2012 ANNUAL - SERVING QUEENSLANDERS SINCE 2007 - QUEENSLAND PARLIAMENT

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2012 ANNUAL - SERVING QUEENSLANDERS SINCE 2007 - QUEENSLAND PARLIAMENT
Serving Queenslanders since 2007

                                       07 - 08

                                       08 - 09

                                       09 - 10

                                       10 - 11

                                   annual
                                   report
                                   2012
2012 ANNUAL - SERVING QUEENSLANDERS SINCE 2007 - QUEENSLAND PARLIAMENT
Availability

Online
http://www.ewoq.com.au/Publicationsmedia/AnnualReports.aspx
Additional corporate information will be published online.

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 QLD 4101

Phone: 1800 662 837
Email: marketing@ewoq.com.au

ISSN: 1839-308X

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 1800
662 837 and we will arrange an interpreter for you, free of charge.

© Energy and Water Ombudsman Queensland 2012
2012 ANNUAL - SERVING QUEENSLANDERS SINCE 2007 - QUEENSLAND PARLIAMENT
Contents

Letter of compliance..................................................................................... 2

Snapshot of performance.............................................................................. 3

Energy and Water Ombudsman’s message.................................................... 4

Advisory Council Chair’s message................................................................ 5

Advisory Council to the Energy and Water Ombudsman Queensland........... 6
  • Members

About us........................................................................................................ 7
  • Our vision, mission and purpose
  • The scheme participants............................................................................................7

Our customers............................................................................................... 8
  • Graphs.........................................................................................................................8
  • Diversity......................................................................................................................8

Scheme performance.................................................................................... 9
  • Service Standards 2011-12........................................................................................9
  • EWOQ performance targets......................................................................................9
  • Scheme participant performance..............................................................................12
  • Customer outcomes...................................................................................................18
  • Finalising disputes......................................................................................................18
  • Customer Satisfaction Survey...................................................................................18

The    cases and issues..................................................................................... 19
  •    Overview of cases......................................................................................................19
  •    Description of EWOQ issues......................................................................................19
  •    Electricity.....................................................................................................................19
  •    Gas...............................................................................................................................30
  •    Water...........................................................................................................................35
  •    Systemic issues..........................................................................................................38

Our organisation............................................................................................ 42
  • Our staff.......................................................................................................................42

Working with stakeholders and the community........................................... 45

Financial statements..................................................................................... 48

Appendix 1: Glossary ................................................................................... 80
Appendix 2: Index of graphs and tables........................................................ 81
Appendix 3: Compliance checklist................................................................ 82

                                                                                                                                              1
ANNUAL REPORT 2011–2012                                                                                                                       1
2012 ANNUAL - SERVING QUEENSLANDERS SINCE 2007 - QUEENSLAND PARLIAMENT
minister letter

         3 September 2012

         The Honourable Mark McArdle MP
         Minister for Energy and Water Supply
         PO Box 15216
         CITY EAST QLD 4002

         Dear Minister

         I am pleased to present the Annual Report 2011-12 for Energy and Water
         Ombudsman Queensland.

         I certify that this Annual Report complies with:

         •   the prescribed requirements of the Energy and Water Ombudsman
             Act 2006, 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 report requirements can be found
         at appendix 3 or accessed at www.ewoq.com.au/AboutEWOQ/
         Corporatedocuments/AnnualReports.aspx

         Yours sincerely

         Forbes Smith
         Energy and Water Ombudsman

2                                                                                ANNUAL REPORT 2011–2012
2012 ANNUAL - SERVING QUEENSLANDERS SINCE 2007 - QUEENSLAND PARLIAMENT
Snapshot of Performance

Total number of cases received = 13,489.                    We also:

Total number of cases closed = 13,522 compared to           •   Made major improvements to our electronic case
12,702 last financial year.                                     management system.

Exceeded all of our service standards for the closure       •   Improved our internal communications through the
of cases.                                                       implementation of a system which allows visual
                                                                overhead images to each office for use as a training
Conducted a Customer Satisfaction Survey which                  and information tool.
found that:
                                                            •   Commenced a major project to consolidate and
•   82% of customers stated they were ‘very satisfied’          improve our operational policies and procedures and
    during their contact with EWOQ, compared to 72%             make them available to staff online.
    in 2010.
                                                            •   Undertook five quality assurance assessments of cases.
•   86% of total respondents found it ‘very easy’ to
    make a complaint to EWOQ.                               •   Conducted our first whole-of-office staff conference
                                                                with an emphasis on investigation and conciliation issues.
•   89% of total respondents said they received a clear
    indication of the process they needed to go through     •   Notified regulators of 83 systemic energy and water issues.
    in order to make a complaint and resolve their issue.
                                                            •   Conducted a staff survey with a view to understanding
•   94% of customers would recommend EWOQ to a                  those issues which are important to staff and
    friend if they had a complaint about their gas or           improving the organisational climate.
    electricity company that they couldn’t resolve.

•   Over half of all referred to higher level cases (64%)
    and investigations (57%) were resolved by EWOQ
    in the customers’ favour.

EWOQ’s website (www.ewoq.com.au) received 35,019
visits in 2011-12.

ANNUAL REPORT 2011–2012                                                                                                  3
2012 ANNUAL - SERVING QUEENSLANDERS SINCE 2007 - QUEENSLAND PARLIAMENT
Energy and Water Ombudsman’s message

On 1 July 2012, the office of the Energy and Water          The Office took on complaints about the provision of
Ombudsman Queensland celebrated five years of               water by the three distributor-retailers in South East
providing a free, fair and independent dispute resolution   Queensland on 1 January 2011. Consequently,
service to residential and other small electricity and      the 2011-2012 financial year was the first full year
reticulated gas customers. Since 1 January 2011, we         that we could report on water related complaints. In
have also provided the same service to residential and      comparison to electricity, the number of water complaints
small water customers in South East Queensland.             were relatively low at 7% of all complaints received.
                                                            The main issues for water customers were billing and
In that time, over 60,000 customers have contacted          customer service.
my office for assistance.
                                                            During the year, legislation was passed to dismantle
In 2011, an independent customer satisfaction survey        one of the water entities, Allconnex Water, and return
found that 82% of our customers were very satisfied         its responsibilities to three local councils. These councils
with our service, and 94% would recommend us to a           are also required to participate in the Ombudsman
friend who had a complaint about an energy or water         scheme on and from 1 July 2012.
provider they could not resolve.
                                                            I have immensely enjoyed my first year as Energy and
                                                            Water Ombudsman, especially the support and advice I
This overwhelming endorsement of my office is a tribute
                                                            have received from the EWOQ management team, the
to the good work of my predecessor, Mr Barry Adams,
                                                            staff, and the Advisory Council.
and all EWOQ staff over the years.

                                                            I want to particularly acknowledge the efforts of the
In our fifth year, and my first as Energy and Water
                                                            Chair of the Council, Ms Karen Chalmers-Scott. As
Ombudsman, we once again exceeded all of our
                                                            inaugural Chair, Karen has made a significant
performance indicators for closing complaints, despite a
                                                            contribution to EWOQ’s success in its first five years.
modest increase in the volume of complaints received.
                                                            Not one to rest on her laurels, Karen also introduced
                                                            some fresh initiatives in 2012 which further enhanced
As with previous years, high and disputed bills were
                                                            the role of the Council. On a personal note, I must
the biggest cause for complaint. Disputes about
                                                            thank her for the advice and support she provided
high bills sometimes conceal the real reason for the        to me during my first year as Ombudsman.
complaint; that the customer cannot pay their bill. Our
credit complaints – those which directly concern the        I have also found that scheme participants – those energy
capacity of a customer to pay their bill – also rose. At    and water providers within my jurisdiction – have, in the
the same time, the Queensland Competition Authority         main, cooperated with my investigators and provided
reported worrying numbers of people having their            information and advice to the office in a timely way.
power disconnected for non-payment of their bills.
Together, these statistics support the view that the cost   All of us at EWOQ look forward to another busy and
of electricity is placing great financial stress on many    successful year helping to resolve disputes between
in our community.                                           customers and energy and water entities.

