Energy contracts and competition in South East Queensland. Webinar 23 August 2016

Transcription

1 Energy contracts and competition in South East Queensland Webinar 23 August 2016

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3 Session outline 1. Energy market in South East Queensland 2. Price deregulation from 1 July Two types of contracts 4. Criteria to consider when comparing contracts 5. How to find information on your bill 6. Comparison services Energy Made Easy 7. Tips for comparing offers 8. Energy and Water Ombudsman Queensland 9. Q&A

4 Audio Make sure your external speakers are connected and turned on If you have any problems with audio once you have joined the webinar you can listen on your phone by calling Access code #

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6 Energy market in SEQ Electricity: Full retail competition since 2007 Multiple retailers each offering a variety of deals Approx. 17 retailers in the South East Queensland Gas: Only Origin Energy and AGL Energy Less competition in the gas market

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8 Energy market in regional Qld Electricity: One main retailer Ergon Energy Ergon Energy receives a Community Service Obligation (CSO) payment from the Queensland Government to reduce the cost of supply Other retailers do not receive the CSO subsidy so most cannot compete on price Once you leave Ergon Energy, you can t go back

9 Contractual Relationship Customer Retailer

10 Two types of contracts (after 1 July 2016) Standing Offer contract Market contract Proportion of customers on this type of contract? 30% of residential customers in SEQ 70% of residential customers in SEQ How are prices set? Retailers set the prices Retailers set the prices How often do prices change? Prices change on 1 July 2016 and 1 July and then six monthly after that What discounts do I get? No discounts. It is a standard / default contract. How long is the contract for? Open ended contract term. No exit fees allowed. Prices are subject to change anytime (with 10 days advanced notice) Variety of offers which may include: A discount off a base price Conditional discounts where you only get the discount if you meet certain conditions Incentives, credits or rewards May have a fixed contract term. Exit fees may apply (capped at $20). Are there fees if I pay late? No late fees are allowed. Late fees may apply. You may also lose your discount if you pay after the due date.

11 What does it mean for me? Standing offer prices will vary across retailers - if you are on a standing offer it might be worth shopping around Market contract discounts will be off different base prices check what price you will pay Marketing activity may increase

12 Comparing contracts When comparing a contract, you might consider: 1. Price of electricity 2. Fees, terms and conditions 3. Incentives or bonuses offered 4. Customer service or reputation of the company 5. Solar feed-in tariffs (if you have solar)

13 Components of price $700 Estimated quarterly bills across different household sizes $600 $500 $400 $300 $200 $100 $0 Single Person Two person Three person Four person Six person Fixed daily supply charge Doesn t matter how much you use

14 Components of price $700 Estimated quarterly bills across different household sizes $600 $500 $400 $300 $200 $100 Usage charges Varies depending on how much you use. Measured in cents per unit of electricity. Units are called kilowatt hours (kwh). $0 Single Person Two person Three person Four person Six person

15 Charges Excluding GST Including GST General usage charges (depending on how much you use) Main residential usage (called Tariff 11 or peak ) PLUS Controlled Load (CL) tariffs for hot water or pool pumps Economy or Tariff 33 (18 hours per day) Super Economy or Tariff 31 (8 hours per day) PLUS 22.2 cents per kwh 24.5 cents per kwh 18.9 cents per kwh 20.8 cents per kwh 12.4 cents per kwh 13.7 cents per kwh Daily Supply Charge or Service Fee (fixed charge per day) Tariff 11 $1.16 per day $1.28 per day PLUS Tariff 31 or Tariff cents per day 3.1 cents per day Solar panels Standing Offer Prices (prior to 1 July 2016) 7 cents per day All figures are based on the regulated prices set by the Queensland Competition Authority for

16 Standing Offer Prices (after 1 July 2016) Retailer Tariff 11 c/kw * Sanctuary Energy Anytime Home controlled load Supply 1 DoDo Power & Gas Anytime (T11) Controlled Load (T31) Usage Super Eco Tariff 31 c/kwh* Tariff 33 c/kwh* Daily Supply Charge c/day * Home controlled load Supply Controlled Load (T33) Usage Economy Other meter charge c/day * Simply Energy Peak Any Time Controlled Load Controlled Load Lumo Energy Anytime General Supply Controlled Load 1 Dedicated Appliances Controlled Load 2 Dedicated Appliances Origin Energy All Consumption Anytime Night Rate 10pm 7am (Super Economy) Controlled Supply (Economy) PowerDirect Tariff 11 Domestic Peak Tariff 31 Separately metered consumption Tariff 33 Separately metered consumption AGL Tariff 11 Domestic Peak Tariff 31 Separately metered usage Tariff 33 Separately metered usage Energy Australia Peak Anytime Controlled Load Controlled Load Momentum Energy Peak Anytime Controlled Load Controlled Load QEnergy Peak Anytime Controlled Load Controlled Load Click Energy Tariff Tariff Tariff Diamond Energy Urth Energy Single Rate Tariff 11 Domestic (Tariff 11) Anytime Controlled Load 1 -Tariff Controlled Load 1 -Tariff Tariff 31 Usage Tariff 33 Usage *All prices shown include GST Prices shown as at 22/08/16 Source:

