ombudsman queensland. annual report

CONTRIBUTING TO ANEFFICIENT AND FAIR

ENERGY AND WATER SECTOR

ENERGY AND WATEROMBUDSMAN QUEENSLAND.

ANNUALREPORT2012-2013

AVAILABILITYOnline

The 2012-13 annual report is available online, visithttp://www.EWOQ.com.au/Publicationsmedia/AnnualReports.aspx

Printed copies

For a printed copy of the annual report, or for more information, contact:

Senior Communications and Marketing Offi cerEnergy and Water Ombudsman QueenslandPO Box 3640SOUTH BRISBANE QLD 4101

Phone: 1800 662 837Email: [email protected]

Interpreter service

EWOQ is committed to providing accessible services to Queenslanders from all culturallyand linguistically diverse backgrounds. If you have diffi culty understanding the annual report,you can contact us on 1800 662 837 and we will arrange an interpreter for you, free of charge.

ISSN: 1839-308X

© Energy and Water Ombudsman Queensland 2013

1

Compliance letter 2

Highlights of 2012-13 3

Energy and Water Ombudsman’s message 4

Advisory Council Chair’s message 6

Advisory Council to the Energy and Water Ombudsman 7

EWOQ priorities 8

Our customers and their issues 9

• Electricity 13 • Gas 27 • Water 33 • Systemic issues 40

Scheme performance 42

• Our performance 42 • Scheme participant performance 47

Promoting the scheme 51

Our organisation 53

Financial statements 57

Appendix 1: Glossary 89

Appendix 2: Tables and graphs index 90

Appendix 3: Scheme participants 91

Appendix 4: Compliance checklist 92

CONTENTS

2

COMPLIANCELETTER

The Honourable Mark McArdle MPMinister for Energy and Water SupplyPO Box 15216CITY EAST QLD 4002

3 September 2013

Dear Minister

I am pleased to present the 2012-13 annual report and fi nancial statementsfor Energy and Water Ombudsman Queensland.

I certify that this annual report complies with:

• the prescribed requirements of the Financial Accountability Act 2009and the Financial and Performance Management Standard 2009

• the detailed requirements set out in the Annual report requirementsfor Queensland Government agencies.

A checklist outlining the annual reporting requirements can be foundat page 92 of the annual report or accessed atwww.EWOQ.com.au/Publicationsmedia/AnnualReports.aspx.

Yours sincerely

Forbes SmithEnergy and Water Ombudsman

3

HIGHLIGHTSOF 2012-13

IN OUTCOMES FOR CUSTOMERS$902,059

SMALL BUSINESSCOMPLAINTS ARE UP 35%

TOP THREE ENERGY COMPLAINTSARE BILLING, CREDIT AND TRANSFER

TOP THREE WATER COMPLAINTS AREBILLING, CREDIT AND CUSTOMER SERVICE

14,096 EWOQ CLOSEDA RECORD

12,107 ELECTRICITYCASES

1,132 GASCASES

614 WATERCASES

CASES

4

ENERGY AND WATEROMBUDSMAN’S MESSAGEIt is hard to imagine that there has been a more volatile year in the energy sector since the commencement of full retail competition in 2007. The State Government’s extensive reform agenda, and the recently announced increase in the regulated retail electricity price, has meant thatthe cost of electricity to consumers was rarely out of the news.

The water sector has also undergone signifi cant change, including responsibility for water services in Logan, Redland and the Gold Coast being returned to their respective local councils.

The volatility in the water and energy markets has not translated into signifi cant increases in complaints to my offi ce. In the fi nancial year under report, my offi ce, the Energy and Water Ombudsman Queensland (EWOQ) experienceda modest six per cent increase in cases received.

However, we did experience a large increase in the number of cases which were out of jurisdiction and needed to be referred to other agencies, particularly the Department of Energy and Water Supply, and the Offi ce of Fair Trading. These cases doubled and were largely about solar power and bulk hot water.

While it is pleasing that consumers are increasingly turning to my offi ce for assistance, confusion over which agency is the right one for them only adds to their concerns. In addition, the resources of my offi ce are drawn away from our core business.

The increase in referral cases, as we label them, was a major reason behind the development ofa web-based complaints portal which was launched in time for the start of the 2013-14 fi nancial year.The portal will help customers navigate their way to the correct agency to lodge their complaints.For a number of agencies, including EWOQ, customers can also lodge their complaint online through the portal. Further information about the portal and the agencies involved can be found in this report.