                                                            Forbes Smith
                                                            Energy and Water Ombudsman
4                                                                                            ANNUAL REPORT 2011–2012
2012 ANNUAL - SERVING QUEENSLANDERS SINCE 2007 - QUEENSLAND PARLIAMENT
Advisory Council Chair’s message

The Energy and Water Ombudsman Queensland (EWOQ)               During the year, the Council farewelled Robert Leach
is recognised for its delivery of speedy, cost-effective and   (St Vincent de Paul) and Phil Craig (Origin Energy),
independent dispute resolution services. In achieving this,    both original Council members, and Helen Harding
some of EWOQ’s biggest challenges have come from its           (Queensland Urban Utilities). It welcomed David Mathers
external operating environment.                                (Unitywater), Jo Monger (AGL) and Mark Tucker-Evans
                                                               (COTA).
As essential services, energy and water underpin our
individual and collective wellbeing, standards of living       My five-year term as Chair concluded on 30 June 2012.
and livelihoods. They are also services delivered by           True to its responsibilities, the Council offered a lot of
industries that have been subject to much (and, in some        advice over those five years, across a broad front!
cases, almost continuous) legislative, regulatory, industry
and technological change. It’s critical that EWOQ is well      Ombudsman, Forbes Smith (as did his predecessor,
positioned to respond to the flow-on effect of external        Barry Adams) quickly recognised the Council’s collective
changes and developments, and the Ombudsman rightly            experience and expertise and has actively sought its input.
looks to the Advisory Council for assistance in this regard.   This has been much appreciated.

This year saw the Council take a more structured               To all Advisory Council members, past and present, thank
and proactive approach to its advice on external               you for your contributions and support. Special thanks
developments.  A new ‘early warning alert’ was added           go to three original Council members who have gone the
to the Council’s regular agenda. Ahead of each meeting,        distance with me—Ian Jarratt (Queensland Consumers
Council members draw on their industry and consumer            Association), Mike Swanston (ENERGEX) and Margaret
networks to contribute to a compilation report on              Campbell-Ryder (United Retail Federation).
emerging issues and possible road bumps ahead. As well
as making for some very interesting Council discussions,       It has been a privilege and a pleasure.
the Ombudsman confirms this new report is providing
valuable and ongoing early advice for him and his team.

EWOQ must also be able to confidently refer on problems        Karen Chalmers-Scott
that it identifies through its complaint handling, but         Chair
does not have the power to address. To this end, the           Advisory Council to the Energy
Council backed EWOQ’s initiative in working with other         and Water Ombudsman Queensland
Queensland agencies to clarify overlapping energy and
water roles, to minimise duplication and achieve faster
resolution of customer complaints. The Council also
supported a greater EWOQ focus on the identification
of systemic issues and its reporting of these to the
companies, regulators and government agencies
responsible for addressing them. This work is helping
achieve redress for affected energy and water customers
beyond those who contact EWOQ directly.

ANNUAL REPORT 2011–2012                                                                                                     5
2012 ANNUAL - SERVING QUEENSLANDERS SINCE 2007 - QUEENSLAND PARLIAMENT
Advisory Council to the Energy and Water Ombudsman

The Advisory Council to the Energy and Water                  2011-12 Council members
Ombudsman provides expert advice to the Energy and            Chair:
Water Ombudsman and the Minister responsible for              Karen Chalmers-Scott
energy and water on the effective and efficient conduct
and operation of the EWOQ scheme. This helps to ensure        Consumer representatives:
the scheme is administered in a manner which is fair and      •  Margaret Campbell-Ryder, United Retail Federation
just to consumers and suppliers.                              •  Ian Jarratt, Queensland Consumers Association
                                                              •  Robert Leach, St Vincent de Paul Society
The Advisory Council:                                            (until 31 December 2011)
•  monitors the Energy and Water Ombudsman’s                  •  Linda Parmenter, Queensland Council
   independence                                                  of Social Service
•  advises the Energy and Water Ombudsman on policy,          •  Roz Burtenshaw, Queensland Country
   procedural and operational issues relating to the 		          Women’s Association
   Energy and Water Ombudsman Act 2006                        •  Mark Tucker-Evans, Council of the Ageing Queensland
•  advises the Minister responsible for energy and               (from 1 January 2012)
   water on the funding of the Energy and Water
   Ombudsman’s functions                                      Industry representatives:
•  at the end of the financial year, advises the Minister     •   Tanya Acheson, Ergon Energy
   on the Energy and Water Ombudsman’s independence           •   Philip Craig, Origin Energy
   and functions of the office during the financial year.         (until 31 December 2011)
                                                              •   Helen Harding, Queensland Urban Utilities
The Advisory Council generally meets every two months             (until 31 December 2011)
and consists of an independent chair and at least six         •   Mike Swanston, ENERGEX
other members appointed by the Minister. The other            •   Kate Farrar, QEnergy
members must consist of members drawn from scheme             •   David Mathers, Unitywater
participants who represent the interests of scheme                (from 1 January 2012)
participants (industry members); and an equal number of       •   Jo Monger, AGL Energy Limited
members drawn from groups who represent the interests             (from 1 January 2012)
of consumers. Members must be appointed on the
chair’s recommendation, after consultation with scheme
participants, consumer groups and community welfare
organisations.

At least two of the industry members must represent
the interests of retailers and at least one of the industry
members must represent the interests of distributors. A
minimum of one industry member must be a member
who represents the interests of scheme participants that
are water entities.

6                                                                                         ANNUAL REPORT 2011–2012
About us

Our vision                                                  Table 1: EWOQ Scheme Participants 2011-12
A high performing, independent organisation making          Scheme Participant                          Product Type        Service Type
a valued contribution to an efficient and fair energy
                                                            AGL Sales (Queensland Electricity) Pty Ltd Electricity          Retailer
and water sector.
                                                            AGL Sales (Queensland) Pty Ltd              Gas                 Retailer
                                                            Allconnex Water                             Water               Distributor and Retailer
Our mission
                                                            APT Allgas Energy Pty Ltd                   Gas                 Distributor
To provide the people of Queensland with a timely,
                                                            Australian Power and Gas Pty Ltd            Electricity and Gas Retailer
effective, independent and just way of resolving
disputes with their energy and water supplier.              Click Energy Pty Ltd                        Electricity         Retailer
                                                            Dodo Power & Gas Pty Ltd                    Electricity         Retailer

Our PURPOSE                                                 ENERGEX Ltd                                 Electricity         Distributor

EWOQ receives, investigates and resolves disputes,          Envestra Ltd                                Gas                 Distributor
between Queensland’s small energy customers,                Ergon Energy Corporation Ltd                Electricity         Distributor
small water customers in South East Queensland              Ergon Energy Qld Pty Ltd                    Electricity         Retailer
and the energy and water retailers and distributors.        Essential Energy                            Electricity         Distributor
                                                            Lumo Energy                                 Electricity         Retailer
EWOQ also identifies, and reports, systemic issues          Maranoa Regional Council                    Gas                 Distributor and Retailer
arising from complaints received from customers.
                                                            Momentum Energy Pty Ltd                     Electricity         Retailer
                                                            Origin Energy Electricity Ltd               Electricity         Retailer
EWOQ achieves this through a process which is free,
                                                            Origin Energy Retail Ltd                    Gas                 Retailer
fair, accessible, accountable, effective and efficient.
                                                            Powerdirect Pty Ltd                         Electricity         Retailer
EWOQ takes into account the rights and responsibilities
of customers and scheme participants under relevant         QEnergy Pty Ltd                             Electricity         Retailer

legislation, codes and standards when resolving disputes.   Queensland Urban Utilities                  Water               Distributor and Retailer
                                                            Sanctuary Energy Pty Ltd                    Electricity         Retailer

The scheme participants                                     TRUenergy Pty Ltd                           Electricity         Retailer

All licensed energy suppliers in Queensland who supply      Unitywater                                  Water               Distributor and Retailer
small energy customers with electricity or reticulated      Western Downs Regional Council              Gas                 Distributor and Retailer
gas must become scheme participants. In addition,
three water distributor-retailers joined the scheme
on 1 January 2011.

A small energy customer is a customer who uses less
than 100 megawatts of electricity per year or less than
one terajoule of gas per year. Small water customers are
all residential water customers or other customers who
use less than 100 kilolitres of water per year in South
East Queensland.

