safeguarding consumer outcomes · damien moyse policy & research manager. why have energy...
TRANSCRIPT
Safeguarding Consumer OutcomesConsumer Protections, Codes of Conduct & New Energy Tech
Damien MoysePolicy & Research Manager
Why have Energy Consumer Protections?
• Energy-specific protections exist, in addition to ACL, because energy is a:- Non-Substitutable, Essential Service
• Part of the National Energy Customer Framework
What are Energy Consumer Protections?
Minimum requirements re:• Consumer information• Price disclosure• Billing• Payment methods• Hardship• Safety, security, reliability• Compensation for breaches
How are they delivered?
• Consumer Protection Obligations placed on the Electricity Retailer
What’s happening in the Energy World?
What’s happening in the Energy World?
• Households/businesses may have higher reliance on their own Energy Supply
The Problem
Consumer protections are predicated on sale of energy
Transactions outside not captured by the National Energy Consumer Framework (NECF)
But solar PV, batteries are discretionaryproducts… not essential energy supply….
• Yes, but…
• increasingly mainstream products
• give greater control/energy affordability
• like cars: are expensive, assumed to fulfil critical roles as expected, and optional but becoming ubiquitous
• possible to be 80-90% “off-grid” now with your own solar-battery system
Impetus behind the CEC Solar Retailer Code…
• Minimum Warranty Levels• Sales & Marketing Practices• Checks on Director/Company History• System performance guarantees• Approved by ACCC• Solar only, recently batteries….
Back in 2016…
COAG Energy Council consulted on protections for behind-the-meter products & services
Buyer beware?
More regulation?!?
Redefine the scope of NECF?!?
A voluntary industry code of
conduct!
2017
✓ Initial draft
✓General consultation
✓Technical consultation
✓ Final draft
✓ACCC review
✓ Final version
ACCC authorisation
The New Energy Tech Code
Enhancing/replacing the CEC Solar Retailer Code
Broader in scope
Tech-neutral
Expected to go live early in 2020.
Code Principles
Marketing practices
Dispute resolution
Explicit informed consent
Fit-for-purpose
Finance WarrantiesPrivacy and
data collectionCompliance and
enforcement
New Energy Tech Code aims to fulfil two roles:• Clarify the application of ACL
• Provide additional protections as necessary
Clarifying ACL Application (e.g.)
ACL (paraphrased)
SECTION 55: goods must be reasonably fit for any purpose disclosed by the consumer or represented by the supplier.
SECTION 61: services will be reasonably fit for purpose. In cases where the consumer discloses they want services for a specified purpose, or to achieve a particular result, the business guarantees the services will be fit for the specified purpose.
New Energy Tech CodeSignatories agree to:
• Ask about specific circumstances, needs and expectations.
• Ensure product/service is fit for purpose (or explain that it isn’t).
• Document in quotes and contracts.
• Verify (and document) whether product/ service will work with existing products already installed, as relevant.
PROVISION: Products & Services are Fit for Purpose
Principles to Requirements (e.g.)
Solar panelsAnnual generation estimate considering:
• location
• shading/orientation
• DNSP restrictions
Bill savings/RoI based on:
• generation estimate
• actual/typical electricity tariff
• actual consumption pattern
Household batteriesAnnual storage/usability estimate considering:
• battery capacity
• surplus solar generation
• energy usage outside solar gen hours
Bill savings/RoI based on:
• storage/usability estimate
• actual/typical electricity tariff
• foregone feed-in tariff
• degradation over time
PRINCIPLE: Representations of performance & value of a product/service must use reasonable assumptions and consider site-specific factors
Benefits
Ensure customer is considered• Customer often overlooked in
planning/delivering innovative tech
Minimise adverse outcomes• Social license can be compromised if
there are poor customer outcomes
Stand out in the market• Differentiate from those businesses
who are unaccredited
Consumer confidence• Good customer protections build
consumer confidence
Compliance and enforcement• Poor compliance and enforcement
undermines the value of a Code
Coverage• Low coverage compromises
consumer & industry outcomes:
• Too many unaccredited businesses behaving poorly entrenches poor outcomes
• Low membership limits economies of scale that make membership affordable
Risks
