Ergon Energy Queensland Pty Ltd Hardship Policy

Transcription

1 Ergon Energy Queensland Pty Ltd Hardship Policy 1 July 2015

2 Table of Contents Purpose... 1 Policy statement... 1 Hardship program overview... 1 Objectives... 1 Hardship Customer Definition... 2 Eligibility for Customer Assist Program... 2 Participation in Customer Assist Program... 2 Graduation Conditions... 3 Staff training... 3 Implementation... 4 Identifying customer experiencing payment difficulties due to hardship... 4 Early response to hardship... 4 Flexible payment options... 5 Customer case management... 6 Security deposits... 6 Late fees and charges... 6 Government concession programs... 6 Financial counselling services... 7 Programs/Initiatives to assist Hardship Customers... 7 Energy efficiency improvement programs... 7 Complaints management... 8 Contact us... 8 Privacy... 8 References... 8 Definitions... 9 Governance... 9 Continuous improvement /performance audits... 9 Page 1

3 Purpose Ergon Energy Queensland Pty Ltd (Ergon Energy) is committed to providing effective assistance to customers who are experiencing difficulty paying their energy bills in a timely manner and has established the Customer Assist Program for this purpose. Policy statement Hardship program overview The Ergon Energy Customer Assist Program offers a range of services and products to assist vulnerable customers to manage energy usage and payments, through customer case management, flexible payment arrangements as well as community and government partnerships. The aim is to provide a socially responsible program that prevents further financial hardship for the customer whilst being economically sustainable for Ergon Energy. Ergon Energy recognises that customers require access to electricity as an essential service that facilitates the social and economic inclusion of all of our customers. As such, Ergon Energy considers that customer disconnection as a response for outstanding debt recovery is a last resort option and is therefore committed to minimising customer disconnection activity by supporting vulnerable customers who comply with program requirements, to meet their energy usage debts on a sustainable and independent basis. Communication and promotion of the Customer Assist Program is actioned through various channels including marketing brochures, bill messages, Contact Centre scripting, Ergon Energy internet site and community group partnerships and interactions. Objectives The key objectives of the Customer Assist Program are- To facilitate the vulnerable customer s ability to manage their energy usage in an affordable and sustainable way To support customers to close the gap between energy usage and financial capacity by providing energy efficiency education To raise the criticality of the energy bill in customer financial commitment scale To encourage self-help strategies that are based on a shared responsibility model To deal with customers empathetically, respectfully and fairly To provide a low customer effort experience that equips and educates customers to be in a position that prevents the need for future assistance To recognise distinct hardship segments short term, medium term, and long term. To respect the privacy and the personal information of our customers in accordance with the Privacy Act 1988 (Cth) and the Australian Privacy Principles. Page 1

4 Hardship Customer Definition Ergon Energy defines a Hardship customer as a residential customer who has the willingness to pay their energy bills as they fall due but has been either identified or presents as not having the financial capacity to keep to standard payment terms or payment plan terms over a sustained period i.e.at least two consecutive billing cycles. Eligibility for Customer Assist Program Eligibility for the Customer Assist Program will be limited to the current account of residential customers for their primary place of residence. Ergon Energy recognises three time-based hardship segments, and tailors products and services according to the relevant segmentation. During the initial discussion with the customer, an assessment will be undertaken to determine whether the customer s circumstances would be best served by short, medium or long term assistance. Short term assistance will generally be handled at the first point of contact and will usually be in the form of, a payment plan and the forwarding of an application form for the State Government Home Energy Emergency Assistance Scheme. Medium term and long term assistance will be provided via dedicated case management in the form of tailored payment plans, energy audit plans, financial counselling referrals, specialised government subsidy advice, together with ongoing supportive monitoring of usage and payment commitments. Participation in Customer Assist Program Ergon Energy has developed entry criteria, participation responsibilities, exit and graduation conditions for the Customer Assist Program. Entry Criteria includes the assessment of both circumstantial indicators and financial capacity of the customer. Circumstantial Indicators The customer has a current account which is in arrears for their primary place of residence, The customer has the willingness to pay their energy bills by their due date and has been, either identified or presents, as not having the financial capacity to keep to standard payment terms or payment plan terms over a sustained period i.e. at least two consecutive billing cycles, and The customer is experiencing financial difficulties as a result of experiencing life changing events or ongoing embedded disadvantage. Financial Capacity The financial capacity of the customer is measured by the ability of the customer to meet the value of the regular payment to cover the expected future usage plus the amount required to clear outstanding debt within the timeframe of the payment arrangement. Participation Responsibilities Customers are advised of and must agree to their participation responsibilities upon acceptance into the program Page 2