ANNUAL REPORT 2011–2012                                                                                                                       7
OUR CUSTOMERS

Our customers                                                                                 table 2: Who contacted EWOQ
The majority of our customers were residents living                                                     2007-08 2008-09 2009-10 2010-11                2011-12
within EWOQ’s South Queensland region. While                                                  Residential        6,524    12,980     12,166   12,269    13,047
telephone was the most preferred option for our                                               Small Business       208       467        415      418       457
                                                                                              Government            11         9          9       15        18
customers to contact EWOQ the proportion of people
                                                                                              TOTAL              6,743    13,456     12,590   12,702    13,522
who did so declined. An increasing number of people
are choosing our online complaint form and email to
                                                                                              Table 3: How customers contacted
lodge complaints.
                                                                                              EWOQ over 5 years
 Graph 1: Who contacted EWOQ                                                                           2007-08 2008-09 2009-10 2010-11 2011-12
                                                                                              Telephone        6,436     12,452     11,159    10,135     9,919
4,000                                                                                         Web Site           61        320        647      1,194     1,880
                                                                                              Email             131        326        453       869      1,323
2,000
                                                                                              Letter             87        261        215       338        286
0,000                                                                                         In Person          15         55         44       107         62
8,000                                                                                         Fax                 13         42         72        59        52
                                                                                              TOTAL            6,743     13,456     12,590    12,702    13,522
6,000

4,000
                                                                                              Diversity
2,000                                                                                         EWOQ does not collect personal information about our
    -
                                                                                              customers, such as cultural diversity or people with
                    Residential                   Small Business           Government         disabilities, unless it is relevant to their case.
 2007-08          2008-09                   2009-10  2010-11        2011-12              However, this financial year, through the Australian
Over the past five years the vast majority of contacts with EWOQ are                          Government’s Translating and Interpreting Service we
from residential customers.
                                                                                              assisted customers who spoke the following languages:
                                                                                              •   Cantonese
 Graph 2: How customers contacted                                                             •   Russian
 EWOQ over 5 years                                                                            •   Hungarian
                                                                                              •   French
14,000
                                                                                              •   Korean
12,000                                                                                        •   Mandarin
                                                                                              •   Vietnamese
10,000
                                                                                              •   Dinka
 8,000                                                                                        •   Hazaragi
 6,000

 4,000

 2,000

        -
            Telephone

                                  Web Site

                                                    Email

                                                              Letter

                                                                          In Person

                                                                                        Fax

 2007-08          2008-09                   2009-10  2010-11        2011-12
In the past 12 months there has been an increase in the number of
customers contacting EWOQ either on-line or by email as opposed to
telephone contact.

8                                                                                                                                  ANNUAL REPORT 2011–2012
scheme performance

Scheme performance                                            Table 4: EWOQ Service Standards
The Commonwealth Government developed                         2011-12
benchmarks for industry-based customer dispute                                                          2011-12     2011-12 2011-12
resolution schemes which we (and many other                                                  Notes
                                                                                                     Target/est. Est. actual Actual
Ombudsman offices) use to measure the overall
                                                              Service standards
performance of our office.                                    Percentage of customers            1          80%          80%        82%
                                                              who rate the performance
These benchmarks are:                                         of the Energy and Water
•  accessibility                                              Ombudsman Queensland as
                                                              satisfactory or better
•  independence
                                                              Other measures
•  fairness
                                                              Percentage of complaints                     95%           95%        99%
•  accountability                                             received which are
•  efficiency                                                 completed by the Energy
•  effectiveness.                                             and Water Ombudsman
                                                              Queensland
                                                              Energy and water consumer                    90%           90%        98%
EWOQ plans its activities and measures its success            complaints resolved within
against these benchmarks. In addition, we must meet           agreed standards
these benchmarks to continue our membership of the            Notes: 1. EWOQ conducts Customer Satisfaction Surveys on a biennial basis.
Australian and New Zealand Ombudsman Association.
                                                              Table 5: EWOQ performance targets –
An independent review in 2010 found EWOQ met                  time taken to resolve complaints
the requirements for the industry benchmarks and              Timeframe to close cases
exceeded our customer satisfaction targets. This              Period               2009-10               2010-11             2011-12
was reported in the 2009-10 Annual Report. The next           Less than 28 days     11,274    90%      11,665      92%     12,120      90%
independent review is due in the 2012-13 financial year.      Less than 60 days     12,017    95%      12,345      97%     12,923      96%
                                                              Less than 90 days     12,272    97%      12,542      99%     13,260      98%
We also exceeded our service standards as outlined in         Over 90 days             318     3%         160       1%        262       2%
2011-12 Queensland State Budget – Service Delivery
Standards – Energy and Water Ombudsman Queensland.            Graph 3: Cases received and cases
(see Table 4). These standards form part of the Queensland    closed by type 2011-12
Government’s Performance Management Framework.               1500

                                                             1000

                                                              500

                                                               0

                                                              Case Received 2011-12      Case Closed 2011-12

                                                             The cases received and cases closed have been consistent over the
                                                             past 12 months, However, the increased contact with EWOQ during the
                                                             August/September and February/March periods are reflective of the end
                                                             of summer and end of winter billing periods resulting in more high bill
                                                             complaints being received.
ANNUAL REPORT 2011–2012                                                                                                                9
scheme performance

 Graph 4: Cases received vs cases                                                                              Graph 5: Average days to close cases
 closed over 5 years                                                                                           by month over 3 years

16,000                                                                                                        16

14,000                                                                                                        14

12,000                                                                                                        12

10,000                                                                                                        10

 8,000                                                                                                         8
 6,000                                                                                                         6
 4,000
                                                                                                               4
 2,000
                                                                                                               2
         -
                                                                                                               0
             2007-08        2008-09               2009-10      2010-11                2011-12

                                                                                                               2009-10        2010-11          2011-12

                                                                                                              The increase in days to close cases in the second half of 2011-12 is
                                                                                                              reflective of billing issues experienced with a larger retailer following
                                                                                                              the transitioning of their Queensland customers to a new billing system.

 Table 6: Cases received vs cases closed over 5 years
                               2007-08     2008-09                                                                                        2009-10            2010-11          2011-12
 Received                                                                     7,378                         13,245                         12,415             12,672            13,496
 Closed                                                                       6,743                         13,456                         12,590             12,702            13,522

Once again EWOQ closed more cases than it received in 2011-12.

 Graph 6: Comparison of closed complaints by primary issue over 3 years

6,000

5,000

4,000

3,000

2,000

1,000

     -
              Billing

                        Credit

                                      Customer
                                        Service

                                                        Land

                                                                  Marketing

                                                                                      Other

                                                                                                Provision

                                                                                                                     Supply

                                                                                                                               Transfer

 2009-10        2010-11         2011-12

Billing related issues such as high bills, incorrect fees and charges and delays in getting bills are the main cause for complaints received. These increased
by 15% in 2011-12. Credit related complaints regarding payment difficulties, threat of disconnection, disconnection and debt listings increased by 28%.

10                                                                                                                                                          ANNUAL REPORT 2011–2012
scheme performance

TABLE 7: Comparison of closed complaints by primary issue over 3 years
                                   2009-10              2010-11                                                                2011-12
Billing                                                                   5,505                           5,100                  5,868
Credit                                                                      832                           1,004                  1,302
Customer Service                                                          1,062                           1,332                  1,606
Land                                                                          47                                 52                 56
Marketing                                                                   824                              646                   259
Other                                                                       289                              297                   469
Provision                                                                   338                              500                   554
Supply                                                                      311                              269                   113
Transfer                                                                    719                           1,010                    878
TOTAL                                                                     9,927                          10,210                 11,105

Graph 7: Cases referred to other organisations over 3 years

800

700

600

500

400

300

200

100

  0
             Queensland Energy
              Regulator (DEWS)

                                           Office of
                                       Fair Trading

                                                       Queensland Water
                                                           Commission

                                                                          Queensland
                                                                          Competition
                                                                            Authority

                                                                                         Queensland
                                                                                        Ombudsman

                                                                                                           Australian Energy
                                                                                                            Regulator (AER)

 2009-10     2010-11            2011-12

The above graph represents complaints referred to other agencies when the complaint is not within EWOQ’s jurisdiction.

