land Supply Provision Total Grand Total * Allconnex Water was disestablished on 30 June Its water and wastewater services were transferred to Gold Coast, Logan and Redland City Councils. Compensation sought for damage to vehicle The customer had sustained damage to her car after driving over a water hydrant that was not properly sealed. The customer reported the incident to her water distributor-retailer (DR) and they quickly resealed the hydrant lid so as to not cause further danger to motorists. With significant damage to her car, the customer obtained quotes for repairs totalling $1600 and forwarded all information including photos of the damage to the DR, as well as a request for information regarding any works undertaken in the street that may have caused the hydrant to not be secure. The DR did not provide the customer with any information regarding the requests, only a letter advising denial of the claim. Unhappy with this response, the customer contacted EWOQ. Outcome: On investigation, EWOQ was able to obtain details of the hydrant maintenance but it remained unknown as to what caused the hazard. The DR agreed to cover the customer s $650 insurance excess, which would be paid to the customer on completion of Deed of Release documentation. ANNUAL REPORT

48 Connecting with stakeholders and the community One of the functions of the Ombudsman is to promote the scheme to eligible customers and relevant occupiers of land. In discharging this function, EWOQ maintains a comprehensive communications plan and an active outreach program promoting the scheme to the community. Our priorities this year continue to be older Queenslanders, Aboriginal and Torres Strait Islander customers and customers from non-english speaking backgrounds. We have also continued to build relationships with financial counsellors and community services that assist those in financial hardship. In the media EWOQ recognises that the media plays an important role in promoting our Office by informing the public of our purpose, services, achievements, and activities, and improving their knowledge and understanding of energy and water related issues. EWOQ endeavours to engage with, and be responsive to, the media concerning issues of public interest which fall within EWOQ s responsibilities. During the year: eight proactive media releases were distributed to over 200 Queensland media outlets 11 interviews were held with Queensland s television and radio 49 stories about EWOQ were published/broadcast (88 per cent as a direct result of the distribution of proactive media releases). Community events Over the year, we actively participated in a number of events enabling members of the public to seek advice and assistance concerning their financial affairs. These events included: attending community finance workshops held by The Smith Family and Queensland Council of Social Services presenting to groups including Ozcare, MoneyCare, Financial Counsellors Association of Queensland, Brisbane Migrant Resource Centre, Multilink and the Association of Independent Retirees holding Bring Your Bills sessions in Atherton, Cairns, Aitkenvale and Thuringowa libraries providing a stall at Marlin Coast, Hervey Bay and Toowoomba Seniors Expos, Logan Finance Fair, Yarrabah Community Family Fun Day and Cherbourg Information Day. Stakeholder engagement In , EWOQ continued to engage with our stakeholders through the following activities: regular meetings with our scheme participants to discuss operational issues attending the launch of the Australian Energy Regulator s Energy Made Easy website attending the Department of Energy and Water Supply s Queensland Energy Legislation Review meeting attending a roundtable meeting with the Queensland Productivity Commission participating in the Consumer Industry Reference Group meeting hosted by the Department of Energy and Water Supply meeting with Energy Networks Australia regarding emerging technologies attending the Energy Consumers Australia Forum in Brisbane attending the Australian Energy Regulator, Customer Consultative Group meeting. Covering regional Queensland In we assisted customers from all across Queensland and used a range of community outreach activities and information channels to ensure we were reaching customers and building their awareness of EWOQ s services. The Ombudsman undertook a regional trip in October 2015, meeting with stakeholders in Mackay, Proserpine, Townsville, Innisfail, Gordonvale, Atherton, Mareeba, Mossman and Cairns. Our Regional Managers in North Queensland and Central Queensland also conducted a number of trips to areas including Townsville, Maryborough and Hervey Bay. These trips enabled our office to connect with community leaders and provide information to assist customers in understanding their rights and responsibilities when making an energy or water complaint. 46 energy+water ombudsman QUEENSLAND

49 Connecting with stakeholders and the community Indigenous outreach This year EWOQ continued its relationship with the annual National Aborigines and Islander Day Observance Committee (NAIDOC) week festival held in Cairns, Rockhampton and Brisbane in July. The festival featured information stalls from government bodies, organisations and councils on a range of community issues and services. These events provided a great opportunity to showcase EWOQ to Aboriginal and Torres Strait Islander customers. Our Indigenous Investigation Conciliation and Outreach Officer (IICOO) continues to deliver our outreach program across Queensland, with visits to communities in the South East and North Queensland areas. Our aim is to assist Aboriginal and Torres Strait Islander people to become confident and informed consumers, and ensure they are aware of their right to assistance with issues relating to their energy services, and in South East Queensland their water services. The IICOO attended a number of meetings with, or provided information to, representatives from associations including: Indigenous Wealth Hub Australian Red Cross Breakfast with our Partners Townsville Aboriginal and Torres Strait Islander Corporation for Health Townsville Aboriginal and Torres Strait Islander Women s Legal Service Yarrabah Indigenous Knowledge Centre Wuchopperen Health Service Logan Aboriginal and Torres Strait Islander Community Network Remote Area Aboriginal and Torres Strait Islander Child Care Advisory Association Far North QLD Indigenous Consumer Taskforce Department of Aboriginal and Torres Strait Islander Partnerships Cairns Indigenous Community Volunteers Balkanu Cape York Development Corporation Cape Indigenous Mayors Alliance Aurukun Shire Council Connecting online Following eight years in operation, the EWOQ website was redeveloped in to allow for easier user interaction when lodging disputes and accessing information. This was a large project that involved a review of all content to ensure relevance and accuracy, and a change in the way information was presented to better reflect how customers interact with EWOQ. The new EWOQ website went live in February 2016 and has received positive feedback from the community for its ease of use and availability of detailed information. One of the new features to enhance accessibility was the inclusion of a Google Translate add-in, which enables the site to be viewed in over 100 different languages. We continue to promote the use of online tools such as the Energy and Water Complaints Wizard (a selfassessment tool enabling customers with a dispute to quickly and easily contact the appropriate authority to lodge their complaint) and social media. Our use of social media is to enable interaction between EWOQ and the community by informing Queenslanders of the ways in which EWOQ can assist with their energy and water problems. The EWOQ Twitter profile can be found at www. twitter.com/ewoqld, and the EWOQ Facebook profile at Publications Our EWOQ Update newsletter is issued every quarter specifically for the Queensland community, welfare and health services workers. Published on our website, the EWOQ Update helps us provide frontline workers with tips and information they can draw on to help their clients, as well as keeping them up to date with changes in the energy and water sectors. Once a year, EWOQ conducts an electronic information mail out to all Members of State Parliament (MPs) and a number of social welfare organisations. The mail out provides the opportunity for us to outline the role EWOQ plays and provide direct links to a number of resources on the EWOQ website, including EWOQ brochures and posters. This mail out provides us with an opportunity to ensure staff at the MP offices and welfare groups are aware of our services and can refer customers directly to us when they receive a query or complaint. EWOQ has a range of brochures and posters which provide information on common complaints. Copies of our brochures can be ordered by customers and stakeholders through our website, by phone or . ANZOA and ANZEWON EWOQ maintained its strong links with the Ombudsman community through the Australian and New Zealand Ombudsman Association (ANZOA) and the Australia and New Zealand Energy and Water Ombudsman Network (ANZEWON). In addition to regular informal contact with other Ombudsman offices, the Ombudsman attended ANZEWON meetings in November and February and the ANZOA conference in May. EWOQ staff participated in quarterly meetings with ANZOA interest groups which are centred on issues of common interest such as human resources, communications, policy and strategic development. A number of EWOQ staff also participated in systemic issues meetings with ANZEWON. ANNUAL REPORT