5 To work with Ergon Energy to determine customer capacity to pay and to develop an agreed payment plan To pay the amounts set out in the agreed payment schedule on the due dates To advise Ergon Energy of any change in circumstance that may impact customer ability to make payments To keep Ergon Energy updated with latest phone and contact details To contact Ergon Energy when required to review the Customer Assist package To complete an energy audit of premises as requested To complete a financial assessment audit if required Participate in Government financial assistance schemes Close the gap between energy usage and financial capacity Exit Conditions A customer may be removed from the Customer Assist Program where there is noncompliance with the participation responsibilities as above. (i.e. absence of reasonable attempts to meet responsibilities). The Customer Assist Program officers attempt to contact customers who are at risk of exiting the program via telephone, mail (unable to contact letter) and (if applicable). In the event that none of these channels are successful, a further letter is sent advising of their removal from the program and that the customer will be responsible for managing their own payments and will be subject to the normal debt collection processes. Where a customer has been removed from the program for non-compliance, the customer may still be eligible for a payment plan. Ergon Energy reserves the right to limit reentry to the program where customers have a history of non-compliance with the Customer Assist Program participation responsibilities. Re-entry conditions Where a previously exited Customer Assist Program customer re-applies for participation on the program, the Customer Assist team will assess whether the customer meets the entry criteria and whether the customer has committed to a regular payment method, such as Centrelink or direct debit. Ergon Energy strongly encourages re-entry customers to keep in contact with us to ensure tailored support. Graduation Conditions All actions of the Customer Assist Program will be focused on supporting hardship customers to graduate from the program equipped to understand the high priority of the energy bill and to implement strategies that ensure their energy bills are sustainably affordable. Graduation occurs when a customer has a nil or credit balance and /or is in a position to meet current and future commitments to energy consumption as indicated by payment history. Customers will be advised by a congratulatory letter once they have reached these milestones and encouraged to maintain their focus on matching their usage with their affordable payments. Staff training The Customer Assist team have fully documented procedures supporting the Ergon Energy Queensland Pty Ltd Hardship Policy and participate in a range of training courses covering general hardship awareness, communication and empathy skills, energy efficiency and relevant legislative changes. The team also receive refreshers to assist with their personal resilience. Page 3

6 Implementation Identifying customer experiencing payment difficulties due to hardship Ergon Energy encourages customers who are experiencing financial difficulties to self-identify directly or indirectly via community agencies. Retailer Identification For those customers who do not overtly self-identify, Ergon Energy also uses a number of indicators to identify those customers who display characteristics of a customer experiencing financial difficulties. These indicators include- Customer requests for consecutive payment arrangements History of unpaid bills which may be at the point of imminent disconnection History of dishonoured direct debit payments Cancellation of Centrepay arrangements Requests for Home Energy Emergency Assistance scheme forms Front line staff are also trained to initiate conversations with customers in a way that will raise awareness of our program and offer participation in the program. Any Customer will be provided with a copy of Ergon Energy s Hardship Policy on request and at no charge. Customers identified as hardship customers will be informed of the existence of the Hardship policy as soon as possible after identification as a Hardship customer Customer Self Identification Ergon Energy aims to promote a dialogue with our customers to explore their capacity to pay for their ongoing energy needs. We support this by: Access to our program through calling our Contract Centre or seeking a contact through our address customerassist@ergon.com.au or via our online contact form Ensuring our staff provide an environment that encourages customers to discuss their concerns in a non-judgemental way Ensuring our staff use open ended questions that allow customers the opportunity to share information Conducting empathy training and hardship awareness training for our staff, assisting them to identify the triggers of hardship and how to work with customers experiencing hardship Providing information about our hardship program to customers through multiple communication channels Providing information about our hardship program to external NGOs and government agencies Providing information about our hardship policy to card-operated meter customers Engaging in referrals from a financial counsellor, a community support worker or a member of the community who is assigned by the customer as advocating on their behalf. Early response to hardship Ergon Energy provides early response interventions to customers experiencing hardship. These include Immediate removal from any disconnection or debt recovery actions while the customer participates in the program Page 4