Table 8 Cases referred to other organisations over 3 years
                                    2009-10              2010-11                                                               2011-12
Queensland Energy Regulator (DEWS)                                             710                               650               490
Office of Fair Trading                                                         170                               336               613
Queensland Water Commission                                                        0                                      1         12
Queensland Competition Authority                                                 27                                  23             13
Queensland Ombudsman                                                               0                                 44             37
Australian Energy Regulator (AER)                                                0                             0                    10
TOTAL                                                                          907                         1,054                 1,175

ANNUAL REPORT 2011–2012                                                                                                            11
12
                            AGL Sales (Queensland
                                 Electricity) Pty Ltd
                                       AGL Sales
                              (Queensland) Pty Ltd

                                   Allconnex Water

                                                                                                                            10,000 customers closed 2011-12.
                          APT Allgas Energy Pty Ltd

                                  Australian Power
                                   and Gas Pty Ltd

                                Click Energy Pty Ltd

                      Dodo Power & Gas Pty Ltd

                                      ENERGEX Ltd

                                       Envestra Ltd
                                                                                                                                                                                                                                                                                                                                                                          scheme performance

      Ergon Energy Corporation Ltd

                          Ergon Energy Qld Pty Ltd

                                   Essential Energy

                                      Lumo Energy

                      Maranoa Regional Council

                    Momentum Energy Pty Ltd

                            Origin Energy Retail Ltd

               Origin Energy Electricity Ltd

                                Powerdirect Pty Ltd

                                   QEnergy Pty Ltd

                    Queensland Urban Utilities

                          Sanctuary Energy Pty Ltd

                                 TRUenergy Pty Ltd

                                         Unitywater

                                    Western Downs
                                   Regional Council

                                                        0		                     50		        100		   150		   200		   250   300

                                                         2009-10    2010-11    2011-12
                                                                                                                                                                                                                                                                                       Graph 8: COMPLAINTS PER SCHEME PARTICIPANT (PER 10,000 CUSTOMERS) CLOSED 2011-12
                                                                                                                            In recognition of the varying customer bases for scheme participants, we measure the number of complaints on a per capita basis, that is, complaints per

ANNUAL REPORT 2011–2012
0
                                                               10%
                                                                     20%
                                                                           40%
                                                                                 60%
                                                                                       80%
                                                                                             100%
                                                                                                                                                  0
                                                                                                                                                      10%
                                                                                                                                                            20%
                                                                                                                                                                  40%
                                                                                                                                                                        60%
                                                                                                                                                                              80%
                                                                                                                                                                                    100%
                               AGL Sales (Queensland                                                                  AGL Sales (Queensland
                                    Electricity) Pty Ltd                                                                   Electricity) Pty Ltd

                                                                                                                                                                                           
14
                                                           0
                                                               5%
                                                                    10%
                                                                          15%
                                                                                20%
                                                                                                                                        0
                                                                                                                                            10%
                                                                                                                                                  20%
                                                                                                                                                        40%
                                                                                                                                                              60%
                                                                                                                                                                    80%
                                                                                                                                                                          100%
                               AGL Sales (Queensland                                                        AGL Sales (Queensland
                                    Electricity) Pty Ltd                                                         Electricity) Pty Ltd

                                                                                                                                                                                 
scheme performance

Table 9: Scheme participant performance in closing cases
scheme performance

Graph 11: Complaints by scheme participant by CASE type for 2011-12

AGL Sales (Qld Electricity) Pty Ltd    Dodo Power & Gas Pty Ltd             Lumo Energy                queensland Urban Utilities

      AGL Sales (Qld) Pty Ltd                Energex Ltd             Momentum Energy Pty Ltd            Sanctuary Energy Pty Ltd

         Allconnex Water                      Envestra Ltd           Origin Energy Electricity Ltd         TRUenergy Pty Ltd

     APT Allgas Energy Pty Ltd        Ergon Energy Corporation Ltd    Origin Energy Retail Ltd                Unitywater

Australian Power & Gas Pty Ltd          Ergon Energy Qld Pty Ltd         PowerDirect Pty Ltd         Western Downs Regional Council

       Click Energy Pty Ltd                 Essential Energy               QEnergy Pty Ltd

16                                                                                                   ANNUAL REPORT 2011–2012
scheme performance

Graph 12: All closed cases by product type over 5 years

12000

10000

 8000

 6000

 4000

 2000

    0
                 Electricity

                                         Gas

                                                                  Water

 2007-08    2008-09           2009-10  2010-11    2011-12

Electricity complaints represent the vast majority of complaints received by EWOQ.

 Graph 13: All closed cases by product type 2011-12

 Electricity  Gas  Water

ANNUAL REPORT 2011–2012                                                              17
scheme performance

Customer Outcomes                                             Customer Satisfaction Survey
In 2011-12, we secured over 16,800 outcomes for over          In 2011, a customer satisfaction survey of EWOQ
9,100 customers. An outcome can include debt or fee           customers was undertaken by external market research
waiver, billing adjustment, credit default listing amended,   agency Colmar Brunton.
goodwill gesture, payment plan or hardship program            The survey identified a number of positive results
offered, reimbursement, or information provided by a          regarding the dispute resolution services provided by
scheme participant or EWOQ. In excess of $712,000 was         EWOQ to energy and water customers, as well as areas
delivered in monetary outcomes for customers.                 for improvement.

                                                              The survey found customer satisfaction was high and
Finalising DisputeS
                                                              had improved marginally since our last survey in 2010
On occasions, EWOQ cannot get the parties to agree. In        despite significant changes within EWOQ, and staff were
these circumstances there are a number of ways we can         responsible for high levels of customer satisfaction.
finalise the dispute.                                         The introduction of the Referral to Higher Level process
                                                              was found to be having a positive impact on customers,
Firstly, a decision can be made under section 22 of           however the handling of Referral to Higher Level and
the Energy and Water Ombudsman Act 2006 to not                water enquiries required more focus to be as streamlined
investigate or to discontinue the investigation. There        as investigations.
were twenty-six cases finalised in this way in 2011-12.
                                                              The survey found:
                                                              • 82% of customers were ‘very satisfied’
Secondly, the Ombudsman may decide under section                during their contact with EWOQ, compared to 72% in 2010
34 (2) of the Energy and Water Ombudsman Act 2006 to          • 86% of total respondents found it ‘very easy’ to make a
make or not to make an order in favour of a customer. In        complaint with EWOQ
2011-12 the Ombudsman decided not to make an order            • 89% of total respondents received a clear indication
on one occasion.                                                of the process they needed to go through in
                                                                order to make a complaint and resolve their issue
                                                              • 94% of customers would recommend EWOQ to a
Thirdly, if a matter cannot be resolved by negotiation
                                                                friend if they had a complaint about their gas or
or conciliation, the Energy and Water Ombudsman may
                                                                electricity company that they couldn’t resolve
decide to make a final order against the supplier to          • over half of all Referral to Higher Level cases (64%)
resolve a case. The Ombudsman can order energy and              and investigations (57%) were resolved by EWOQ in
water suppliers to:                                             the customers’ favour.
• pay compensation
• provide a non-monetary solution to remedy the dispute       There was also a high level of customer satisfaction with the:
• amend a stated charge under the Energy and Water            • independence and lack of bias of EWOQ
                                                              • opportunity given to customers to put their dispute
   Ombudsman Act 2006
                                                                to EWOQ
• cancel a negotiated contract, and/or
                                                              • information provided by EWOQ to customers on the
• carry out corrective work.                                    process that would be followed
                                                              • assistance provided by EWOQ to customers to present
All complaint investigations closed in 2011-12 were             their side of the case
resolved by negotiation/conciliation and did not              • frequency of updates on the progress of the
progress to final order level.                                  customer’s complaint.

                                                              The survey also identified a number of areas for
                                                              improvement and strategies to address these issues were
                                                              implemented during the year.
18                                                                                              ANNUAL REPORT 2011–2012
THE CASES AND ISSUES

Overview of cases                                                                        Electricity
Cases - all contacts with a customer, that is, general
                                                                                          Graph 14: Closed electricity cases by
enquiries, refer back to suppliers, Referral to Higher Levels,
                                                                                          primary issue 2011-12
investigations, and referrals (to other organisations).

