The Australian Energy Regulator today released its guidance Sustainable Payment Plans – a good practice framework for assessing customers’ capacity to pay (framework).
The framework aims to improve the quality of conversations between energy retailers and customers who are experiencing payment difficulties, providing guiding good practice principles and actions to assist retailers set up payment plans that are affordable and sustainable.
In developing the framework the AER worked collaboratively with a wide range of stakeholders, including large, medium and small energy retailers, consumer representatives, financial counsellors, ombudsman and other interested stakeholders.
The framework will be voluntary. In November 2016 we will publish a list on the AER website of those retailers who have indicated their business is meeting the framework’s standards. This will assist customers and their representatives know what to expect when dealing with a retailer, provide positive recognition for retailers who adopted the Framework, and promote transparency and accountability.
Background
This project follows our 2015 review of energy retailers’ customer hardship policies and practices.
Findings of that review included numerous examples of good practice in regard to some retailers’ approaches to negotiating affordable repayment amounts, but also practices and attitudes that contributed to poor customer outcomes.
We noted that we would work with retailers and other stakeholders to develop a good practice approach to help improve outcomes for customers.