50 Our organisation Charter of Service Our Charter of Service sets out the standard of service that residential and small business energy and water customers, and energy and water entities, can expect if their dispute is referred to us for investigation and resolution. The charter outlines: what customers and scheme participants can expect from EWOQ how EWOQ deals with disputes how we ensure easy access to the scheme how we assist customers from different cultures and backgrounds what we require when acting on behalf of a customer how customers can help us how scheme participants can help us the handling of complaints and feedback relating to EWOQ s services. Organisational structure EWOQ s structure as at 30 June 2016 comprised 41 full time positions. EWOQ has three teams who work under the leadership of the Energy and Water Ombudsman. Operations Led by John Jones, General Manager Operations. Has three regional offices located in Brisbane, Rockhampton and Cairns. Responsible for the day-to-day dispute resolution and investigation of complaints and identification of potential systemic issues. The South Queensland region encompasses the Gold Coast in the South, Gympie to the north, and west to the South Australian border. The Central Queensland region covers the area north of Gympie to Mackay and west to the Northern Territory border. The North Queensland region is north of Mackay (including the Torres Strait islands) and west to the Northern Territory border. Corporate Services Led by Lyn Stevens, Manager Corporate Services. Provides the essential services vital for the day-today running of EWOQ, including finances, records management, information technology, human resource services and administration. Provides training and professional development to staff. Policy and Research Led by Ilona Cenefels, Manager Policy and Research Responsible for leading and coordinating research, analysis and strategic advice and development on complex policies and emerging issues. Manages the development, implementation and analysis of internal and external surveys on behalf of EWOQ. Incorporates marketing and communication. Oversees the quality assurance process for EWOQ and the identification of potential systemic issues. For information on our workforce, see page 52. Advisory Council The Advisory Council to the Energy and Water Ombudsman (Advisory Council) monitors the independence of the EWOQ scheme and provides advice to the Ombudsman on the operation of the Act, see page 8. Council Members are drawn from groups which represent sectoral interests (i.e. industry and consumer), in exercising their Council responsibilities, however, Council Members must act in the best interests of the scheme. The Chairperson may hold office for up to five years, however, there is no restriction on the length of terms of ordinary members. On being appointed to the Advisory Council, members receive an induction to EWOQ to assist in their understanding of the scheme and how the office operates. The EWOQ Advisory Council Handbook provides guidance to Council Members on their roles and responsibilities, while the Advisory Council Code of Conduct aims to assist Council Members to discharge their responsibilities under the Public Sector Ethics Act Both documents are available at It is not a prescriptive Code, but one which contains ethics, principles and values which Council members have agreed to put into practice. Council Members are entitled to meeting fees approved by the Governor-in-Council, and reimbursement for reasonable costs incurred in attending Council meetings, based on the Remuneration procedures for Part-time Chairs and Members of Queensland Government Boards. Details of fees paid to Council Members are available through the Queensland Government s Open Data website visit qld. gov.au/data. Shared service support The Corporate Administration Agency (CAA) provides EWOQ with back office support including financial, human resource and information systems services. CAA is a state government entity established to provide a range of corporate support services to a number of statutory bodies and services in various ways. 48 energy+water ombudsman QUEENSLAND

51 Our organisation Organisational structure Energy and Water Ombudsman Executive Support Officer Team Leader Investigation and Conciliation Investigation and Conciliation Officer Investigation and Conciliation Officer Investigation and Conciliation Officer Regional Manager South Queensland Region Team Leader Investigation and Conciliation Investigation and Conciliation Officer Investigation and Conciliation Officer Investigation and Conciliation Officer General Manager Operations Senior Enquiry and Referral Officer Enquiry and Referral Officer Enquiry and Referral Officer Enquiry and Referral Officer Regional Manager Central Queensland Region Team Leader Investigation and Conciliation Investigation and Conciliation Officer Investigation and Conciliation Officer Investigation and Conciliation Officer Regional Manager North Queensland Region Team Leader Investigation and Conciliation Investigation and Conciliation Officer Investigation and Conciliation Officer Indigenous Investigation Conciliation and Outreach Officer Manager Corporate Services Principal Finance Officer Corporate Support Officer Principal Training and Development Officer Senior Information Technology Officer Senior Systems Analyst Manager Policy and Research Senior Communication and Marketing Officer Research and Systemic Issues Officer Senior Advisor Senior Advisor (based in Rockhampton) Investigation and Conciliation Officer Investigation and Conciliation Officer Investigation and Conciliation Officer Senior Corporate Support Officer The shared services model offers a number of advantages to EWOQ by: removing the need for EWOQ to employ officers to conduct non-core support activities reducing costs through economies of scale by investing in business systems for a number of clients providing EWOQ with access to a pool of experience and expertise. Corporate governance EWOQ s corporate governance framework guides the way we manage our business, minimise our risks and meet our legislative obligations. Our systems are based on strong ethical foundations and our commitment to fairness, accountability and transparency. The framework is available on our website A number of other committees oversee EWOQ s corporate governance including: Executive Management Group The Executive Management Group (EMG) assists the Ombudsman in the stewardship of EWOQ and plays an important role in: setting and monitoring the strategic direction monitoring financial and non-financial performance promoting innovation, research, continuous improvement and quality client service ensuring the optimum use of human, financial and information resources and infrastructure. ANNUAL REPORT

52 Our organisation Its members are: Energy and Water Ombudsman (Chair) Until his resignation in December 2015, Forbes Smith was the Energy and Water Ombudsman for Queensland having been appointed to the position in July John Jones, our General Manager Operations has been Acting Energy and Water Ombudsman since January General Manager Operations John Jones was appointed to the Energy Ombudsman Queensland (EOQ) as General Manager Operations in July John is responsible for leading the complaint investigation and dispute resolution functions of the Office. John also represents EWOQ at forums with state and national jurisdictional regulators, industry and consumer representatives. Prior to joining the Ombudsman scheme John was Manager of the former Energy Consumer Protection Office. John has worked with a number of government agencies during his career mainly in human resource management and industrial relations roles. John holds a Diploma of Business Administration from Central Queensland University, Certificate in Corporate Investigations from the University of Western Sydney and a Mediator Accreditation Certificate from the Queensland Department of Justice. Gary Sacre, our Regional Manager South Queensland has been Acting General Manager Operations since January Manager Corporate Services Lyn Stevens was appointed to the EOQ as Manager Corporate Services in Lyn established and continues to manage the corporate function of EWOQ. She has extensive experience in managing and delivering a broad and comprehensive range of corporate support activities, managing organisational change processes and developing and implementing effective and efficient systems and processes. Lyn s career has seen her work with a number of government departments. Prior to moving to EWOQ she worked with the Department of Mines and Energy as Manager, Strategic Resource Management Branch where she developed and monitored large and complex organisational budgets. Lyn also has broad knowledge of human resource management, corporate governance and information management. Lyn holds an Associate Diploma of Business (Accounting). Manager Policy and Research Ilona Cenefels joined EOQ as the Manager Policy and Research in June Ilona is responsible for leading the advice on complex policies and emerging issues, the marketing and communication functions of the Office and overseeing the quality assurance process for EWOQ and identification of potential systemic issues. She has worked in both the private and public sector, working as a member of the project team for a private utility company in Victoria during the acquisition of a gas distribution network business, before returning to Queensland. Her career in the Queensland Government commenced in Disability Services Queensland and has included working for the Department of Employment Economic Development and Innovation with the Government-owned energy corporations such as ENERGEX and Ergon Energy. Ilona also worked in the Future Technologies area, representing the Queensland Government at National stakeholder meetings to develop the Geothermal Framework for Australia and the tender process for the Queensland Government s Solar mapping project. She holds a Bachelor of Business (Marketing) from Southern Cross University. Audit and Risk Management Committee The role of the Audit and Risk Management Committee is to provide independent assurance and assistance to the Ombudsman concerning EWOQ s risk and compliance frameworks and external legislative requirements. It reports directly to the Energy and Water Ombudsman. The Committee Chair, Mr Trevor Zimmerman, and an independent external member, Mr Phillip Procopis both continue to bring a wealth of experience and expertise to their roles. Ms Ilona Cenefels, EWOQ s Manager Policy and Research, is also a Committee member. Strategic planing A four year Strategic Plan is prepared annually and describes our vision, objectives, strategies and performance indicators. The plan informs the development of our business plan, which details the activities we need to undertake to achieve our strategic objectives. Mandatory online reporting Information on our use of interpreters, consultants engaged by EWOQ and any overseas travel undertaken is published through the Queensland Government s Open Data website visit qld.gov.au/data. Employee Relations EWOQ has worked with the Public Service Commission to contribute to the government s negotiation of the core State Government Departments Certified Agreement (EB) which was certified by the Queensland Industrial Relations Commission on 1 June EWOQ continues to work with the Office of Industrial Relations in relation to the modernisation of the Public Service Officer and Other Employees Award State Workforce diversity EWOQ respects, and is supportive of, diversity and equity in the workplace and the need to reflect the community it serves. EWOQ continued to work with staff to ensure they interact respectfully and competently with people from all cultural backgrounds. EWOQ is an Equal Employment Opportunity (EEO) employer that aims to employ a workforce more representative of the wider community. Code of conduct and ethics EWOQ and its staff are required to make ethical decisions, be accountable for their actions and demonstrate integrity. 50 energy+water ombudsman QUEENSLAND