Complaints – all cases that are billed to a scheme
participant, that is, refer back to suppliers, Referral to
Higher Levels and investigations.

Investigation – those complaints investigated by EWOQ.
Investigations can be a level 1, 2 or 3, depending on the
length of time taken to resolve the issue.

Table 11: Closed Electricity complaints
by primary issue by case type 2011-12
Issue      Investigation Refer Back   Referral to Total
                                    Higher Level
Billing                        1,093          1,446             2,462     5,001
Credit                           313            285               580     1,178
Customer Service                 110            541               743     1,394
Land                               8             17                12        37          Billing  Credit  Customers Service  Land  Marketing
Marketing                         26            103               123       252          Other  Provision  Supply  Transfer
Other                              0            256                89       345          Billing complaints relating to high bills, incorrect fees and charges,
Provision                        146            159               170       475          rebates and concessions not applied correctly and delays in getting bills
Supply                            13             46                28        87          represent over 50% of all electricity complaints received.
Transfer                         194            208               435       837
TOTAL                          1,903          3,061             4,642     9,606

Description of EWOQ issues

 Case issue                        Description
Billing                            A case issue relating to high/disputed bills, delays, errors, estimated accounts, fees and charges, rebates/concessions, tariff,
                                   meters, refunds etc.
Credit                             A case issue relating to payment difficulties, disconnection, bad debt etc.
Customer service                   A case issue relating to a scheme participant’s failure to inform/respond, incorrect advice, poor attitude/service, privacy issues etc.
Land                               A case issue relating to the impact of network assets, network maintenance, vegetation management etc.
Marketing                          A case issue relating to conduct by energy marketers, misleading information, pressure, non-account holder signed up etc.
Other                              A customer issue that does not fall into the other case types.
Provision                          A case issue relating to problems with new or existing connections etc.
Supply                             A case issue relating to the quality of energy supply, damage/loss, outages, sewerage overflow etc.
Transfer                           A case issue relating to errors in billing/transfer of account due to switching energy retailers, contract terms, delay in transfer,
                                   site ownership etc.
General enquiry                    A customer has a query about electricity, gas or water that is not a complaint.
Refer back to supplier             The customer has not contacted their supplier first to try and resolve the issue and the complaint is referred back to the supplier by
                                   EWOQ. EWOQ cannot investigate a complaint until the supplier has had the opportunity to resolve it first.
Referral to Higher Level (RHL)     EWOQ can refer a customer’s complaint to a higher level of authority at their suppliers before starting an investigation.
Referral (to other organisation)   If a case is outside EWOQ jurisdiction, we can refer it to another organisation we have a Memorandum of Understanding with
                                   including, the energy or water regulator, Office of Fair Trading, Queensland Competition Authority, Queensland Ombudsman or the
                                   Queensland Water Commission.

ANNUAL REPORT 2011–2012                                                                                                                                                 19
THE CASES AND ISSUES

Table 12: Closed electricity investigations by primary and secondary issue over 3 years
Primary issue       Secondary issue                           2009-10   2010-11    2011-12
Billing            No secondary issue recorded                     1           0             0
                   Backbill                                       86          57            49
                   Delay                                         139          70           109
                   Error                                         315         183           228
                   Estimation                                     54          64            68
                   Fees and charges                              182          64            25
                   High                                          457         419           377
                   Meter                                          62          58            49
                   Other                                         131         102            93
                   Rebate/Concession                              54          30            18
                   Refund                                         24          22            23
                   Tariff                                         31          25            54
Credit             Collection                                    128         146           137
                   Disconnection/Restriction                      73         115           121
                   Payment difficulties                           58          46            55
Customer Service   Failure to consult or inform                   11          15            11
                   Failure to respond                             41          27            41
                   Incorrect advice or information                31          24            23
                   Poor service                                   34          33            32
                   Poor/Unprofessional attitude                    7           5             1
                   Privacy                                         1           1             2
Land               Network assets                                  5           6             3
                   Other                                           7           7             2
                   Vegetation management                           2           4             3
Marketing          Information                                     5           4             1
                   Misleading                                     55          25            22
                   Non account holder                              7           2             0
                   Other                                          17          14             2
                   Pressure/Coercion                              11           2             1
Provision          Disconnection/Restriction                      45          67           105
                   Existing connection                            39          20            18
                   New connection                                 20          32            23
Supply             Off supply (planned)                            4           1             3
                   Off supply (unplanned)                         18           9             6
                   Quality                                         4           1             1
                   Sustainability initiatives                      2           1             0
                   Variation                                       4           4             3
Transfer           Billing                                        24           7            16
                   Contract terms                                 17          25            14
                   Cooling off rights                             11          17            22
                   Delay                                          41          13            26
                   In error                                       30          55            43
                   Objection/Rejected by retailer                 13           2             9
                   Site ownership                                 25           9            26
                   Without consent                                33          57            38

20                                                                     ANNUAL REPORT 2011–2012
THE CASES AND ISSUES

Electricity retailers

Table 13: Closed complaints by primary issue by electricity retailer over 3 years
Primary Issue             Scheme Participants                          2009-10    2010-11    2011-12
Billing                   AGL Sales (Queensland Electricity) Pty Ltd      2,015      1,087       672
                          Australian Power and Gas Pty Ltd                   6         62        126
                          Click Energy Pty Ltd                               0         16         46
                          Dodo Power & Gas Pty Ltd                           0          0          2
                          Ergon Energy Qld Pty Ltd                         164        208        192
                          Lumo Energy                                      542        353        265
                          Origin Energy Electricity Ltd                   2,076      2,403      3,115
                          Powerdirect Pty Ltd                               41         53         46
                          QEnergy Pty Ltd                                    0          0         10
                          Sanctuary Energy Pty Ltd                           0          1          6
                          TRUenergy Pty Ltd                                179        211        521
Billing Total                                                            5,023      4,394      5,001
Credit                    AGL Sales (Queensland Electricity) Pty Ltd       289        284        270
                          Australian Power and Gas Pty Ltd                   2          1         23
                          Click Energy Pty Ltd                               0          0          5
                          Ergon Energy Qld Pty Ltd                          94         84         47
                          Lumo Energy                                       52         37         40
                          Origin Energy Electricity Ltd                    324        498        675
                          Powerdirect Pty Ltd                                2          2          6
                          QEnergy Pty Ltd                                    0          0          2
                          TRUenergy Pty Ltd                                 27         32        110
Credit Total                                                               790        938      1,178
Customer Service          AGL Sales (Queensland Electricity) Pty Ltd       279        247        160
                          Australian Power and Gas Pty Ltd                   3         15         34
                          Click Energy Pty Ltd                               0          3          7
                          Ergon Energy Qld Pty Ltd                          31         69         55
                          Lumo Energy                                      121        126         55
                          Origin Energy Electricity Ltd                    431        494        742
                          Powerdirect Pty Ltd                                6         12         15
                          QEnergy Pty Ltd                                    0          0          1
                          Sanctuary Energy Pty Ltd                           0          2          6
                          TRUenergy Pty Ltd                                 35         71        130
Customer Service Total                                                     906      1,039      1,205
General / Enquiry*        Ergon Energy Qld Pty Ltd                           1          0          0
                          Lumo Energy                                        1          0          0
General / Enquiry Total                                                      2          0          0
Land*                     Ergon Energy Qld Pty Ltd                           2          0          0
                          Lumo Energy                                        1          0          0
                          Origin Energy Electricity Ltd                      2          0          0
Land Total                                                                   5          0          0
Marketing                 AGL Sales (Queensland Electricity) Pty Ltd       238        114         49
                          Australian Power and Gas Pty Ltd                   4         48         41
                          Click Energy Pty Ltd                               0          3          0
                          Ergon Energy Qld Pty Ltd                           2          0          0
                          Lumo Energy                                      139        140         25
                          Origin Energy Electricity Ltd                    375        187         46

ANNUAL REPORT 2011–2012                                                                           21
THE CASES AND ISSUES

