Aurora Energy is one of the first retailers in Australia to adopt the Australian Energy Regulator’s Sustainable Payment Plan Framework, which provides greater assistance to vulnerable energy customers.
AER Chair Paula Conboy said the new Framework sets standards for retailers to meet when offering payment plans to customers and is effective from today (22 November 2016).
“While Tasmania continues to have one of the lowest rates of electricity disconnections nationally, at 0.5 per cent, more can be done to assist customers to manage energy debt,” Ms Conboy said.
“With Aurora Energy signing onto the framework, it is expected this will help Tasmanian households avoid electricity disconnections in the future.”
The AER today released its annual report on the retail energy market. The report looks at energy affordability as well as other indicators of the performance of retail energy markets, including assistance provided by retailers to customers experiencing payment difficulties, rates of disconnections for non-payment and customer service and complaint levels.[1]
“Energy bills remain a big expense for many people, with low income households in Tasmania spending on average 6.4 per cent of their disposable income (with a concession applied) on the electricity they need to run their homes,” Ms Conboy said.
“Just under 2.5 per cent of Tasmania households had an electricity debt at 30 June 2016, which is the lowest proportion of customers nationally.”
Whilst the instances of debt are low in Tasmania, the average debt reported is the second highest nationally at $739. Those entering hardship programs in Tasmania have the highest national debt at $1866 on average.
“We encourage customers who are struggling to pay their energy bills to contact their energy retailer early and ask for help, to avoid being disconnected,” Ms Conboy said.
The AER has also released its annual retail compliance report for 2015-16. TasNetworks was among eight energy businesses to be fined by the AER during the year for breaches of the National Energy Retail Law, paying $40,000 in penalties for failing to provide at least four business days’ notice of any disruption of service to life support customers.
“Breaches of life support obligations are potentially catastrophic and have been the focus of campaigns to increase community awareness and improve compliance,” Ms Conboy said.
“Results are being seen in improved network systems and processes to safeguard against potential breaches as they continue to work towards improved compliance. The campaign continues in 2016-17.”
About the AER
The Australian Energy Regulator regulates energy markets and networks under national legislation and rules in eastern and southern Australia, as well as networks in the Northern Territory. Its functions include:
- monitoring wholesale electricity and gas markets to ensure energy businesses comply with the legislation and rules, and taking enforcement action where necessary;
- setting the amount of revenue that network businesses can recover from customers for using networks (electricity poles and wires and gas pipelines) that transport energy;
- regulating retail energy markets in Queensland, New South Wales, South Australia, Tasmania (electricity only), and the ACT;
- operating the Energy Made Easy website, which provides a retail price comparator and other information for energy consumers;
- publishing information on energy markets, including the annual State of the energy market report, to assist participants and the wider community.
[1] These reports cover jurisdictions that have commenced the National Energy Retail Law. This includes Tasmania (electricity only) and the Australian Capital Territory from 1 July 2012, South Australia from 1 February 2013, New South Wales from 1 July 2014 and Queensland from 1 July 2015.