53 Our organisation EWOQ is also committed to maintaining a positive organisational culture that values and promotes ethical leadership and strong ethical decision making. All employees are required to observe the Queensland Public Service Code of Conduct. The ethics principles and values contained in the Code of Conduct are incorporated into EWOQ policies and procedures as well as each employee s performance plan. All new employees undertake ethics and code of conduct training as part of their mandatory induction. Existing employees are required to undertake annual code of conduct refresher training. EWOQ also offers ethical decision making training to employees. Workplace health and safety The management and staff of EWOQ are committed to providing and maintaining a safe, healthy and supportive work environment at all times. Information about health and wellbeing is regularly communicated to staff members who are required to actively participate in consultation and communication with supervisors and management regarding health, safety and wellbeing issues. This year, EWOQ continued to undertake ergonomic assessments for staff to minimise risk of injury and to enhance productivity. Additionally, we continue to maintain duress alarms in all of our offices to ensure the safety of staff and visitors during meetings at our premises. EWOQ continues to have a low level of workplace accidents with no WorkCover claims being lodged in EWOQ officers work closely with collocated agencies at all our office locations to improve workplace health and safety in shared areas of each building. Risk management Risk Management is an integral part of strategic and business planning, and the everyday activities of EWOQ. EWOQ is committed to the implementation of risk management strategies that ensure efficiency and effectiveness in meeting EWOQ s objectives, while at the same time providing a safe and healthy workplace for staff. EWOQ has statutory responsibility for ensuring appropriate risk management and mitigation processes are in place. Our risk management framework assists in achieving consistent risk management practices across the organisation. In applying risk management principles, it is expected that EWOQ officers at all levels will: minimise the agency s vulnerability to both internal and external threats maximise opportunities to enhance service delivery and create value contribute to effective corporate governance by supporting the flow of timely and effective information to and from key decision makers. Business continuity management EWOQ s external service provider Corporate Administration Agency maintains a Business Continuity Plan which provides for the recovery and/or continuity of our information technology, human resources and finance functions. While we were unable to complete our Business Continuity Plan this year, we did continue to monitor and update our risk register. Business continuity is recognised as a key risk for the organisation and work will continue on this next year, as well as embedding risk management practices in our daily work routine. Information and record keeping This year we have continued to review and update our records management framework, policies, procedures and systems. We continue to review and refine our business classification scheme to ensure ease of identification, storage and retrieval of organisational records and documents. In line with Queensland State Archive requirements, EWOQ has continued to review records and documents to identify records that can be considered for destruction. All new staff are provided with information on our records management framework during their induction. Right to information and the protection of personal information Consistent with the Right to Information Act 2009 and Information Privacy Act 2009, EWOQ provides access to information held by this office unless, on balance, it is contrary to the public interest to provide the information. This approach has resulted in a significant reduction in the number of formal Right to Information (RTI) and Information Privacy (IP) applications received by the Office. To assist staff in understanding and discharging their obligations extensive training is provided in both RTI and IP principles. In , EWOQ participated in the Office of the Information Commissioner Queensland (OIC) selfassessed electronic audit, Privacy Awareness Week, Right to Information Day and contributed to the OIC, RTI and IP Annual Report. EWOQ also publishes a publication scheme and disclosure log on our website. External Dispute Resolution Scheme During , EWOQ was recognised as an external dispute resolution scheme by the Office of the Australian Information Commission (OAIC) under the Privacy Act This enabled EWOQ to investigate complaints regarding privacy breaches by energy companies and credit reporting bodies. EWOQ worked with OAIC to ensure staff were equipped with the relevant knowledge and resources to undertake investigations of these issues. EWOQ is required to provide OAIC with quarterly reports on serious or repeated interference with privacy or systemic privacy issues relating to these bodies. EWOQ is also required to provide an annual report to OAIC containing a range of data relating to complaints investigated under this jurisdiction. During EWOQ participated in the OAIC Privacy Awareness Week. ANNUAL REPORT

54 Our people Workforce planning, attraction and retention At 30 June 2016, 37 officers were employed on a full or part-time basis equating to 35 full-time equivalents (FTE). 70 per cent of the Office s workforce is female and eight per cent are engaged on a part-time basis. Table 22: Staff gender profile as at 30 June 2016 Issue Female Male A03 A A05 A A08 CEO 4 2 Total Whilst EWOQ has been fortunate in having a stable workforce, regular reviews of recruitment strategies and processes ensure new employees are appropriately skilled and able to perform their roles to a high standard. EWOQ maintained a permanent retention rate of 95 per cent in with a corresponding permanent separation rate of five per cent. There were no redundancy, early retirement or retrenchment packages paid to employees in Learning and development EWOQ is committed to developing and maintaining capability for staff to ensure services are delivered efficiently and effectively. This is achieved through in-house and external training sessions and attendance at seminars and conferences. During , staff and managers continued to identify training and development needs to meet performance objectives identified through the Performance Management Framework. The Principal Training and Development Officer also worked with managers to identify any training and development required to meet changes in the energy and water industry. EWOQ continues to invest in its leaders and emerging leaders through training sessions and workshops to further develop leadership, coaching and mentoring skills. All staff are encouraged to learn and develop their skills through on-the-job training and self-directed learning. We have offered technical and compliance training and professional development activities on a range of topics via monthly training sessions, workshops and short courses. Topics covered included: Professional development Time Management; Decision Making; Communication; Workforce Planning; Leadership. Technical skill development Microsoft suite; CISCO telephone system including voice recording; Online training software. Role specific training Energy and Water industry specific training; Changes in jurisdictional responsibilities associated with recognition as an external dispute resolution scheme; Financial management and reporting; Managing in a Public Sector Environment. Compliance training Right to Information; Information Privacy; Procurement; Domestic Violence and the workplace; Cultural Awareness; Ethics; Code of conduct. Performance Management Framework EWOQ s integrated performance management framework includes employee induction, probation, performance planning, and performance management. Managers work with staff to develop employee performance plans that are relevant to their work unit and drive performance. All staff had a performance plan in Performance plans include: specific personal performance outcomes expectations and performance in relation to modelling the values of EWOQ identifying and planning development and training needs career planning and development. 52 energy+water ombudsman QUEENSLAND

55 Our people Work/life balance Flexible working arrangements To help our people balance work, family commitments and outside interests we offer flexible working arrangements such as accrued time, purchased leave, paid maternity leave, and part-time work arrangements. Employee assistance program Our people continued to have free access to the Employee Assistance Program, a confidential counselling service for them and their families. This service is provided by qualified, experienced professionals through Davidson Trehaire Corpsych. Communicating with staff To keep staff informed, team meetings and whole office meetings are held on a regular basis, allowing for discussions around current issues as well as question and answer sessions. In addition, all-staff s are sent from the Executive Management Group (EMG) when necessary, and news and alerts are published on the EWOQ intranet The Grid. EWOQ also produces a quarterly newsletter Inside Story, which provides a mix of work and non-work related news and updates. EWOQ staff survey This year saw the third staff survey since EWOQ s establishment. Conducted in July 2015, the survey provides a structured way of giving staff an opportunity to express views and opinions about a range of issues within EWOQ. The survey measures two key components of the work environment: workplace morale and organisational stress. Similar to previous surveys, staff feedback on organisational change, training and development, and policies, business rules and procedures was sought in the 2015 survey. The quantitative results for workplace morale showed most measures were neutral or better, with job satisfaction scoring most highly. All measures of organisational stress were neutral or better, with individual stress, thinking of leaving and taking action to leave scoring positively over consecutive survey periods. In terms of qualitative measures, the following were the strongest whole-of-agency themes: a strong team spirit staff value the camaraderie and efforts of colleagues appreciation for the support of supervisors and managers a strong desire for enhanced learning and development, including access to relieving opportunities a view that communication between programs and within work units is ineffective and open to interpretation a perception that silos exist across the organisation (hierarchical, geographical and between programs). Following the results of the staff survey, a series of group discussions were conducted with an external consultant and staff to validate and reality test the results. A range of graphic facilitation tools and techniques were used to provide a transparent, supportive and encouraging environment where staff felt safe and comfortable to express their views and contribute effectively. The sessions enabled staff to discuss in depth the underlying issues that needed to be addressed, what was currently working at EWOQ and what needed to be done differently. Staff were able to contribute towards suggested strategies for improvement that were then passed on to EMG for consideration. EMG have conducted a number of workshops to discuss the practicalities of implementing the suggested strategies, which will be rolled out during the year. EWOQ staff participated for the first time in the annual whole of public sector Working for Queensland (WfQ survey) survey conducted during May The WfQ survey is an annual survey which measures Queensland public service employee perceptions of their work, manager, team and organisation. EWOQ received results from this survey on 27 June 2016 and have begun analysing these results. EWOQ will continue to participate in the annual WfQ survey and it is anticipated that this survey will replace our internal staff survey. Community involvement Our staff are dedicated to helping the community both personally and professionally. In we supported: Australia s Biggest Morning Tea for Cancer Council Red Cross Jeans for Genes RSPCA Smith Family Christmas toy appeal. ANNUAL REPORT