Table 13: Closed complaints by primary issue by electricity retailer over 3 years continued
Primary Issue      Scheme Participants                           2009-10   2010-11    2011-12
                                    Powerdirect Pty Ltd                                                    21              3           0
                                    QEnergy Pty Ltd                                                         0              0           1
                                    Sanctuary Energy Pty Ltd                                                0              0           6
                                    TRUenergy Pty Ltd                                                      26            141          84
Marketing Total                                                                                          805            636         252
Other                               AGL Sales (Queensland Electricity) Pty Ltd                             68             31          44
                                    Australian Power and Gas Pty Ltd                                        0              7          12
                                    Click Energy Pty Ltd                                                    0              1           1
                                    Ergon Energy Qld Pty Ltd                                                9             19          26
                                    Lumo Energy                                                            18              9          16
                                    Origin Energy Electricity Ltd                                         126             85         144
                                    Powerdirect Pty Ltd                                                     0              0           7
                                    QEnergy Pty Ltd                                                         0              0           1
                                    Sanctuary Energy Pty Ltd                                                0              0           1
                                    TRUenergy Pty Ltd                                                       8              8          27
Other Total                                                                                              229            160         279
Provision                           AGL Sales (Queensland Electricity) Pty Ltd                             84             86          49
                                    Australian Power and Gas Pty Ltd                                        0              8          14
                                    Click Energy Pty Ltd                                                    0              3           0
                                    Country Energy                                                          0              0           0
                                    Energy Australia                                                        0              0           0
                                    Ergon Energy Qld Pty Ltd                                               13             22          35
                                    Lumo Energy                                                            12             11          16
                                    Momentum Energy Pty Ltd                                                 0              1           1
                                    Origin Energy Electricity Ltd                                         103            157         192
                                    Powerdirect Pty Ltd                                                     1              4           2
                                    Sanctuary Energy Pty Ltd                                                0              2           0
                                    TRUenergy Pty Ltd                                                       5             26          36
Provision Total                                                                                          218            320         345
Supply*                             AGL Sales (Queensland Electricity) Pty Ltd                             37             24           0
                                    Ergon Energy Qld Pty Ltd                                               15             19           0
                                    Lumo Energy                                                             8              9           0
                                    Origin Energy Electricity Ltd                                          79             52           0
                                    Powerdirect Pty Ltd                                                     2              3           0
                                    QEnergy Pty Ltd                                                         0              1           0
                                    TRUenergy Pty Ltd                                                       5              5           0
Supply Total                                                                                             146            113           0
Transfer                            AGL Sales (Queensland Electricity) Pty Ltd                            219            181         126
                                    Australian Power and Gas Pty Ltd                                        0             52          46
                                    Click Energy Pty Ltd                                                    0              8          10
                                    Dodo Power & Gas Pty Ltd                                                0              0           2
                                    Ergon Energy Qld Pty Ltd                                                1              6           0
                                    Lumo Energy                                                           100            258         143
                                    Origin Energy Electricity Ltd                                         318            237         228
                                    Powerdirect Pty Ltd                                                    10             24           7
                                    QEnergy Pty Ltd                                                         0              1           6
                                    Sanctuary Energy Pty Ltd                                                0              0           1
                                    TRUenergy Pty Ltd                                                      36            192         268
Transfer Total                                                                                            684            959         837
TOTAL                                                                                                   8,808          8,559       9,097
* Please note due to changes in the categorisation of these variables this data is captured elsewhere

22                                                                                                              ANNUAL REPORT 2011–2012
THE CASES AND ISSUES

Graph 15: Complaints by case type for each electricity retailer over 3 years
 2009-10              2010-11         2011-12

AGL Sales (Queensland Electricity) Pty Ltd                                                                                                     Momentum Energy Pty Ltd

2500

2000

1500

1000

 500

     0
         Billing

                          Credit

                                       Customer
                                         Service

                                                        Marketing

                                                                                    Other

                                                                                                    Provision

                                                                                                                    Supply*

                                                                                                                                  Transfer

Australian Power and Gas Pty Ltd

150

100
                                                                                                                                               Origin Energy Electricity

 50                                                                                                                                            3500
                                                                                                                                               3000

     0                                                                                                                                         2500
                                                                                                                                               2000
            Billing

                             Credit

                                            Customer
                                              Service

                                                                        Marketing

                                                                                            Other

                                                                                                                      Provision

                                                                                                                                  Transfer

                                                                                                                                               1500
                                                                                                                                               1000
                                                                                                                                                500

Click Energy Pty Ltd                                                                                                                                0
                                                                                                                                                           Billing

                                                                                                                                                                     Credit

                                                                                                                                                                              Customer
                                                                                                                                                                                Service

                                                                                                                                                                                             Land*

                                                                                                                                                                                                                 Marketing

                                                                                                                                                                                                                                 Other

                                                                                                                                                                                                                                                     Provision

                                                                                                                                                                                                                                                                       Supply*

                                                                                                                                                                                                                                                                                      Transfer

50

40
                                                                                                                                               Powerdirect
30

                                                                                                                                               60
20
                                                                                                                                               50
10                                                                                                                                             40
                                                                                                                                               30
 0                                                                                                                                             20
           Billing

                              Credit

                                           Customer
                                             Service

                                                                    Marketing

                                                                                            Other

                                                                                                                Provision

                                                                                                                                    Transfer

                                                                                                                                               10
                                                                                                                                                0
                                                                                                                                                        Billing

                                                                                                                                                                     Credit

                                                                                                                                                                                 Customer
                                                                                                                                                                                   Service

                                                                                                                                                                                                     Marketing

                                                                                                                                                                                                                             Other

                                                                                                                                                                                                                                         Provision

                                                                                                                                                                                                                                                                 Supply*

                                                                                                                                                                                                                                                                                 Transfer

ANNUAL REPORT 2011–2012                                                                                                                                                                                                                                                                          23
0
                                                                                                                                                                                                                                            0.5
                                                                                                                                                                                                                                                  1
                                                                                                                                                                                                                                                      1.5
                                                                                                                                                                                                                                                                2

                                             0
                                                  100
                                                        200
                                                               300
                                                                     400
                                                                           500
                                                                                   600

24
                                                                                                                                0
                                                                                                                                    50
                                                                                                                                         100
                                                                                                                                                   150
                                                                                                                                                         200
                                                                                                                                                                            250
                                 Billing                                                                              Billing

                                                                                                                                                                                                                                                                                                       2009-10
                                  Credit
                                                                                                                       Credit

                                                                                             Lumo Energy
                              Customer                                                                          Customer

                                                                                                                                                                                                                                                                                                       2010-11
                                Service                                                                           Service
                              General /                                                                          General /
                              Enquiry*                                                                           Enquiry*

                                                                                                                                                                                                                             Billing
                                 Land*                                                                                Land*

                                                                                                                                                                                                                                                                                                       2011-12

                                                                                                                                                                                                                                                                         Dodo Power and Gas Pty Ltd
                                                                                                               Marketing
                             Marketing

                                                                                                                                                                                       Ergon Energy Queensland Pty Ltd
                                                                                                                       Other
                                  Other

                                                                                                                Provision
                              Provision
                                                                                                                                                                                                                                                                                                                                                                                                           THE CASES AND ISSUES

                                                                                                                 Supply*
                               Supply*

                                                                                                                                                                                                                             Transfer
                                                                                                                     Transfer
                               Transfer

                                                                                                                      0
                                                                                                                           1
                                                                                                                                2
                                                                                                                                    3
                                                                                                                                         4
                                                                                                                                               5
                                                                                                                                                   6
                                                                                                                                                                                                                         0
                                                                                                                                                                                                                                        2
                                                                                                                                                                                                                                            4
                                                                                                                                                                                                                                                  6
                                                                                                                                                                                                                                                            8
                                                                                                                                                                                                                                                                    10

                                       0
                                           100
                                                 200
                                                       300
                                                              400
                                                                     500
                             Billing
                                                                                                           Billing
                                                                                                                                                                                                                                                                         QEnergy

                                                                                                                                                                                   Billing

                                                                                 TRUenergy
                             Credit
                                                                                              Customer                                                                              Credit

                                                                                                                                                         Sanctuary Energy
                                                                                                Service
                          Customer
                            Service

                                                                                                                                                                             Customer
                                                                                                                                                                               Service
                          Marketing                                                          Marketing

                                                                                                                                                                             Marketing
                             Other
                                                                                                           Other

                          Provision                                                                                                                                                 Other

