EWOSA News - November 2024

A very important announcement is that EWOSA has become an official supporter of the Energy Charter!

EWOSA believes an affordable and equitable clean energy future is vital for consumers and communities for generations to come. That is why we have become a formal supporter of the Energy Charter and its efforts to place customers at the centre of the energy transition, through its work with many organisations across the energy supply chain – including major energy companies, as well as consumer groups – to deliver better energy outcomes for customers and communities.

You can read more about the Energy Charter on their website https://www.theenergycharter.com.au

We released our Annual Report in October. This highlighted some of the main trends in complaints and in the operations of EWOSA in 2023-24. You can find the Annual Report here https://ewosa.com.au/publications/annual-reports

So far this financial year, the number of cases received by EWOSA has continued to rise. In the September quarter 2024, we received 3050 cases, 2080 of which were complaints. In terms of complaints, there was an increase of 3% compared to the same quarter last year and a much larger 18% rise compared to the June quarter 2024.

There was a peak of over 1100 cases received in August and almost a further thousand in September.

Billing issues are a major driver of complaints received by our office. We received 1420 billing complaints in the September quarter 2024, around 68% of total complaints. Almost half of these were related to high bills.

With energy prices still high and cost of living pressures continuing, it is important to shop around for a better deal and reduce your energy bills. Please see our Customer Corner on what to do and what sorts of savings can be made.

As well as high bills, estimated bills are a cause for concern for some customers. There were almost 250 estimated bills complaints in the September quarter 2024, around 15% of total billing complaints.

Estimated bills can result from meter readers being unable to access the meter, for basic meters, perhaps because of a locked gate or a dog on the premise. There is also sometimes human error when recording the meter reading. For smart meters, if the communications function is either switched off or does not work for a short time, it may be necessary for retailers to provide a bill with an estimated meter read. Meters can also be faulty, but this isn’t common.

You can learn more about high bills, estimated bills and many other energy and water issues that customers face in Fact Sheets on our website https://ewosa.com.au/consumer-resources/fact-sheets

We are here to help if you are unable to resolve a matter with your provider or need some information. Please contact us on 1800 665 565 or via our website if you need assistance.

Sandy Canale

Energy and Water Ombudsman SA

The South Australian Department for Energy and Mining released a Consultation Paper in September on a Small Compensation Claims Scheme.

The Small Compensation Claims Scheme is proposed to enable households and small businesses to file small claims for compensation from the electricity distributor for property damage due to electrical infrastructure equipment failure.

Some of the key points of the Scheme are:

• claims of up to $15,000 can be made
• claims can only be made where equipment failure causes a voltage variation that results in property damage, such as to electrical appliances, as well as food spoilage
• claims must be supported by evidence
• compensation will be made on a like-for-like basis
• claims are retrospective to 1 July 2022
• SA Power Networks will administer the Scheme.

EWOSA provided a submission on the Consultation Paper in October, supporting the introduction of a Small Compensation Claims Regime.

You can read the Consultation Paper and learn more about the proposed Scheme on the Department of Energy and Mining website https://www.energymining.sa.gov.au/public-consultations/current-consultations

The Australian Energy Market Commission (AEMC) released a Directions Paper on the Accelerating Smart Meter Rollout rule change process in August.

The Directions Paper sought feedback on two additional proposed customer protections:

• customers must give their explicit informed consent for any changes to retail tariffs, for three years after a smart meter deployment
• designated retailers would be required to offer all customers for which they are the designated retailer a flat tariff offer. This would be implemented by jurisdictions.

EWOSA provided a joint submission with interstate Energy and Water Ombudsman on the Directions Paper in September, supporting the proposals. These would reduce the likelihood of “bill shock” for people who are unable to change their electricity consumption patterns.

The final rule change is expected to be released on 28 November.

You can read more about the smart meter rollout rule change at https://www.aemc.gov.au/rule-changes/accelerating-smart-meter-deployment

The AEMC has commenced a Review into “Electricity Pricing for a Consumer Driven Future”.