56 Financial Summary The financial records of the have been properly maintained throughout the year ending 30 June 2016 in compliance with prescribed requirements. The risk management and control systems relating to financial management have been operating efficiently, effectively and economically throughout the financial year. Funding of the Energy and Water Ombudsman Scheme Although the was established by Queensland legislation as a public service office, it is not funded from consolidated revenue. Rather, it is funded by participation fees and user pays fees levied on energy and water retailers and distributors who participate in the Ombudsman scheme. The majority of energy and water Ombudsman offices in Australia are similarly funded. EWOQ s user pays model reflects the level of time and resources needed to resolve individual disputes. In addition, scheme participants are liable to increased fees should they fail to adequately respond to our investigations or do so in a timely way. This process is designed to encourage the early closure of complaint investigations. Under s. 65(1) of the Energy and Water Ombudsman Act 2006 an annual participation fee is also imposed on each scheme participant. The annual participant fees for were: Entity type Energy entity is the holder of a distribution authority under one energy Act. Energy entity is the holder of a distribution authority under two energy Acts. Energy entity is a holder of a retail authority under only one energy Act. Energy entity is a holder of a retail authority under two energy Acts. Energy entity is the holder of a special approval and provides customer connection services Energy entity is an exempt seller Annual fee $5,000 $10,000 $5,000 $10,000 $5,000 Amount prescribed under regulation All water entities $10,000 * Under s. 4 of the Energy and Water Ombudsman Regulation 2007, Western Downs Regional Council and Maranoa Regional Council receive a variation to their scheme participant fees. User pays fees are invoiced prior to the commencement of each quarter (advance user pays fees) and are then reconciled after the end of December and the end of June (actual user pays fees). The advance user pays fees are based on each scheme participant s previous usage of the scheme in relation to case types of refer back to supplier, referral to higher level, investigations level 1 and investigations level 2. Actual user pays fees are calculated using actual expenditure and actual usage of the scheme by each participant. Investigations level 3 and final orders are not included in the advance user pays fees and are captured in the calculation of actual user pays fees. Under legislation, scheme participants have 14 days to pay invoices relating to EWOQ fees. EWOQ maintains a case management system, Resolve, to register each case and to record all details, activities and documents relating to each case. Each case is uniquely identified within Resolve and EWOQ staff record the amount of time (in minutes) they spend on dealing with each case. Both the advance user pays fees and the actual user pays fees for each case type are calculated using number of cases closed and average time (in minutes) taken to close cases. EWOQ uses a single fee per case for refer back to supplier, referral to higher level, investigation level 1 and investigation level 2 cases. Investigation level 3 cases are charged at the cost of an investigation level 2 plus a cost per minute for actual minutes at investigation level 3. Final orders are charged at the investigation level of the case when the investigation ceased, plus a fixed fee of $4,000 per final order. Should EWOQ find that the approved budget is insufficient to meet its operating costs, supplementary funding may be required from scheme participants. This has occurred once in the history of EWOQ, when in EWOQ had approval for and invoiced the scheme participants for supplementary funding of $600,000 this related to a significant increase in complaint numbers that resulted in lengthy delays in resolving complaints (workload higher than staff capacity). Conversely, at the end of the financial year any surplus funds will be returned to scheme participants. The reconciliations at end of December and end of June each year ensure we meet our legislative requirement that scheme participants are only charged the actual costs required to operate the scheme for that period. 54 energy+water ombudsman QUEENSLAND

57 Financial Summary Level 3 Investigation (10.3%) Level 2 Investigation (20.1%) Refer back (20.2%) Plant and Equipment (0.2%) Prepayments (1.8%) Receivables (8.5%) Accrued employee entitlements (18.8%) Unearned revenue (37.9%) Referral to higher level (22.2%) Level 1 Investigation (27.2%) Cash and cash equivalents (89.5%) Payables (43.4%) Figure 6: User pays fee breakdown See page 67 for figures. Figure 7: Assets as at 30 June 2016 See page 60 for figures. Figure 8: Liabilities as at 30 June 2016 See page 60 for figures. Our financial performance EWOQ s budget for was again developed from a zero base that is without any surplus funds from the previous financial year taking into account all known changes in expenditure from the previous year and likely future expenses. During the year EWOQ has seen a fall in complaint activity of 18 per cent. Management introduced resourcing strategies to reflect the reduced case load creating savings and decreasing the general operating costs. EWOQ was then able to fund projects that had been deferred from As shown in our Statement of Comprehensive Income on page 59, the Office s operating result (expenses minus income) for was $5000. This income relates primarily to interest charged to scheme participants under the Act for late payment of scheme fees. Our Income Income for was $6.082 million, up from $6.041 million in The income consisted of participation fees of $172,011; user pays fees of $5.853 million, and other revenue of $57,630. Figure 6 shows the split of user pays fees by case types. Our Expenditure Expenses for the year amounted to $6.077 million, up from $6.033 million in Employee expenses accounted for $4.214 million or 69.3 per cent, with supplies and services accounting for a further 29.9 per cent or $1.822 million. Depreciation, audit fees, and costs associated with our Advisory Council made up the balance of our total expenditure. Our financial position As shown in the Statement of Financial Position, the Office ended the year with total equity of $258,000. Assets EWOQ s assets amounted to $2.267 million and primarily related to cash and cash equivalents $2.029 million and receivables of $192,000. Refer to Figure 7. Liabilities EWOQ s liabilities amounted to $2.009 million primarily related to payables of $871,000, unearned revenue of $761,000, and employee benefits (annual leave) of $377,000. Unearned revenue relates to user pays fees received from scheme participants for quarter one advances. Refer to Figure 8. ANNUAL REPORT

58 56 energy+water ombudsman QUEENSLAND

59 Office of the Energy and Water Ombudsman (trading as Energy and Water Ombudsman Queensland) Financial Statements for the financial year ended 30 June 2016 Contents Page Statement of Comprehensive Income Statement of Financial Position Statement of Changes in Equity Statement of Cash Flows Notes to and forming part of the Financial Statements Management Certificate Independent Audit Report ANNUAL REPORT

60 Financial Statements General Information These financial statements cover the Office of the Energy and Water Ombudsman trading as Energy and Water Ombudsman Queensland (EWOQ). It has no controlled entities. EWOQ is a free and independent dispute resolution service for Queensland s energy consumers and water customers in South East Queensland. The Office of the Energy and Water Ombudsman was established under the Energy and Water Ombudsman Act The is controlled by the State of Queensland which is the ultimate parent. The head office and principal place of business of the Office is: Level 16, 53 Albert Street, Brisbane. A description of the nature of Energy and Water Ombudsman Queensland s operations and its principal activities is included in the notes to the financial statements. For information in relation to the Office of the Energy and Water Ombudsman financial statements please call , info@ewoq.com.au or visit Energy and Water Ombudsman Queensland s internet site at 58 energy+water ombudsman QUEENSLAND

61 Financial Statements Statement of Comprehensive Income STATEMENT OF COMPREHENSIVE INCOME for the year ended June June Notes $'000 $'000 Income from Continuing Operations Revenue User charges and fees 3. 6,022 5,984 Other revenue Total Income from Continuing Operations 6,082 6,042 Expenses from Continuing Operations Employee expenses 5. 4,214 4,431 Supplies and services 6. 1,822 1,561 Depreciation Other expenses Total Expenses from Continuing Operations 6,077 6,034 Operating Result from Continuing Operations 5 8 Total Comprehensive Income 5 8 The accompanying notes form part of these statements. ANNUAL REPORT

62 Financial Statements Statement of Financial Position STATEMENT OF FINANCIAL POSITION as at 30 June Notes $'000 $'000 Current Assets Cash and cash equivalents 8. 2,029 1,761 Receivables Prepayments Total Current Assets 2,262 2,247 Non Current Assets Plant and equipment Total Non Current Assets 5 16 Total Assets 2,267 2,263 Current Liabilities Payables ,051 Accrued employee benefits Unearned Revenue Total Current Liabilities 2,009 2,010 Total Liabilities 2,009 2,010 Net Assets Equity Accumulated surplus Contributed equity Total Equity The accompanying notes form part of these statements. 60 energy+water ombudsman QUEENSLAND

63 Financial Statements Statement of Changes in Equity STATEMENT OF CHANGES IN EQUITY for the year ended 30 June 2016 for the year ended 30 June 2016 Accumulated Contributed Surplus Equity TOTAL $'000 $'000 $'000 Balance as at 1 July Operating Result from Continuing Operations 8-8 Balance as at 30 June Balance as at 1 July Operating Result from Continuing Operations 5-5 Balance as at 30 June The accompanying notes form part of these statements. ANNUAL REPORT