                                                                                               Provision
                                                                                                                                                                                  Supply*
                           Supply*

                           Transfer
                                                                                                   Transfer                                                                       Transfer
                                                                                                                                                                                                                                                                                                                  Graph 15: Complaints by case type for each electricity retailer over 3 years continued

ANNUAL REPORT 2011–2012
THE CASES AND ISSUES

Case studies - Electricity retailers

Case Study 1: Frustrated by procedure                             Outcome: We investigated the issue and requested
A customer contacted EWOQ as she had been in dispute              information from the retailer regarding the customer’s
with her retailer about the size of her bill. On contacting       contract. As a result of our investigation and through
the retailer the customer was advised the bill was                negotiation with the retailer, we were able to obtain
based on an actual meter reading and to monitor her               agreement from the retailer to retrospectively transfer
usage. After she transferred to a new retailer her energy         the customer back to her previous retailer. The retailer
consumption was significantly lower than with her                 also waived the remaining bill and offered the customer
previous retailer. The customer then received a phone call        a goodwill gesture of $100.
from a debt collection agency about her outstanding bill.
She contacted EWOQ to determine if the bills received             Case Study 3: Insult added to injury
from her previous retailer were accurate and based on             The customer had solar panels and a solar meter installed in
actual meter readings. If not the customer requested              2009, at which time the electrician contacted the distributor
that her previous retailer issue her with a credit and            and requested the removal of the off-peak meter. This was
discontinue the debt collection.                                  not done. Over the years the customer contacted his retailer
                                                                  trying to have the meter removed and to be reimbursed
Outcome: We contacted the retailer and requested a                for the minimum service fee for the meter. The customer
high bill investigation be undertaken together with               eventually contacted EWOQ seeking assistance.
confirmation that the customer had been billed on actual
meter readings and not estimated ones. We also requested          Outcome: We contacted the retailer who confirmed that
information on the customer’s usage history.                      the meter should have been removed in early 2010.
                                                                  After discussing the matter with us, the retailer also
Through our intervention the retailer confirmed that              compensated the customer by applying a credit to the
the bills were based on actual meter readings and as a            customer’s account, waived the fees charged for the
gesture of goodwill, the retailer waived the customer’s           period the off-peak meter was not removed and offered
outstanding debt. In addition, the retailer withdrew the          the customer a goodwill gesture of $75.
debt from the debt collection agency.
                                                                  Case Study 4: Pensioners try to do the right thing
Case Study 2: Poor customer service                               A customer received a letter from her retailer advising
The customer entered into an agreement with a retailer            that she was entitled to a $4,500 solar rebate. The
that included receiving a 10% discount. The customer also         customer’s husband contacted the retailer to confirm that
requested the account be in her name as her late father           this was correct and requested payment of the rebate by
had passed away a number of years earlier. When the               cheque. As the couple received a pension from Centrelink,
customer received her account it was in her late father’s         the customer advised Centrelink of the additional income,
name and although she had tried to resolve the issue on a         which resulted in a fortnightly decrease to their pension
number of occasions with her retailer, the retailer would only    entitlement. Subsequently, the customer received a bill
discuss the account with the account holder (her late father).    from her retailer stating she owed $4,500.

The customer contacted EWOQ to obtain assistance                  Outcome: The customer contacted us very concerned that
in cancelling the contract in her father’s name and               she and her husband would have to repay the money
retrospectively transferring her back to her previous retailer.   which would be a struggle for them. We contacted the

ANNUAL REPORT 2011–2012                                                                                                      25
THE CASES AND ISSUES

retailer to determine the cause of the error and negotiate     Outcome: As a result of our intervention, the retailer
a solution acceptable to both parties. We pointed out to       provided the customer with an accurate bill. However, the
the retailer that under s.4.11.1 of the Electricity Industry   retailer sought to back bill the customer for 3 years. This is
Code (the Code) customers cannot be required to repay          prohibited by the Code. We again intervened and the bill
any money paid to them due to retailer error. Through our      was reduced by approximately $10,000.
negotiation, the retailer revised the customer’s account
to comply with the Code, rebilled the customer for the
correct amount, and offered a goodwill gesture.

Case Study 5: Lack of communication leads to
threats of disconnection
A customer received a high electricity bill which he
disputed as he had been overseas for the majority of
the billing period and his solar generation had covered
his usage. When the customer contacted his retailer, the
retailer confirmed that he had been overcharged and the
account would be corrected. This was not done and the
customer started receiving disconnection warning notices
from his retailer.

Outcome: The customer contacted us for assistance in
having the bill investigated. Through negotiation and
conciliation, we arranged for the retailer to issue a new
bill to the customer. The retailer also apologised for any
inconvenience to the customer and offered a goodwill
gesture of $50.

Case Study 6: No reason for concern
A customer contacted EWOQ after trying to resolve an
issue with his retailer since 2008 regarding a meter used
for crop irrigation.

The customer had received a final bill for this meter,
which he had not requested. Concerned about being
disconnected, the customer contacted the retailer and
was advised the issue had been resolved. Over the next
two years, the customer continued to pay his bills and
thought no more of it, until a contractor attended to
disconnect the meter. The customer contacted his retailer
and was again advised the issue had been resolved. In
June 2011, the customer was told by his retailer that he
had been illegally using electricity and had 12 days to
rectify the situation.
26                                                                                               ANNUAL REPORT 2011–2012
THE CASES AND ISSUES

Electricity distributors

Table 14: Closed complaints by primary issue by electricity distributor over 3 years
Primary Issue          Scheme Participant             2009-10       2010-11      2011-12
Billing                   ENERGEX Ltd                       19            6             0
                          Ergon Energy Corporation Ltd       6            3             0
Billing Total                                               25            9             0
Credit                    ENERGEX Ltd                        1            0             0
Credit Total                                                 1            0             0
Customer Service          ENERGEX Ltd                       71          129           151
                          Ergon Energy Corporation Ltd      14           31            38
Customer Service Total                                      85          160           189
Land                      ENERGEX Ltd                       29           23            21
                          Ergon Energy Corporation Ltd      13           27            16
Land Total                                                  42           50            37
Other                     ENERGEX Ltd                       31           40            55
                          Ergon Energy Corporation Ltd       3            3            11
Other Total                                                 34           43            66
Provision                 ENERGEX Ltd                       65           78            88
                          Ergon Energy Corporation Ltd      27           35            41
                          Essential Energy                   0            2             1
Provision Total                                             92          115           130
Supply                    ENERGEX Ltd                       82           77            61
                          Ergon Energy Corporation Ltd      51           38            25
                          Essential Energy                   0            0             1
Supply Total                                               133          115            87
Transfer                  Essential Energy                   1            0             0
Transfer Total                                               1            0             0
TOTAL                                                      413          492           509

ANNUAL REPORT 2011–2012                                                               27
THE CASES AND ISSUES

 Graph 16: Closed complaints by primary issue by electricity distributor over 3 years
 2009-10          2010-11      2011-12

Energex ltd

200

150

100

 50

  0
        Billing

                      Credit

                                   Customer
                                     Service

                                                 Land

                                                          Other

                                                                    Provision

                                                                                     Supply

                                                                                                         Transfer

Ergon Energy Corporation Ltd

60
50
40
30
20
10
 0
      Billing

                       Credit

                                    Customer
                                      Service

                                                 Land

                                                         Other

                                                                  Provision

                                                                                    Supply

                                                                                                        Transfer

Essential Energy

 2

1.5

 1

0.5

 0
        Billing

                       Credit

                                  Customer
                                    Service

                                                Land

                                                        Other

                                                                        Provision

                                                                                             Supply

                                                                                                      Transfer

28                                                                                                                  ANNUAL REPORT 2011–2012
THE CASES AND ISSUES