As for the complaints which were in jurisdiction,the cases were again dominated by issues about electricity bills: incorrect bills, high bills, and bill delays were common issues for customers.

In 2012-13, we secured 10,621 outcomes for more than 9,100 customers. An outcome can include debt or fee waiver, billing adjustment, credit default listing amended, goodwill gesture, payment planor hardship program offered, reimbursement,or information provided by a scheme participantor EWOQ. Over $902,059 was delivered in monetary outcomes for customers, up from $712,000 last fi nancial year.

5

Complaints about high bills sometimes disguise the real reason for calling EWOQ — the customer simply cannot afford to pay their bill. We continued to assist many customers in negotiating payment plans and accessing hardship programs this year. Credit cases, which concern customers who are experiencing diffi culties paying their bill, were, once again, the second highest category of complaint this year.

Growing concerns about the capacity of customers to pay their energy bills led to a National Energy Affordability Roundtable being conducted in Sydney in April 2013. The Australian Energy Ombudsmen, the Energy Retailers Association of Australia, and the Australian Council of Social Service presented the National Energy Affordability Roundtable Report to the Standing Council on Energy and Resources (SCER). The SCER is chaired by the Commonwealth and is comprised of energy and resources Ministers from the states, territories and New Zealand. The report contains a comprehensive set of recommendations for action to address the affordability challenges faced by energy consumers around the country.

Throughout these uncertain times I have very muchappreciated the advice of Advisory Council memberswhose collective industry and consumer experiencehelps keep me up-to-date with, and understand, this complex industry.

Of course EWOQ could not run effectively without the dedication and commitment of our Brisbane, Rockhampton and Cairns staff. Their efforts are refl ected in the results of a customer satisfaction survey we conducted in 2013 which found that92 per cent of customers would recommend EWOQ to a friend if they had an energy or water complaint they could not resolve.

I expect that the next 12 months will be noless busy for the offi ce. However, I am confi dentthat we are well placed to continue providing a free, fair, effective and independent dispute resolution service for Queensland’s energyand water customers.

Forbes SmithEnergy and Water OmbudsmanForbes Smith

6

ADVISORY COUNCIL CHAIR’S MESSAGEThe functions of the Advisory Council to the Energy and Water Ombudsman include monitoring the Ombudsman’s independence, and advisingon policy and procedural issues relating to theEnergy and Water Ombudsman Act 2006 (the Act),guidelines and budgets. During the year the Council addressed matters of independence, jurisdiction, identifi cation and handling of systemic issues, dispute resolution processes, reporting, and fi nancial hardship.

The main purpose of the Act is to give customers a timely, effective, independent and just way of referring disputes and having them investigated and resolved. To assess the extent to which EWOQ is achieving that, the Council is in the processof commissioning an independent party to reviewEWOQ’s operations according to national benchmarks.On completion, the review will be published on the website, following the last review in 2010.

Council members met with the Minister for Energy and Water Supply, Mark McArdle, when he attended the offi cial opening of EWOQ’s new premises in May. The Council appreciated the opportunity to discuss with the Minister issues facing the industry and consumers.

This year the Council farewelled Roz Burtenshaw (Queensland Country Women’s Association), Margaret Campbell-Ryder (United Retail Federation),David Mathers (Unitywater), and Josephine Monger (AGL Limited). We welcomed Judy Bailey (Unitywater), Harry Bonning (AGL Limited), Michael Gordon (Family Business Australia [Queensland]), and Alison Mobbs (Queensland Rural, Regionaland Remote Women’s Network).

I am grateful to the Ombudsman, Forbes Smith,for his open and transparent approach to the workof the Council and for the good working relationshipthat exists between him and the Council.

I extend my thanks to Council members for their collective goodwill, expertise and readiness to contribute to the work of EWOQ. They provide valuable insights which would not otherwise beas readily available to the Ombudsman.

After six years of operation, EWOQ continuesto deliver a valuable service to Queenslanders.

Julie-Anne SchaferChair

7

ADVISORY COUNCILTO THE ENERGY ANDWATER OMBUDSMANAdvisory Council to the Energy and Water Ombudsman

The Advisory Council to the Energy and Water Ombudsman provides expert advice to the Energy and Water Ombudsman and the Minister responsible for energy and water on the effective and effi cient conduct and operation of the EWOQ scheme. This helps to ensure the scheme is administered in a manner which is fair and just to consumers and suppliers.The Advisory Council:

• monitors the Energy and Water Ombudsman’s independence

• advises the Energy and Water Ombudsman on policy, procedural and operational issues relating to the Energy and Water Ombudsman Act 2006

• advises the Minister responsible for energy and water on the funding of the Energy and Water Ombudsman’s functions

• at the end of the fi nancial year, advises the Minister on the Energy and Water Ombudsman’s independence and functionsof the offi ce during the fi nancial year.

