Discussion Paper Summary

28 March 2000

Submission to the Ministerial Inquiry into the Electricity Industry

Supplementary submission

This submission is made in response to the request for public submissions by the Ministerial Inquiry into the Electricity Industry (the Inquiry).

It does not seek to address all of the questions posed in the Inquiry Issues Paper. It is the Inquiry itself that will have access to all of the relevant information and submissions that are required to address fully the terms of reference it has been provided with.

However, the Ministry of Consumer Affairs (the Ministry) has developed benchmarks that are relevant to ensuring that consumers’ interests are met and provides comment on the need for improvement to consumer information, consumer representation and the development of a consumer voice in the electricity industry. It is the Ministry’s view that if the Inquiry’s recommendations to Government ensure that the benchmarks are met and the improvements made, then consumers’ interests will be met.

This will in turn support the Government to meet its objective of ensuring that electricity is delivered in an efficient, reliable, and environmentally sustainable manner to all classes of consumer.

The benchmarks cover access, price, contracts, quality and liability, meters/measurement, billing, bonds, privacy of personal information, disconnection, safety and dispute resolution.

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Supplementary submission to the Ministerial inquiry into the electricity industry

The information contained in this submission was gathered from two main sources:

1. Responses received through the Ministry of Consumer Affairs Powerline. This 0800 number operated from 28 February to 10 March. Through the Powerline consumers contacted the Ministry directly to share their experiences with their electricity supply companies. Fax, email, and postal information were also encouraged during this time. For more information on the Powerline see appendix 1.
2. File information from the Ministry of Consumer Affairs. Information received since April 1 1999 includes:
   • calls received by the Ministry from its community agencies hotline number (this is a number provided to community agencies - eg community law centres, budget advisors, citizens, advice bureaux - to get assistance to answer difficult consumer queries from their clients)
   • correspondence received by the Ministry direct from consumers
   • correspondence received by the Ministers of Consumer Affairs from 1 April 99. The information is based on 1,830 responses from consumers.
3. To summarise the consumer concerns communicated to the Ministry, consumers would generally be happier with their relationship with the electricity industry if:
   • they were able to access an electricity supply at a fair and reasonable price
   • they were sent regular monthly bills that accurately showed and charged them for the amount of electricity they used, and the information was presented in a way they could understand
   • they had a question or a complaint and were able to contact their retailers easily
   • they were treated with respect, and their complaint was taken seriously and acted upon
   • they could change easily and quickly between retailers
   • they had access to information that allowed them to make a clear choice between suppliers
   • the interests and concerns of their communities were taken into account in the policies and business decisions of the electricity companies who supply those communities
   • their contractual rights and responsibilities were clearly set out and they had a chance to have a say when those terms are changed (including and especially terms about the way they pay for their electricity)
   • their suppliers handled disputes in a fair way
   • the supply was of an acceptable and safe standard, and they were able to claim compensation where they suffer loss through a suppliers fault
   • their meters were read regularly and they could be sure that their meters were reliable and that someone was clearly responsible for making sure of this
   • disconnection was only ever done legitimately and fairly, including making allowances where consumers are unable to pay the full amount owing because of genuine hardship.

Discussion Paper - full text

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