64 Financial Statements Statement of Cash Flows STATEMENT OF CASH FLOWS for the year ended 30 June 2016 for the year ended 30 June Notes $'000 $'000 Cash flows from operating activities Inflows: User charges and fees 6,464 5,509 Interest receipts GST input tax credits from ATO GST collected from members/customers 5 2 Other - 2 Outflows: Employee expenses (4,223) (4,392) Supplies and services (1,999) (1,429) GST remitted to ATO (5) (2) GST paid to suppliers (191) (167) Other (24) (24) Net cash provided by (used in) operating activities CF (270) Cash flows from investing activities Outflows: Payments for property plant and equipment (6) - Net cash provided by (used in) investing activities (6) - Net increase (decrease) in cash and cash equivalents 268 (270) Cash and cash equivalents at beginning of financial year 1,761 2,031 Cash and cash equivalents at end of financial year 8. 2,029 1,761 The accompanying notes form part of these statements. 62 energy+water ombudsman QUEENSLAND

65 Financial Statements Statement of Cash Flows STATEMENT OF CASH FLOWS for the year ended 30 June 2016 for the year ended 30 June 2016 NOTES TO THE STATEMENT OF CASH FLOW CF-1. Reconciliation of Operating Result to Net Cash provided by Operating Activities $'000 $'000 Operating surplus 5 8 Non-cash items included in operating profit Depreciation expense Changes in assets and liabilities: (Increase)/decrease in receivables (Increase)/decrease in prepayments 3 (17) Increase/(decrease) in accounts payable (179) 149 Increase/(decrease) in accrued employee benefits (13) 34 Increase/(decrease) in unearned revenue 192 (634) Net cash provided by (used in) operating activities 274 (270) ANNUAL REPORT

66 Financial Statements Notes to and forming part of the Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Section 1: About EWOQ and this Financial Report Note 1: Basis of Financial Statement Preparation Note 2: Objectives and Principal Activities of the Energy and Water Ombudsman Queensland Section 2: Notes about our Financial Performance Note 3: User Charges and Fees Note 4: Other Revenues Note 5: Employee Expenses Note 6: Supplies and Services Note 7: Other Expenses Section 3: Notes about our Financial Position Note 8: Cash and Cash Equivalents Note 9: Receivables Note 10: Property, Plant and Equipment Note 11: Payables Note 12: Accrued Employee Benefits Section 4: Notes about Risks and Other Accounting Uncertainties Note 13: Commitments for Expenditure Note 14: Contingencies Note 15: Financial Risk Disclosures Note 16: Events Occurring After Balance Date Note 17: Future Impact of Accounting Standards Not Yet Effective Section 5: Other Information Note 18: Key Management Personnel Disclosures Note 19: First year Application of New Accounting Standards or Change in Policy Note 20: Taxation Note 21: Going Concern 64 energy+water ombudsman QUEENSLAND

67 Financial Statements Notes to and forming part of the Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Basis of Financial Statement Preparation General Information These financial statements cover the trading as Energy and Water Ombudsman Queensland (EWOQ). It has no controlled entities. EWOQ is a free and independent dispute resolution service for Queensland's energy consumers and water customers in South East Queensland. The was established under the Energy and Water Ombudsman Act The is controlled by the State of Queensland which is the ultimate parent. The head office and principal place of business of the Office is: Level 16, 53 Albert Street, Brisbane A description of the nature of Energy and Water Ombudsman Queensland's operations and its principal activities is included in the notes to the financial statements. For information in relation to the financial statements please call , info@ewoq.com.au or visit Energy and Water Ombudsman Queensland's internet site at Compliance with Prescribed Requirements EWOQ has prepared these financial statements in compliance with section 43 of the Financial and Performance Management Standard These financial statements are general purpose financial statements, and have been prepared on an accrual basis in accordance with Australian Accounting Standards and Interpretations. In addition, the financial statements comply with Queensland Treasury's Financial Reporting Requirements for the year ending 30 June 2016, and other authoritative pronouncements. With respect to compliance with Australian Accounting Standards and Interpretations, EWOQ has applied those requirements applicable to not-for-profit entities, as EWOQ is a not-for-profit entity. New accounting standards early adopted or applied for the first time in these financial statements are outlined in Note 19. Presentation Currency and Rounding Amounts included in the financial statements are in Australian dollars and rounded to the nearest $1,000 or, where that amount is $500 or less, to zero, unless disclosure of the full amount is specifically required. Comparatives Comparative information reflects the audited financial statements unless restated where necessary to be consistent with disclosures in the current reporting period. ANNUAL REPORT

68 Financial Statements Notes to and forming part of the Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Basis of Financial Statement Preparation (cont) Presentation (cont) Current / Non-Current Classification Assets and liabilities are classified as either 'current' or 'non-current' in the Statement of Financial Position and associated notes. Assets are classified as 'current' where their carrying amount is expected to be realised within 12 months after the reporting date. Liabilities are classified as 'current' when they are due to be settled within 12 months after the reporting date, or EWOQ does not have an unconditional right to defer settlement to beyond 12 months after the reporting date. All other assets and liabilities are classified as non-current. Authorisation of Financial Statements for Issue The financial statements are authorised for issue by the Energy and Water Ombudsman and the Manager, Corporate Services of the at the date of signing the Management Certificate. Basis of Measurement The historical cost convention is used unless otherwise stated. The Reporting Entity The financial statements include the value of all income, expenses, assets, liabilities and equity of EWOQ. EWOQ does not have any controlled entities. 2. Objectives and Principal Activities of the Energy and Water Ombudsman Queensland The Energy and Water Ombudsman Act 2006 provides the legislative basis and framework for the delivery of services by the (trading as EWOQ). EWOQ provides an independent dispute resolution service to meet the diverse needs of relevant small electricity, reticulated gas and water customers and their relevant energy and water retailers and distributors in Queensland. EWOQ aims to: Contribute to improved service delivery in the energy and water sector Foster a culture of excellence Adhere to the principles of independence and accountability in all we do Provide all Queenslanders with equal access to our service These financial statements have been prepared on the basis and assumption that there will be no significant jurisdictional or legislative changes adversely effecting the financial operations of EWOQ. 66 energy+water ombudsman QUEENSLAND

69 Financial Statements Notes to and forming part of the Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS $'000 $' User Charges and Fees User-pays fees 5,850 5,818 Membership fees Total 6,022 5,984 Accounting Policy - User Charges and Fees EWOQ is fully funded through legislated fees and charges to industry scheme participants through a combination of annual participation and quarterly user pays fees. EWOQ invoices in advance for annual participation fees. In relation to quarterly user pays fees, EWOQ invoices in advance based on estimated usage and then reconciles back to actuals twice a year. Participation and user pays fees are controlled by EWOQ where they can be deployed for the achievement of EWOQ's objectives. User pays fee invoices are raised against unearned revenue. All fees are recognised as user charges revenue when the operating costs are incurred. 4. Other Revenues Interest Other revenue - 2 Total Accounting Policy - Grants and Contributions Grants, contributions, donations and gifts that are non-reciprocal in nature are recognised as revenue in the year in which EWOQ obtains control over them. Where grants are received that are reciprocal in nature, revenue is progressively recognised as it is earned, according to the terms of the funding agreements. Contributed assets are recognised at their fair value. Contributions of services are recognised only when a fair value can be determined reliably and the services would have been purchased if they had not been donated. ` ANNUAL REPORT

70 Financial Statements Notes to and forming part of the Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Employee Expenses Employee Benefits Wages and salaries 3,157 3,296 Employer superannuation contributions Long service leave levy Annual leave expenses Employee Related Expenses Payroll tax Workers' compensation premium Other employee expenses Total 4,214 4,431 The number of employees as at 30 June, including both full-time employees and parttime employees, measured on a full-time equivalent basis is: Number of employees: Accounting Policies - Employee Benefits Employee Benefits Employer superannuation contributions and long service leave levies are regarded as employee benefits. Payroll tax and workers' compensation insurance are a consequence of employing employees, but are not counted in an employee's total remuneration package. They are not employee benefits and are recognised separately as employee related expenses. Wages, Salaries, Annual Leave and Sick Leave Wages, salaries and annual leave due but unpaid at reporting date are recognised in the Statement of Financial Position at current salary rates. For unpaid entitlements expected to be paid within 12 months, the liabilities are recognised at their undiscounted values. Entitlements not expected to be paid within 12 months are recognised at their present value, calculated using yields on Fixed rate Commonwealth Government bonds of similar maturity, after projecting the remuneration rates expected to apply at the time of likely settlement. Prior history indicates that on average, sick leave taken each reporting period is less than the entitlement accrued. This is expected to continue in future periods. Accordingly, it is unlikely that existing accumulated entitlements will be used by employees and no liability for unused sick leave entitlements is recognised. As sick leave is non-vesting, an expense is recognised for this leave as it is taken. 68 energy+water ombudsman QUEENSLAND