7 Immediate removal from the shortened collection cycle Provision of information about the availability of government-funded rebates, concessions or relief schemes Within 48 hours of hardship customer identification, customer is contacted to discusso Our Hardship policy o A capacity to pay assessment process o Available products and services Flexible payment options When customers are accepted on the Customer Assist Program, their account is quarantined from debt collection activity, including disconnection Ergon Energy offers a number of flexible payment options tailored to the customer s capacity to pay. These include- Payment plans regular instalments, agreed with the customer, and established having regard to the customer s capacity to pay, any arrears owing by the customer and the customer s expected energy consumption needs over the following 12 month period. Incentivised payment plans Ergon Energy may provide an incentive payment (partial or full debt waiver) in specific conditions where the customer has reached the financial position of meeting their energy usage. This incentive payment serves to incentivise customers to maintain their payment plans after graduation from the program. Ergon Energy accepts and facilitates a number of payment methods for which assistance is provided in the setting up. These include Centrepay - CentrePay is a free service for customers who are in receipt of Centrelink benefits and this service allows customers to pay bills as regular deductions from their Centrelink Payments. As part of the Customer Assist program, this service can be arranged over the phone in consultation with the customer. Direct Debit set up through the account or via a customer s financial institution Bpay details provided on the bill Cash or credit card via Australia Post through post office centres and agents Credit card via telephones Cheque or money order from a financial institution- via post A key objective when setting up payment plans or arrangements with customers is to keep the customer connected and committed to working towards long term energy bill management. Ergon Energy takes into account the customer s capacity to pay, outstanding debt, and customer s estimated consumption over the next 12 months. Page 5

8 When assessing the customer s capacity to pay, Ergon Energy encourages conversations that reach realistic and achievable payment amounts that are tailored to be considerate of customer circumstances as well as commercial obligations. In line with privacy requirements, the Customer Assist team will seek an understanding of the current or changed life circumstances relating to health, employment and family to negotiate an affordable payment. Financial counselling information (where available) or community group referral information is also considered in determining a sustainable payment that does not negatively impact the maintenance of a basic standard of living. Customer case management Once the customer has been identified as eligible to participate in the Customer Assist program, the Customer Assist officer will verbally advise the customer of their responsibilities as a program participant and seek their consent to comply with these requirements. The customer is also advised of the range of assistance that will be provided by the program. These details are formally posted to the customer in a Customer Assist Welcome Pack, which includes details of the agreed payment plan or arrangement, Customer Assist brochure (which covers energy usage advice including running costs of all main electrical appliances), applicable information on available rebates and concessions, contact details of Community groups and Financial Counselling services. In this package, customers are advised to contact the Customer Assist officers when their next bill is received to review the adequacy of the payment plan. We also advise customers in this package to contact us if their circumstances change so that the payment plan can be adjusted. On-going reviews are also conducted to enable the customer to re-negotiate their payment plans to accommodate changing circumstances related to employment status, family or health. The reviews may be initiated by Ergon Energy (i.e. scheduled according to milestone, missed payment, higher consumption, account in credit) or by customers themselves. The Customer Assist officers strive to provide support in a respectful manner and stress the importance of the customer contacting them when required. Security deposits A hardship customer will not be required to provide a Security deposit and any previously paid security deposit will be credited against current debt. Late fees and charges Ergon Energy does not charge late payment fees. A waiver of other incurred charges, such as disconnection/reconnection fees, will be considered on a case by case basis. Government concession programs There are a number of Government concession programs that are available to customers experiencing payment difficulties or hardship. Ergon Energy discusses the government assistance programs with customers in the Customer Assist Page 6