17 Standing Offer Prices (after 1 July 2016) Retailer Tariff 11 c/kw * Sanctuary Energy Anytime Home controlled load Supply 1 DoDo Power & Gas Anytime (T11) Controlled Load (T31) Usage Super Eco Tariff 31 c/kwh* Tariff 33 c/kwh* Daily Supply Charge c/day * Home controlled load Supply Controlled Load (T33) Usage Economy Other meter charge c/day * Simply Energy Peak Any Time Controlled Load Controlled Load Lumo Energy Anytime General Supply Controlled Load 1 Dedicated Appliances Controlled Load 2 Dedicated Appliances Origin Energy All Consumption Anytime Night Rate 10pm 7am (Super Economy) Controlled Supply (Economy) PowerDirect Tariff 11 Domestic Peak Tariff 31 Separately metered consumption Tariff 33 Separately metered consumption AGL Tariff 11 Domestic Peak Tariff 31 Separately metered usage Tariff 33 Separately metered usage Energy Australia Peak Anytime Controlled Load Controlled Load Momentum Energy Peak Anytime Controlled Load Controlled Load QEnergy Peak Anytime Controlled Load Controlled Load Click Energy Tariff Tariff Tariff Diamond Energy Urth Energy Single Rate Tariff 11 Domestic (Tariff 11) Anytime Controlled Load 1 -Tariff Controlled Load 1 -Tariff Tariff 31 Usage Tariff 33 Usage *All prices shown include GST Prices shown as at 22/08/16 Source:

18 Standing Offer Prices (after 1 July 2016) Retailer Tariff 11 c/kw * Sanctuary Energy Anytime Home controlled load Supply 1 DoDo Power & Gas Anytime (T11) Controlled Load (T31) Usage Super Eco Tariff 31 c/kwh* Tariff 33 c/kwh* Daily Supply Charge c/day * Home controlled load Supply Controlled Load (T33) Usage Economy Other meter charge c/day * Simply Energy Peak Any Time Controlled Load Controlled Load Lumo Energy Anytime General Supply Controlled Load 1 Dedicated Appliances Controlled Load 2 Dedicated Appliances Origin Energy All Consumption Anytime Night Rate 10pm 7am (Super Economy) Controlled Supply (Economy) PowerDirect Tariff 11 Domestic Peak Tariff 31 Separately metered consumption Tariff 33 Separately metered consumption AGL Tariff 11 Domestic Peak Tariff 31 Separately metered usage Tariff 33 Separately metered usage Energy Australia Peak Anytime Controlled Load Controlled Load Momentum Energy Peak Anytime Controlled Load Controlled Load QEnergy Peak Anytime Controlled Load Controlled Load Click Energy Tariff Tariff Tariff Diamond Energy Urth Energy Single Rate Tariff 11 Domestic (Tariff 11) Anytime Controlled Load 1 -Tariff Controlled Load 1 -Tariff Tariff 31 Usage Tariff 33 Usage *All prices shown include GST Prices shown as at 22/08/16 Source:

19 Comparison services A range of commercial services compare energy offers. However they may: Not compare all offers or all retailers Not be up to date with the latest offers Not list the best or cheapest offer at the top Receive commissions from retailers or charge a fee to sign you up May require a phone number or to follow up with you

20 Energy Made Easy Free and independent comparison service Retailers are obligated to submit all their offers Not a switching site information only Includes lots of useful information and resources Phone: (between 8am and 6pm weekdays)

21 Finding this information on your bill Bill period

22 Electricity charges

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24 Demonstration

25 Top tips Do you have existing debt? Contact your existing retailer to arrange a payment plan. Call your existing retailer and ask them to offer you a better deal. Always ask if there are conditions attached to the discount. Been with your retailer for a while? The price is likely to have changed and there may be new plans available. It can be worth checking again.

26 Discount off what? A higher discount is not always a cheaper offer it depends what the discount is off Mostly discounts are off the regulated prices, but not always Some contracts offer a discount off the total bill, including the fixed supply charge. Others offer a discount off the usage component of the bill only. If you have a controlled load tariff, check whether the discount applies to this cost too. Some discounts are for a short period only (called a Fixed Benefit Period or Honeymoon Period ), then you default to a higher price.