71 Financial Statements Notes to and forming part of the Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Employee Expenses (cont) Long Service Leave Under the Queensland Government's Long Service Leave Scheme, a levy is made on EWOQ to cover the cost of employees' long service leave. The levies are expensed in the period in which they are payable. Amounts paid to employees for long service leave are claimed from the scheme quarterly in arrears. No provision for long service leave is recognised in EWOQ's financial statements, the liability being held on a whole-of-government basis and reported in those financial statements pursuant to AASB 1049 Whole of Government and General Government Sector Financial Reporting. Superannuation Employer superannuation contributions are paid to QSuper, the superannuation scheme for Queensland Government employees, at rates determined by the Treasurer on the advice of the State Actuary. Contributions are expensed in the period in which they are paid or payable. EWOQ's obligation is limited to its contribution to QSuper. The QSuper scheme has defined benefit and defined contribution categories. The liability for defined benefits is held on a whole-of-government basis and reported in those financial statements pursuant to AASB 1049 Whole of Government and General Government Sector Financial Reporting. Workers' Compensation Premiums EWOQ pays premiums to WorkCover Queensland in respect of its obligations for employee compensation. Workers' compensation insurance is a consequence of employing employees, but is not counted in an employee's total remuneration package. It is not employee benefits and is recognised separately as employee related expenses. Key Executive Management Personnel and Remuneration Key management personnel and remuneration disclosures are detailed in Note 18. ANNUAL REPORT

72 Financial Statements Notes to and forming part of the Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS $'000 $' Supplies and Services Consultants and contractors Travel Property lease and rental Promotion and entertainment Printing, stationery and office supplies Information technology Communications Corporate service charges Sundries supplies and services Total 1,822 1, Other Expenses Advisory Council fees 4 5 External audit fees * Other 2 2 Total * Total audit fees paid to the Queensland Audit Office relating to the financial statements are estimated to be $18,500 (2015: $16,800). There are no non-audit services included in this amount. Accounting Policies - Special Payments Special Payments include ex gratia expenditure and other expenditure that EWOQ is not contractually or legally obligated to make to other parties. In compliance with the Financial and Performance Management Standard 2009, EWOQ maintains a register setting out details of all special payments greater than $5,000. Descriptions of the nature of special payments are only provided for special payments greater than $5, energy+water ombudsman QUEENSLAND

73 Financial Statements Notes to and forming part of the Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS $'000 $' Cash and Cash Equivalents Cash at bank 2,029 1,761 Total 2,029 1,761 Accounting Policy - Cash and Cash Equivalents For the purposes of the Statement of Financial Position and the Statement of Cash Flows, cash assets include all cash and cheques receipted but not banked at 30 June as well as deposits at call with financial institutions. Interest earned on cash held with the Commonwealth Bank earned 2.57% in 2016 (2.78% in 2015). 9. Receivables Trade debtors GST receivable Long service leave reimbursements 8 12 Interest receivable 3 3 Total Accounting Policy - Receivables Trade debtors are recognised at the amounts due at the time of sale or service delivery i.e. the agreed purchase/contract price. Settlement of these amounts is required within 14 days from date invoice received. The collectability of receivables is assessed periodically with provision being made for impairment. ANNUAL REPORT

74 Financial Statements Notes to and forming part of the Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Property, Plant and Equipment Closing Balances and Reconciliation of Carrying Amount Plant and equipment Total $'000 $'000 $'000 $'000 Gross At cost plant and equipment Less: Accumulated depreciation plant and equipment (45) (44) (45) (44) Less: Accumulated impairment losses - - Carrying amount as at 30 June Represented by movements in carrying amount: Carrying amount at 1 July Acquisitions Depreciation - Plant & Equipment (17) (18) (17) (18) Carrying amount as at 30 June Recognition and Acquisition Accounting Policy - Recognition Threshold Expenditure on plant and equipment is capitalised to the extent that future economic benefits will flow to the entity and the asset can be reliably separated and measured. In addition, expenditure is only capitalised if it increases the service potential or useful life of the existing asset. Maintenance expenditure that merely restores original service potential (arising from ordinary wear and tear etc.) is expensed. Items with a total value of less than $5,000 are treated as an expense in the year of acquisition. 72 energy+water ombudsman QUEENSLAND

75 Financial Statements Notes to and forming part of the Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Property, Plant and Equipment (cont) Recognition and Acquisition (cont) Accounting Policy - Cost of Acquisition Historical cost is used for the initial recording of all property, plant and equipment acquisitions. Historical cost is determined as the value given as consideration plus costs incidental to the acquisition, including all other costs incurred in getting the assets ready for use, including architects' fees and engineering design fees. Where assets are received free of charge from another Queensland Government agency (whether as a result of a machinery-of-government change or other involuntary transfer), the acquisition cost is recognised as the carrying amount in the books of the other agency immediately prior to the transfer. Assets acquired at no cost or for nominal consideration, other than from another Queensland Government entity, are recognised at their fair value at date of acquisition. Measurement using Historical Cost Accounting Policy - Historical Cost Plant and equipment is measured at historical cost in accordance with the Non-Current Asset Policies. The carrying amounts for such plant and equipment is not materially different from their fair value. Separately identified components of assets as measured on the same basis as the assets to which they relate. ANNUAL REPORT

76 Financial Statements Notes to and forming part of the Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Property, Plant and Equipment (cont) Depreciation Expense Accounting Policy - Depreciation Depreciation on property, plant and equipment is calculated on a straight-line basis so as to allocate the net cost of each depreciable asset progressively over it's estimated useful life to EWOQ. Key Judgement: Straight line depreciation is used reflecting the progressive, and even, consumption of future economic benefits of assets over their useful life to EWOQ. Any expenditure that increases the originally assessed capacity or service potential of an asset is capitalised and the new depreciable amount is depreciated over the remaining useful life of the asset to EWOQ. For each class of depreciable asset the following depreciation rates were used: Class Rate % Plant and equipment: Impairment Accounting Policy - Impairment All non-current physical assets are assessed for indicators of impairment on an annual basis. If an indicator of possible impairment exists, EWOQ determines the asset's recoverable amount. Any amount by which the asset's carrying amount exceeds the recoverable amount is recorded as an impairment loss. The asset's recoverable amount is determined as the higher of the asset's fair value less costs to sell and depreciated replacement cost. Insurance EWOQ's non-current physical assets and other risks are insured through the Queensland Government Insurance Fund, premiums being paid on a risk assessment basis. 74 energy+water ombudsman QUEENSLAND

77 Financial Statements Notes to and forming part of the Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS $'000 $' Payables Trade creditors Accrued expenses Total 871 1,051 Accounting Policy - Payables Trade creditors are recognised upon receipt of the goods or services ordered and are measured at the agreed purchase/contract price, gross of applicable trade and other discounts. Amounts owing are unsecured and are generally settled on 30 day terms. 12. Accrued Employee Benefits Current Wages Payable Annual Leave Long service leave levy payable Total Commitments for Expenditure Non-Cancellable Operating Lease Commitments under operating leases at reporting date are inclusive of anticipated GST and are payable as follows: Not later than one year Later than one year and not later than five years Total 851 1,180 Accounting Policy - Operating Leases Operating lease payments are representative of the pattern of benefits derived from the leased assets and are expensed in the periods in which they are incurred. Operating leases are entered into as a means of acquiring access to office accommodation. Lease payments are generally fixed, but with inflation escalation clauses on which contingent rentals are determined. ANNUAL REPORT

78 Financial Statements Notes to and forming part of the Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Contingencies There were no other known contingent assets or liabilities at 30 June Financial Risk Disclosures Financial Instrument Categories EWOQ has the following categories of financial assets and financial liabilities: Category Note $'000 $'000 Financial Assets Cash and cash equivalents 8. 2,029 1,761 Receivables Total 2,221 2,203 Financial Liabilities Financial liabilities measured at amortised costs: Payables ,051 Total 871 1,051 No financial assets and financial liabilities have been offset and presented net in the Statement of Financial Position. The allowance for impairment reflects the occurrence of loss events. The most readily identifiable loss event is where a debtor is overdue in paying a debt to EWOQ, according to the due date (normally terms of 14 days). Economic changes impacting EWOQ's debtors and relevant industry data, also form part of EWOQ's documented risk analysis. No financial assets have had their terms renegotiated so as to prevent them from being past due or impaired, and are stated at the carrying amounts as indicated. Financial Risk Management Risk Exposure EWOQ's activities expose it to a variety of financial risks - interest rate risk, credit risk, liquidity risk and market risk. Financial risk management is implemented pursuant to Government and EWOQ policy. These policies focus on the unpredictability of financial markets and seek to minimise potential adverse effects on the financial performance of EWOQ. All financial risk is managed by Executive Management under policies approved by EWOQ. EWOQ provides written principles for overall risk management, as well as policies covering specific areas. 76 energy+water ombudsman QUEENSLAND