The Advisory Council generally meets everytwo months and consists of an independent chair and at least six other members appointed bythe Minister. The other members must consistof members drawn from scheme participantswho represent the interests of scheme participants (industry members); and an equal numberof members drawn from groups who represent the interests of consumers. Members must be appointed on the Chair’s recommendation, after consultation with scheme participants, consumer groups and community welfare organisations.

At least two of the industry members must represent the interests of retailers and at leastone represent the interests of distributors.A minimum of one industry member must represent the interests of scheme participantsthat are water entities.

2012-13 Members

ChairJulie-Anne Schafer

Industry representatives:

• Tanya Acheson, Ergon Energy

• Judy Bailey, Unitywater (from 9 May 2013)

• Harry Bonning, AGL Limited (from 9 May 2013)

• Kate Farrar, Qenergy Limited

• David Mathers, Unitywater(until 31 December 2012)

• Josephine Monger, AGL Limited(until 31 December 2012)

• Michael Swanston, ENERGEX.

Consumer representatives:

• Roz Burtenshaw, Queensland Country Women’s Association (until 31 December 2012)

• Margaret Campbell-Ryder, United Retail Federation (until 31 July 2012)

• Michael Gordon, Family Business Australia (Queensland) (from 1 August 2012)

• Ian Jarratt, Queensland Consumers’ Association

• Alison Mobbs, Queensland Rural, Regional and Remote Women’s Network (from 9 May 2013)

• Linda Parmenter, Queensland Councilof Social Service

• Mark Tucker-Evans, Council of theAgeing Queensland.

8

Our vision

A high performing, independent organisation making a valued contribution to an effi cient and fair energy and water sector.

Our mission

To provide the people of Queensland with a timely, effective, independent and just way of resolving disputes with their energy and water supplier.

Our purpose

EWOQ receives, investigates and resolves disputes between Queensland’s small energy customers, small water customers in south east Queensland and the energy and water retailers and distributors.

EWOQ also identifi es, and reports, systemic issues arising from complaints received from customers.

EWOQ achieves this through a process which is free, fair, accessible, accountable, effective and effi cient. EWOQ takes into account the rights and responsibilities of customers and scheme participants under relevant legislation, codes and standards when resolving disputes.

Our strategic direction

EWOQ contributes to the Queensland Government’s objective of Getting Queensland back on track through the provision of a free,fair and independent and impartial dispute resolution service.

Our main strategic objectives are to:

• contribute to improved service deliveryin the energy and water sector

• foster a culture of continually strivingfor success

• adhere to the principles of independenceand accountability in all we do

• provide all Queenslanders with equal accessto our service.

The risks to meeting our objectives include:

• loss of confi dence in EWOQ’s effectiveness by the government, scheme participants, residents and small business owners

• legislative changes in the energyand water sectors adversely affectingour operational capacity

• signifi cant increases in complaints to our offi ce

• attraction and retention of qualifi ed staff.

This year we focused on the followingkey priorities:

• achieving best practice, fairness and confi dence in the resolution of disputes between scheme participants and small customers (pages 42-46 provide information on how we achieved this in 2012-13)

• raising awareness and proactively promoting our services to small energy and water customers, with an emphasis on Aboriginal people, Torres Strait Islanders, multicultural groups and the aged (see page 51)

• investigating, reporting and providing feedback on systemic issues (see page 40)

• implementing a training and development program for staff (see page 56).

EWOQPRIORITIES

9

This year, EWOQ received 14,266 cases, up six per cent on last year, and closed 14,096 cases,a four per cent increase on 2011-12. The closed cases include:

• 12,107 electricity cases

• 1,132 gas cases

• 614 water cases.

Electricity issues continue to dominate our complaints, accounting for 86 per cent of all cases(see Graph 1), while there was a 33 per cent decline in water complaints this year. Gas complaints remained steady.

Graph 1: Closed electricity, gas and water cases

OUR CUSTOMERSAND THEIR ISSUES

“THANK YOU FOR YOUR ASSISTANCE IN FINAL CLOSURE FOR THE ACCOUNT WITH

[ENTITY] IT WAS VERY MUCH APPRECIATED.”