The Review’s key areas of focus are:

• market arrangements that provide for consumer choice between a range of appropriate products, services, and associated prices that suit their needs and preferences
• the role of distribution networks in enabling the right products, services, and incentives for consumers, and the efficient cost and pricing outcomes that result
• the role of retailers and energy service providers in effectively packaging and pricing electricity products and services to match consumer preferences.

The AEMC released a Consultation Paper on 7 November and feedback on this can be provided until 12 December.

You can read the Consultation Paper and find out more about the Review at https://www.aemc.gov.au/market-reviews-advice/electricity-pricing-consumer-driven-future

The Issue

Ms M received a gas bill that was higher than expected. They advised that they use minimal gas as they only have a shower and a stove.

A previous complaint had been raised with the provider. This was resolved when it was confirmed that a gas leak had been found.

The provider advised that the property had been attended and there were no faults found with the current metering system.

Our Review

During our Investigation, the property was visited and the meter was removed for testing offsite. The testing found that the meter was operating within acceptable limits and no leaks were found.

Discussions with Ms M about the complaint revealed that the issue was related to mixer taps within the property and this was causing unexpected gas usage.

Resolution

Our Investigation found that the meter had accurately recorded the gas usage at the property. We found that the bills were issued correctly and were based on the consumption recorded by the meter.

The provider assisted Ms M by offering a payment plan.

The Issue

Mr P discovered that their electricity meter was faulty and the correct adjustment had not been made on their bill. The provider had applied a credit for the meter recording fast by 25.59%, after the meter had been removed from the property for testing.

The meter test that was conducted found that the meter was recording fast by 125.59%. This was confirmed by the distributor.

Our Review

Our Investigation revealed that the electricity meter was indeed recording fast by 125.59% and further adjustments to the amount due on the bill were necessary.

Although the provider had received the corrected meter data, the initial revised bill did not contain the right correction.

Resolution

Our Investigation confirmed the above findings.

The electricity meter data was amended back to 2020 and this correction was sent to the provider. The provider corrected the billing resulting in a billing adjustment of $15,442 in Mr P’s favour.

While the Australian Energy Regulator (AER) released the Default Market Offer electricity price in June 2024, indicating a fall in prices of between 1% and 2.2% for residential customers in 2024-25, energy prices are still high.

The Essential Services Commission of South Australia (the Commission) released their annual “Energy Retail Price Offers Comparison Report 2023-24” at the end of August. This found that:

• average residential annual electricity retail Standing Offer and Market Offer prices increased by 20.4% and 18.6% respectively over the 12 months to 30 June 2024
• average residential annual gas retail Standing Offer and Market Offer prices increased by 7% and 11.1% respectively over the 12 months to 30 June 2024.

With high energy prices and other cost of living pressures, you may be finding it hard to make ends meet and shopping around for a better energy deal is one way you might be able to find savings.

So, it is important that you check the advice on the front page of your energy bill(s) about whether your retailer has a better offer for you. If they do, you should contact your retailer to change offers. Their telephone number will be on the front page of the bill.

Savings can be made by shopping around and either switching between retailers or going onto a better offer from your existing retailer.

According to the Commission’s report, most retailers (but not all) had Market Offers available priced at a discount to its Standing Offer prices in 2023-24:

• for residential electricity customers, where discounts were available, the discount between a retailer’s Standing Offer and its average Market Offer ranged from 2% to 12%
• for residential gas customers, where discounts were available, the discount between a retailer’s Standing Offer and its average Market Offer ranged from 2% to 26%.

To compare your current offer and the possibly better offer from your current retailer with offers from other retailers, visit the Energy Made Easy website at https://www.energymadeeasy.gov.au/ or call the AER on 1300 585 165.

You can read the Commission’s report about energy retail price offers, including retailer solar feed-in tariffs, at https://www.escosa.sa.gov.au/news/energy-news/aug24-news-2024-en-rpcr2023-24

The number of complaints per 10,000 customers for each supplier is calculated by dividing the number of complaints received during the quarter by the total number of customers for each supplier, multiplied by 10,000. Large Suppliers are those with over 100,000 customers, Medium-sized Suppliers have between 10,000 and 100,000 customers, Small Suppliers have between 1,000 and 10,000 customers and Very Small Suppliers have less than 1,000 customers. The total number of complaints is also presented for context.