79 Financial Statements Notes to and forming part of the Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Financial Risk Disclosures (cont) Financial Risk Management (cont) EWOQ measures risk exposure using a variety of methods as follows: Risk Exposure Credit Risk Definition Exposure Credit risk exposure refers to the situation where The maximum exposure to EWOQ may incur financial loss as a result of another credit risk at balance date in party to a financial instrument failing to discharge their relation to each class of obligation. recognised financial assets is the gross carrying amount of those assets inclusive of any provisions for impairment. EWOQ's maximum exposure to credit risk is the carrying amount of its Financial Assets as set out later in this note. Liquidity Risk Market Risk Liquidity risk refers to the situation where EWOQ may EWOQ is exposed to liquidity encounter difficulty in meeting obligations associated risk in respect of its payables. with financial liabilities that are settled by delivering All of EWOQ's financial cash or another financial asset. liabilities are due for payment within 1 year. The risk that the fair value or future cash flows of a EWOQ does not trade in financial instrument will fluctuate because of changes foreign currency and is not in market prices. Market risk comprises three types of materially exposed to risks: currency risk, interest risk and other price risk. commodity price changes. Interest rate risk is the risk that the fair value or future EWOQ is exposed to interest cash flows of a financial instrument will fluctuate rate risk through its cash because of changes in market interest rates. deposited in interest bearing accounts. ANNUAL REPORT

80 Financial Statements Notes to and forming part of the Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Financial Risk Disclosures (cont) Risk Measurement and Management Strategies EWOQ measures risk exposure using a variety of methods as follows: Risk Exposure Credit Risk Liquidity Risk Measurement Method Ageing analysis, earnings at risk Sensitivity analysis Risk Management Strategies No collateral is held as security and no credit enhancements relate to financial assets held by EWOQ. EWOQ manages credit risk through the use of management reports. This strategy aims to reduce the exposure to credit default by ensuring that EWOQ invests in secure assets and monitors all funds owed on a timely basis. Exposure to credit risk is monitored on an ongoing basis. EWOQ manages liquidity risk through the use of management reports. This strategy aims to reduce the exposure to liquidity risk by ensuring EWOQ has sufficient funds available to meet employee and supplier obligations as they fall due. This is achieved by ensuring that minimum levels of cash are held within the various bank accounts so as to match the expected duration of the various employee and supplier liabilities. Market Risk Credit Risk Exposure Interest rate sensitivity analysis EWOQ does not undertake any hedging in relation to interest risk and manages its risk as per the liquidity risk management strategy. Ageing of past due but not impaired financial assets are disclosed in the following tables: 2016 Financial Assets Past Due But Not Impaired Note Days Days Days Days Total $'000 $'000 $'000 $'000 $'000 Receivables Total Financial Assets Past Due But Not Impaired Note Less than 30 Less than Overdue Overdue More than 90 More than 90 Days Days Days Days Total $'000 $'000 $'000 $'000 $'000 Receivables Total energy+water ombudsman QUEENSLAND Page 22

81 Financial Statements Notes to and forming part of the Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Financial Risk Disclosures (cont) Interest Rate Sensitivity Analysis No sensitivity analysis has been conducted on the basis that the only Financial Instrument held by EWOQ that would be impacted by a change in interest rates is cash, and a +/-1% change would result in an immaterial impact on profit for the year. Fair Value The fair value of trade receivables and payables is assumed to approximate the value of the original transaction, less any allowance for impairment. Recognition Financial assets and financial liabilities are recognised in the Statement of Financial Position when EWOQ becomes party to the contractual provisions of the financial instrument. Classification Financial instruments are classified and measured as follows: Receivables - held at amortised cost Payables - held at amortised cost EWOQ does not enter into, or trade with, such instruments for speculative purposes, nor for hedging. EWOQ holds no financial assets classified at fair value through profit and loss. 16. Events Occurring After Balance Date No event has occurred after balance date that has a material effect on these financial statements. ANNUAL REPORT

82 Financial Statements Notes to and forming part of the Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Future Impact of Accounting Standards Not Yet Effective At the date of authorisation of the financial report, the expected impacts of new or amended Australian Accounting Standards issued but with future commencement dates are set out below: AASB Amendments to Australian Accounting Standards Initiative: Amendments to AASB Disclosure From reporting periods beginning on or after 1 July 2017, this Standard amends AASB 107 Statement of Cash Flows and requires entities preparing financial statements in accordance with Tier 1 reporting requirements to provide additional disclosure that enable users of financial statements to evaluate changes in liabilities arising from financing activities. These disclosures will include both cash flows and non-cash changes between the opening and closing balance of the relevant liabilities and be disclosed by way of a reconciliation or roll forward as part of the notes to the statement of cash flows. The measurement of assets, liabilities, income and expenditure in the financial statements will be unaffected. AASB Related Party Disclosures From reporting periods beginning on or after 1 July 2016, EWOQ will need to comply with the requirements of AASB 124 Related Party Disclosures. That accounting standard requires a range of disclosures about the remuneration of key management personnel, transactions with related parties/entities, and relationships between parent and controlled entities. EWOQ already discloses information about the remuneration expenses for key management personnel in compliance with requirements from Queensland Treasury. Therefore, the most significant implications of AASB 124 for EWOQ's financial statements will be the disclosures to be made about transactions with related parties, including transactions with key management personnel or close members of their families. AASB 15 Revenue from Contracts with Customers This Standard will become effective from reporting periods beginning on or after 1 January 2018 and contains much more detailed requirements for the accounting for certain types of revenue from customers. Depending on the specific contractual terms, the new requirements may potentially result in a change to the timing of revenue from sales of EWOQ's services, such that some revenue may need to be deferred to a later reporting period to the extent that EWOQ has received cash but has not met its associated obligations (such amounts would be reported as a liability (unearned revenue) in the meantime). EWOQ is yet to complete its analysis of current arrangements for sale of its services, but at this stage does not expect a significant impact on its present accounting practices. 80 energy+water ombudsman QUEENSLAND Page 24

83 Financial Statements Notes to and forming part of the Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Future Impact of Accounting Standards Not Yet Effective (cont) AASB 9 Financial Instruments and AASB Amendments to Australian Accounting Standards arising from AASB 9 (December 2014) These Standards will become effective from reporting periods beginning on or after 1 January The main impacts of these standards on EWOQ are that they will change the requirements for the classification, measurement, impairment and disclosures associated with EWOQ's financial assets. AASB 9 will introduce different criteria for whether financial assets can be measured at amortised cost or fair value. EWOQ has commenced reviewing the measurement of its financial assets against the new AASB 9 classification and measurement requirements. However, as the classification of financial assets at the date of initial application of AASB 9 will depend on the facts and circumstances existing at that date, EWOQ's conclusions will not be confirmed until closer to that time. At this stage, and assuming no change in the types of transactions EWOQ enters into, all of EWOQ's financial assets are expected to be required to be measured at fair value. In the case of EWOQ's current receivables, as they are short-term in nature, the carrying amount is expected to be a reasonable approximation of fair value. Changes in the fair value of those assets will be reflected in EWOQ's operating result. Another impact of AASB 9 relates to calculating impairment losses for EWOQ's receivables. Assuming no substantial change in the nature of EWOQ's receivables, as they don't include a significant financing component, impairment losses will be determined according to the amount of lifetime expected credit losses. On initial adoption of AASB 9, EWOQ will need to determine the expected credit losses for its receivables by comparing the credit risk at that time to the credit risk that existed when those receivables were initially recognised. EWOQ will not need to restate comparative figures for financial instruments on adopting AASB 9 as from However, changed disclosure requirements will apply from that time. A number of one-off disclosures will be required in the financial statements to explain the impact of adopting AASB 9. Assuming no change in the types of financial instruments that EWOQ enters into, the most likely ongoing disclosure impacts are expected to relate to the credit risk of financial assets subject to impairment. All other Australian accounting standards and interpretations with future commencement dates are either not applicable to EWOQ's activities, or have no material impact on EWOQ. ANNUAL REPORT Page 25