27 Ask your retailer Is the discount off the total bill? If not, what charges does the discount apply to? How long does the discount apply for? What happens after the discount period ends?

28 Discounts with conditions Many offers will only give you a discount if you meet certain conditions, such as: If you pay your bills on time, every time If you set up a direct debit transfer to pay your bills If you agree to receive online bills (no paper) If you agree to monthly billing (instead of quarterly) If you sign up for both electricity and gas

29 Ask your retailer Are there conditions attached to the discount? How much extra will I pay if I don t meet those conditions? If I can t meet those conditions, what else can you offer me?

30 Fees, terms and conditions Fees, terms and conditions can vary. Contracts vary in length and may include an exit fee (capped at $20) Prices may change during the contract period. Late fees may apply if you don t pay on time. Credit card transaction fees - percentage of bill Account establishment fees Online billing and customer service

31 Ask your retailer How long is the contract period and is there an exit fee? How much extra will I be charged if I don t pay my bill on time? Can the prices change during the contract period? How will you notify me? How and when will I receive my bill?

32 Incentives or bonuses One-off sign-up credits or bonuses Reward programs or points Subscriptions Am I paying higher electricity prices in exchange for these incentives? If so, is it worth it for me?

33 Service and reputation Can you get the information you need over the phone or online? What is their hardship program like? How easy is it to get onto the hardship program? What do they offer as part of their hardship program? Case management Energy audits Payment matching Partnerships with local community services

34 Service and reputation Check online google the company Word of mouth ask friends, family, colleagues Can you get in touch with them over the phone? Have you had experience with their hardship program?

35 If you have solar Retailers offer different feed-in tariff payments for the solar electricity you generate. Your feed-in tariff rate can vary depending on your contract. Energy Made Easy can tell you the feed-in tariff rates for each offer If you signed up to the Solar Bonus Scheme prior to 2012, you may be earning an additional 44 cents per kwh. You can still switch if you are receiving the 44 cent payment it will transfer to your new retailer. If you purchased your panels from your retailer under a finance arrangement, you may need to pay them off before you can switch. Check with your retailer.

36 Marketing conduct Retailers must: Clearly and fully disclose all the terms and conditions of the offer Obtain explicit informed consent before they can sign you up for a contract Provide a 10 business days cooling off period (without penalty) Maintain a no contact list if you prefer salespeople not to contact you Comply with Australian Consumer Law in regards to advertising and marketing

37 Energy and Water Ombudsman Queensland Free, fair and independent

38 Problem with your energy or water supplier? Free, fair and independent dispute resolution service. Help resolve complaints with energy suppliers across Queensland or water suppliers in south east Queensland

39 Types of marketing complaints Energy retailer not abiding by customer request to cancel contract within cooling off period Retailer not abiding by contract requirements eg cost of late payment fee Marketers not disclosing appropriate information when discussing contract Customers wrongly transferred to another retailer/delays in transfer Customers feeling pressured into agreeing to contract Customers receiving multiple bills from retailers for same period

40 Tips to deal with potential energy offers Ensure you are happy with the terms & conditions of the offer Some offers may require you use a certain amount of energy check if this is right for you Shop around to find an offer that best suits your needs Marketers must provide information such as start date & duration of contract; all applicable prices and term of fixed prices; early termination penalties; concessions; payment arrangements (eg monthly accounts); late payment fees

41 Tips to deal with potential energy offers Door to door marketers must leave when asked & not return for up to 30 days No contact list applies to door to door marketers & marketing by mail No canvassing/advertising signs door to door marketers must comply with these signs Do Not Call Register customers can register for this Have 10 business day cooling off period to cancel energy contract

42 Do Not Contact Customers who do not wish to receive telemarketing calls can sign up to the Australian Government s Do Not Call Register on or visit You can also get a free Do Not Knock sticker from

43 How to make a complaint Phone complaints@ewoq.com.au Visit us in Brisbane, Cairns or Rockhampton

44 Energy and Water Ombudsman Qld Free and independent umpire to resolve complaints Contact after you have tried to resolve the problem with the retailer Can help if retailer has not met their obligations under the law Retailers pay EWOQ for the time taken to resolve complaints made against them Complaints are used to identify problems in the market for customers Can take complaints about marketing conduct or problems with switching Call or lodge complaint online at

45 Resources available Campaign launched by Queensland Government Website: Animated video:

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47 Factsheet

48 More information You will receive an from us with: A copy of these slides Links to relevant information online Link to an online survey to give us feedback on this webinar

49 Questions? Please type your questions into the chat window and we will answer them now Or questions to:

50 The End