Case studies - Electricity distributors

Case Study 1: No form no work                                distributor’s work crew was in the immediate area the
A customer’s house had been badly damaged by fire and        crew did not attend the customer’s home to restore his
she planned to demolish it. When the customer contacted      power. As a result, we were able to negotiate with the
the retailer, she was advised it may take up to 20 days to   distributor for a reversal of the pass through charge.
get the service line removed. Further delay in having the
line removed would financially impact the customer as the    Case Study 3: Planned outage but no advice
demolition crew had been booked to demolish the              A customer who runs a business from home contacted
house on a specific date.                                    EWOQ as he and his neighbours did not receive prior
                                                             notice from the distributor of a planned outage. A
Outcome: We contacted the distributor and were told that     planned outage occurs when the distributor undertakes
certain paperwork was required from the retailer before      maintenance work on an electricity line or transformer
the service line could be removed. With our assistance       during business hours. When the customer contacted the
the customer completed and submitted the necessary           distributor he was advised that notices had been sent to
form through her retailer to the distributor. The service    households affected by the planned outage.
was removed and the demolition proceeded as planned.
                                                             Outcome: When we investigated the issue, the distributor
Case Study 2: Plans go astray                                admitted that it was possible no notice had been sent to
A customer advised that there had been a bad storm in his    the customer or his neighbours as the map the distributor
area and he lost power at his home. The customer noticed     used to coordinate advice to residents about planned
his neighbours’ lights were still on so he contacted the     outages did not include their properties. As a distributor
distributor who suggested he check the switches on his       is required to provide at least two business days’ notice to
meter board. After the customer checked the switches         residential properties for planned outages the customer
his power was restored and he subsequently contacted         was entitled to a Guaranteed Service Level payment. As
the distributor and advised his power had been restored.     a result of our intervention, the distributor offered the
The customer later received a bill from his retailer with    customer a Guaranteed Service Level payment of $26.00.
a charge of $250.00 for a site visit. When the customer
contacted his retailer he was advised this was a pass
through charge from the distributor. A pass through
charge is a charge from the distributor passed directly
onto the customer from the retailer. The customer
contacted the distributor who advised a crew had
attended his premises to restore his power. The customer
disputed this and as he had solar PV panels installed at
around the same time as the storm thought the distributor
may have had the work orders confused.

Outcome: We investigated the issue and contacted the
distributor to request an explanation for the charge, and
documentation regarding the work order. Although the

ANNUAL REPORT 2011–2012                                                                                               29
THE CASES AND ISSUES

Gas

Graph 17: Closed gas complaints by                                           Table 15: Closed gas complaints by
primary issue 2011-12                                                        primary issue by case type 2011-12
                                                                                         Investigation Refer Back  Referral   Total
                                                                                                                  to Higher
                                                                                                                      Level
                                                                             Billing                74        119       219    412
                                                                             Credit                 39        17         43     99
                                                                             Customer Service       18        24         60    102
                                                                             Land                    0         1         0       1
                                                                             Marketing               0         4         3       7
                                                                             Other                   0        17         3      20
                                                                             Provision              22        24         20     66
                                                                             Supply                  2         5         5      12
                                                                             Transfer               14          8        19     41
                                                                             TOTAL                 169        219       372    760

 Billing  Credit  Customers Service  Land  Marketing
 Other  Provision  Supply  Transfer

Gas complaints relating to high bills, incorrect fees and charges, rebates
and concessions not applied correctly, and delays in getting bills,
represented over 50% of all gas complaints received.

30                                                                                                        ANNUAL REPORT 2011–2012
THE CASES AND ISSUES

Gas retailers

Table 16: Closed complaints by primary issue by Gas retailer over 3 years
Primary Issue        Scheme Participants                 2009-10     2010-11                                        2011-12
Billing                                  AGL Sales (Queensland) Pty Ltd                                 288   238       115
                                         Australian Power and Gas Pty Ltd                                 3     1         9
                                         Maranoa Regional Council                                         0     1         0
                                         Origin Energy Retail Ltd                                       114   144       287
                                         Western Downs Regional Council                                   1     0         1
Billing Total                                                                                           406   384       412
Credit                                   AGL Sales (Queensland) Pty Ltd                                  22    24        33
                                         Australian Power and Gas Pty Ltd                                 0     1         0
                                         Origin Energy Retail Ltd                                        17    36        66
Credit Total                                                                                             39    61        99
Customer Service                         AGL Sales (Queensland) Pty Ltd                                  35    35        31
                                         Australian Power and Gas Pty Ltd                                 0     0         1
                                         Origin Energy Retail Ltd                                        16    30        62
Customer Service Total                                                                                   51    65        94
Marketing                                AGL Sales (Queensland) Pty Ltd                                   7     7         4
                                         Australian Power and Gas Pty Ltd                                 0     1         0
                                         Origin Energy Retail Ltd                                         3     2         3
Marketing Total                                                                                          10    10         7
Other                                    AGL Sales (Queensland) Pty Ltd                                   8     2         2
                                         Australian Power and Gas Pty Ltd                                 1     0         1
                                         Origin Energy Retail Ltd                                         9     8        16
Other Total                                                                                              18    10        19
Provision                                AGL Sales (Queensland) Pty Ltd                                   7    23        18
                                         Australian Power and Gas Pty Ltd                                 0     0         1
                                         Origin Energy Retail Ltd                                        16    26        39
Provision Total                                                                                          23    49        58
Supply*                                  AGL Sales (Queensland) Pty Ltd                                   5     5         0
                                         Origin Energy Retail Ltd                                        14    16         0
Supply Total                                                                                             19    21         0
Transfer                                 AGL Sales (Queensland) Pty Ltd                                  12    34        19
                                         Australian Power and Gas Pty Ltd                                 0     4         4
                                         Origin Energy Retail Ltd                                        13    13        18
Transfer Total                                                                                           25    51        41
TOTAL                                                                                                   591   651       730
* Please note due to changes in the categorisation of these variables this data is captured elsewhere

ANNUAL REPORT 2011–2012                                                                                                 31
THE CASES AND ISSUES

Case studies – Gas retailers

Case Study 1: Advice helps ease bill shock                     had been forwarded to the distributor. Following our
Where a complaint concerns a high bill, EWOQ can assist        investigation the service order was provided to the
in several ways. In this case, we assisted the customer        distributor and the customer’s gas meter installed.
in understanding his bills and a number of inquiries
confirmed the accuracy of the bill. The customer came          Case Study 3: Harsh consequences for person in need
to EWOQ concerned about the number of estimated                A customer entered into a payment plan with her retailer
bills he had received since 2009, and the size of his most     for an outstanding bill of $400. When the customer
recent bill which was greater than the last two years’ bills   missed one payment her gas supply was disconnected.
combined. The customer wanted to ensure his retailer had       The customer advised EWOQ that she had informed
obtained an accurate meter reading and that in the future      her retailer she was experiencing financial hardship but
he would receive fewer estimated bills.                        the retailer did not provide any information about its
                                                               hardship program or the government assistance available
Outcome: We investigated the issue and asked the               through the Home Energy Emergency Assistance Scheme
retailer to conduct a high bill investigation to ensure the    (HEEAS). The customer contacted EWOQ to assist with
accuracy of the bill. As part of our investigation, we also    having her gas supply reconnected as soon as possible, to
requested copies of the customer’s accounts and usage          request that she be considered for the retailer’s hardship
history. Insofar as the estimated bills were concerned,        program together with an application for HEEAS, and to
the investigation confirmed that the meter readers had         be able to reinstate her payment plan at $50 per fortnight.
experienced difficulties in accessing the customer’s meter.
Consequently, the retailer had to estimate the customer’s      Outcome: We contacted the retailer and arranged for the
usage based on his previous history. The last, and             customer’s gas supply to be reconnected. As a result of
highest, bill was based on an actual reading of the meter      our negotiation with the retailer, the retailer also agreed
and it is not uncommon for such bills to be more than          to re-establish the customer’s payment plan and discuss
previous ones given they were based on estimates only.         with the customer its hardship program. In addition, the
Nevertheless, a good will gesture of $400 was offered by       retailer agreed to provide the customer with information
the retailer because of the number of bills which had been     on the government assistance available through HEEAS
based on estimated readings.                                   for customers experiencing financial hardship.

Case Study 2: Waiting and waiting and still
no response
A customer contacted his retailer to have a gas meter
installed at his property. As the customer had been
waiting for over a month to have the meter installed and
was having difficulty in receiving a response from his
retailer, the customer contacted EWOQ for assistance.

Outcome: As part of our investigation we asked the
retailer why the customer had not had his gas meter
installed and if the retailer could confirm that the
necessary work order for the installation of the meter

32                                                                                               ANNUAL REPORT 2011–2012
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