84 Financial Statements Notes to and forming part of the Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Future Impact of Accounting Standards Not Yet Effective (cont) AASB 16 Leases This Standard will become effective for reporting periods beginning on or after 1 January When applied, the standard supersedes AASB 117 Leases, AASB Interpretation 4 Determining whether an Arrangement contains a Lease, AASB Interpretation 115 Operating Leases Incentives and AASB Interpretation 127 Evaluating the Substance of Transactions Involving the Legal Form of a Lease. Impact for Lessees Unlike AABS 117 Leases, AASB 16 introduces a single lease accounting model for lessees. Lessees will be required to recognise a right-of-use asset (representing rights to use the underlying leased asset) and a liability (representing the obligation to make lease payments) for all leases with a term of more than 12 months, unless the underlying assets are of low value. In effect, the majority of operating leases (as defined by the current AASB 117) will be reported on the statement of financial position under AASB 16. There will be a significant increase in assets and liabilities for agencies that lease assets. The impact on the reported assets and liabilities would be largely in proportion to the scale of the agency s leasing activities. The right-of-use asset will be initially recognised at cost, consisting of the initial amount of the associated lease liability, plus any lease payments made to the lessor at or before the commencement date, less any lease incentive received, the initial estimate of restoration costs and any initial direct costs incurred by the lessee. The right-of-use asset will give rise to a depreciation expense. The lease liability will be initially recognised at an amount equal to the present value of the lease payments during the lease term that are not yet paid. Current operating lease rental payments will no longer be expensed in the Statement of Comprehensive Income. They will be apportioned between a reduction in the recognised lease liability and the implicit finance charge (the effective rate of interest) in the lease. The finance cost will also be recognised as an expense. AASB 16 allows a cumulative approach rather than full retrospective application to recognising existing operating leases. If a lessee chooses to apply the cumulative approach, it does not need to restate comparative information. Instead, the cumulative effect of applying the standard is recognised as an adjustment to the opening balance of accumulated surplus (or other component of equity, as appropriate) at the date of initial application. EWOQ will await further guidance from Queensland Treasury on the transitional accounting method to be applied. EWOQ has not yet quantified the impact on the Statement of Comprehensive Income or the Statement of Financial Position of applying AASB 16 to its current operating leases, including the extent of additional disclosure required. 82 energy+water ombudsman QUEENSLAND

85 Financial Statements Notes to and forming part of the Financial Statements Key Management Personnel Disclosures Details of Key Management Personnel The following details for key management personnel include those positions that had authority and responsibility for planning, directing and controlling the activities of EWOQ during Energy and Water Ombudsman The Energy and Water Ombudsman is responsible for the efficient, effective and economic administration of EWOQ. Incumbent Contract Classification and Appointment Date of Initial Appointment Date of Resignation or Cessation Authority Former Temporarily Relieving Statutory Appointment by Governor in Council / Conditions equivalent to SES3.5 Executive Council Minute January July December 2015 General Manager Operations General Manager Operations has delegated accountability for leading the complaint investigation and dispute resolution functions of EWOQ. Incumbent Contract Classification and Appointment Authority Current Public Service Act 2008/SO3. 1 July 2007 Date of Initial Appointment Date of Resignation or Cessation Temporarily Relieving Public Service Act 2008/SO3. 4 January 2016 ANNUAL REPORT

86 Financial Statements Notes to and forming part of the Financial Statements Key Management Personnel Disclosures (cont) Details of Key Management Personnel (cont) Manager, Corporate Services The Manager Corporate Services manages the delivery of corporate services to EWOQ and ensures that all statutory reporting obligations of EWOQ are met. Incumbent Contract Classification and Appointment Authority Current Public Service Act 2008/SO3. 26 March 2008 Date of Initial Appointment Date of Resignation or Cessation Temporarily Relieving Manager, Policy and Research The Manager Policy and Research manages the provision of strategic advice and strategic development in relation to planning complex policies and emerging issues for EWOQ. Incumbent Contract Classification and Appointment Authority Current Public Service Act 2008/A June 2010 Date of Initial Appointment Date of Resignation or Cessation Temporarily Relieving 84 energy+water ombudsman QUEENSLAND

87 Financial Statements Notes to and forming part of the Financial Statements Key Management Personnel Disclosures (cont) Remuneration Policies With the exception of the Energy and Water Ombudsman the remuneration policy for EWOQ's key management personnel is set by the Queensland Public Service Commission as provided for under the Public Service Act The remuneration and other terms of employment of the Energy and Water Ombudsman are specified in the Governor in Council Appointment. For the year, remuneration of key management personnel increased by 2.5% in accordance with government policy. The following disclosures focus on the expenses incurred by EWOQ during the respective reporting periods that is attributable to key management positions. Therefore, the amounts disclosed reflect expenses recognised in the Statement of Comprehensive Income. Remuneration packages for key management personnel comprises the following components:- Short term employee benefits which include: salaries, allowances and leave entitlements earned and expensed for the entire year or for that part of the year during which the employee occupied the specified position. non-monetary benefits - consisting of provision of vehicle together with fringe benefits tax applicable to the benefit. Long term employee expenses include amounts expensed in respect of long service leave entitlements earned. Post-employment expenses include amounts expensed in respect of employer superannuation obligations. Termination benefits are not provided for within individual contracts of employment. Contracts of employment provide only for notice periods or payment in lieu of notice on termination, regardless of the reason for termination. ANNUAL REPORT

88 Financial Statements Notes to and forming part of the Financial Statements Key Management Personnel Disclosures (cont) KMP Remuneration Expense 1 July June 2016 Position (date resigned if applicable) Post- Short Term Employee Expenses Monetary Expenses Non-Monetary Benefits Long Term Employee Expenses Employment Expenses Termination Benefits $'000 $'000 $'000 $'000 $'000 $'000 Energy and Water Ombudsman General Manager Operations Manager, Corporate Services Manager, Policy and Research Total Remuneration Total Expenses 1 July June 2015 Position (date resigned if applicable) Post- Short Term Employee Expenses Monetary Expenses Non-Monetary Benefits Long Term Employee Expenses Employment Expenses Termination Benefits Total Expenses $'000 $'000 $'000 $'000 $'000 $'000 Energy and Water Ombudsman General Manager Operations Manager, Corporate Services Manager, Policy and Research Total Remuneration Performance payments No performance payments were made to the Key Management of EWOQ. 86 energy+water ombudsman QUEENSLAND

89 Financial Statements Notes to and forming part of the Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS First year Application of New Accounting Standards or Change in Policy Changes in Accounting Policy EWOQ did not voluntarily change any of its accounting policies during Accounting Standards Early Adopted for Two Australian Accounting Standards have been early adopted for the year as required by Queensland Treasury. AASB Amendments to Australian Accounting Standards Disclosure Initiative: Amendments to AASB 101 [AASB 7, AASB 101, AASB 134 & AASB 1049] The amendments arising from this standard seek to improve financial reporting by providing flexibility as to the ordering of notes, the identification and location of significant accounting policies and the presentation of sub-totals, and provides clarity on aggregating line items. It also emphasises only including material disclosures in the notes. EWOQ has applied this flexibility in preparing the financial statements, including co-locating significant accounting policies with the related breakdowns of financial statement figures in the notes. AASB Amendments to Australian Accounting Standards Fair Value Disclosures of Not-for-Profit Public Sector Entities [AASB 13] This standard amends AASB 13 Fair Value Measurement and provides relief to not-forprofit public sector entities from certain disclosures about property, plant and equipment that is primarily held for its current service potential rather than to generate future net cash inflows. The relief applies to assets under AASB 116 Property, Plant and Equipment which are measured at fair value and categorised within Level 3 of the fair value hierarchy. This amendment had no impact on EWOQ as all property, plant and equipment is recorded at cost (Refer note 10). Accounting Standards Applied for the First Time in No new Australian Accounting Standards effective for the first time in had any material impact on this financial report. ANNUAL REPORT

90 Financial Statements Notes to and forming part of the Financial Statements NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Taxation The is a state body as defined under the Income Tax Assessment Act 1936 and is exempt from Commonwealth taxation with the exception of Fringe Benefits Tax (FBT) and Goods and Services Tax (GST). FBT and GST are the only taxes accounted for by the Office of the Energy and Water Ombudsman. GST credits receivable from, and GST payable to the ATO, are recognised (refer to Note 9). 21. Going Concern Under Section 65(1) of the Energy and Water Ombudsman Act 2006 performance of the Energy and Water Ombudsman's functions is funded by fees imposed on each scheme participant. EWOQ will continue to meet its commitments as and when they fall due. 88 energy+water ombudsman QUEENSLAND

91 Financial Statements Certificate of the Office of the Energy and Water Ombudsman CERTIFICATE OF THE OFFICE OF THE ENERGY AND WATER OMBUDSMAN These general purpose financial statements have been prepared pursuant to s.62(1) of the Financial Accountability Act 2009 (the Act), section 43 of the Financial and Performance Management Standard 2009 and other prescribed requirements. In accordance with s.62(1)(b) of the Act we certify that in our opinion: (i) the prescribed requirements for establishing and keeping the accounts have been complied with in all material respects; and (ii) the financial statements have been drawn up to present a true and fair view, in accordance with prescribed accounting standards, of the transactions of the Office of the Energy and Water Ombudsman for the financial year ended 30 June 2016 and of the financial position of the office at the end of that year; and (iii) these assertions are based on an appropriate system of internal controls and risk management processes being effective, in all material respects, with respect to financial reporting throughout the reporting period. Grant Colquhoun Acting Manager, Corporate Services Date: Lynette Stevens Acting Energy and Water Ombudsman Date: ANNUAL REPORT

92 Independent Auditor s Report To the 90 energy+water ombudsman QUEENSLAND