9 Program during the initial referral to the program and provides application forms or access details for various programs, as determined applicable to the customer s circumstances. The range of programs is as follows- Queensland Government Electricity Rebate Scheme (Pensioner Rebate) Home Energy Emergency Assistance Scheme Electricity Life Support Concession Scheme Medical Cooling and Heating Electricity Concession Scheme Disaster relief funding grants and Drought relief payments Financial counselling services Ergon Energy has established partnerships with various accredited financial counselling community agencies that offer their services at no cost to Customer Assist customers, including specialised no interest loan scheme referrals. The Customer Assist Program officers facilitate access to these services. Programs/Initiatives to assist Hardship Customers Customers entering the Customer Assist Program are advised of the full range of program products and services that are available to them whilst participating in the program. These include Case management including tailored payment arrangements/plans Energy usage audit service either self-assessment or collaboratively Financial counselling referral, including specialised no interest loan scheme referrals Centrepay set ups Rebate knowledge, assistance and referrals, including access to Government financial concession schemes Community group referrals (local contacts) Protection from disconnection Security deposit waiver or refund; reconnection fee waiver Specialist home energy savings scheme referrals Ergon Energy discusses these products and services with customers in the Customer Assist Program during the initial referral to the program and provides application forms or access details for various programs, as determined applicable to the customer s circumstances Customers are also advised of their responsibilities upon entry to the Customer Assist Program. Customers are expected to comply with these responsibilities and are advised at the point of entry to the program that access to the benefits of the program will be jeopardised in the event of non-compliance. Energy efficiency improvement programs During the initial telephone contact with customers, Customer Assist Program officers help customers understand where energy usage could be reduced and how this would progress customers towards sustainable energy affordability. In the Page 7

10 Customer Assist Program package, energy efficiency brochures are provided, as well as references to Ergon Energy on line audit tools. Where it is considered that energy usage is excessively above average usage for the customer demographic profile, a meter test will be recommended. In these circumstances, a more intensive premise energy audit is offered by a specialist energy advisor through an on line tool as well as a referral to a specialist home energy scheme agency officer. At program milestones, customers will provide self reads to gauge the effectiveness of energy efficiency interventions. Complaints management Ergon Energy manages complaints in accordance with AS/NZS I 10002:2014 Guidelines for complaints handling in organizations and aims to resolve customer complaints at the first point of contact between the Customer Assist Program team and the customer. However, where this has not been achieved, the customer is offered the opportunity to escalate their concerns to our internal escalated complaints team via retailcustomerresponse@ergon.com.au. The external escalation opportunity to Energy and Water Ombudsman Queensland ( ) will be offered to the customer if the matter has not been resolved internally. Contact us For more information about how Ergon Energy can assist with bill payment difficulties please call the Customer Assist team or contact us via customerassist@ergon.com.au. If assistance is required with language or interpretation, please call our Interpreter Service Ergon Energy also provides a National Relay service for TTY/voice calls as well as Speak & Listen services Privacy Ergon Energy is committed to protecting the personal information of our customers in accordance with the Privacy Act 1988 (Cth) and the Australian Privacy Principles. References National Energy Retail Law National Energy Retail Rules National Energy Retail Law (Qld) Regulation 2014 Guidance on AER Approval of Customer Hardship Policies Privacy Act 1988 (Commonwealth) AS/NZS10002:2014 Guidelines for complaints handling in organizations Page 8

11 Definitions All terms defined in body of policy. Governance Under National Energy Retail Law, energy retailers must develop, seek approval of, maintain and implement a customer Hardship Policy. The Customer Assist Program has been developed to support customers experiencing financial hardship in accordance with this Hardship policy and the overarching obligations of Ergon Energy s Retail Regulatory Compliance framework. The Hardship program documentation including this Hardship Policy document is subject to an annual audit to ensure currency and completeness. Continuous improvement /performance audits Ergon Energy monitors the performance of the Customer Assist program and benchmarks its performance against other retailers through the Australian Energy Regulator Hardship Performance Indicators. Page 9