10

Table 1: Who contacted EWOQ

Sector 2008-09 2009-10 2010-11 2011-12 2012-13

Residential 12,980 12,166 12,269 13,041 13,470

Small business 467 415 418 470 616

Government 9 9 15 11 10

TOTAL 13,456 12,590 12,702 13,522 14,096

Residential customer complaints steadily increased over the past fi ve years, and this year made up the vast majority of EWOQ’s cases (96 per cent or 13,470). Small business customer complaints increased 35 per cent to hit a new high of 616 this year.

Graph 2: Who contacted EWOQ

“THANK YOU FOR THE WORK YOU PUT INTO RESOLVING MY BILLING PROBLEM, I REALLY DO APPRECIATE IT!”

11

Table 2: How customers contacted EWOQ

Contact method 2008-09 2009-10 2010-11 2011-12 2012-13

Telephone 12,452 11,159 10,135 9,919 10,269

Website 320 647 1,194 1,880 1,928

Email 326 453 869 1,323 1,488

Other* 358 331 504 400 411

TOTAL 13,456 12,590 12,702 13,522 14,096

NOTES:* Other includes contact by letter, in person and fax.

Graph 3: How customers contacted EWOQ

Customer outcomesIn 2012-13, we secured 10,621 outcomes for more than 9,100 customers. An outcome can include debt or fee waiver, billing adjustment, credit default listing amended, goodwill gesture, payment planor hardship program offered, reimbursement, or information provided by a scheme participant or EWOQ to the customer. Over $902,059 was delivered in monetary outcomes for customers.

DiversityEWOQ only collects personal information about our customers, such as cultural diversity or disabilities, if it is relevant to their case.

However, through the Australian Government’s Translating and Interpreting Service we assisted customers who spoke the following languages:

• Arabic• Cantonese• Dinka• Japanese• Korean

• Mandarin• Persian• Serbian• Spanish• Vietnamese.

12

The issues

As with previous years, billing is our biggest complaint issue (see Graph 4). We closed 6,299billing complaints, making up 60 per cent of our complaints, followed by credit with 1,440 (14 per cent of all complaints), transfer (nine per cent or 980 complaints) and customer service (eight per centor 829 complaints).

Billing and credit have been climbing steadily over the last few years. Compared to last year,credit complaints increased by 11 per cent and billing increased by seven per cent.

A number of electricity retailers experienced diffi culties in establishing new billing systems which led to an increase in the number of billing complaints. Marketing cases again fell no doubt due to better marketing practices and the cessation of door-to-door marketing by several retailers.

The signifi cant fall in customer service cases was due to changes in our case categorisation.

Graph 4: Closed complaints by primary issue

13

ELECTRICITYAccounting for 59 per cent with 5,716 of all our electricity complaints, billing remains the biggest issue for customers (see Graph 5 and Table 3). This is an increase of 14 per cent from 2011-12 and can be attributed to problems some scheme participants are experiencing with updating their billing systems.

Graph 5: Closed electricity complaints by primary issue 2012-13

Table 3: Closed electricity complaints by primary issue and type 2012-13

Primary issue Refer backRefer to

Higher Level Investigation Total

Billing 2,088 2,571 1,057 5,716

Credit 406 586 342 1,334

Transfer 306 463 171 940

Customer service 389 339 40 768

Provision 183 125 69 377

Other 141 45 0 186

Marketing 68 87 14 169

Supply 54 25 16 95

Land 17 5 3 25

TOTAL 3,652 4,246 1,712 9,610

5,716 1,334 940

25

14

Not surprisingly, high bills, errors and delays account for the majority of our electricity billing investigations (see Table 4).

Credit cases continue to be a cause for concern for our customers, with 13 per cent, or 1,334,of our electricity complaints relating to this issue.

Table 4: Electricity investigations by primary and secondary issues

Primary issue Secondary issue 2009-10 2010-11 2011-12 2012-13

Billing

High 457 419 377 322

Error 315 183 228 181

Delay 139 70 109 169

Other 131 102 93 87

Tariff 31 25 54 83

Backbill 86 57 49 56

Estimation 54 64 68 49

Meter 62 58 49 40

Rebate/Concession 54 30 18 29

Fees & charges 182 64 25 25

Refund 24 22 23 16

TOTAL 1,535 1,094 1,093 1,057

Credit

Collection 128 146 137 160

Disconnection/Restriction 73 115 121 139

Payment diffi culties 58 46 55 43

TOTAL 259 307 313 342

Transfer

Without consent 33 57 38 47

Delay 41 13 26 31

In error 30 55 43 25

Cooling-off rights 11 17 22 19

Billing 24 7 16 15

Site ownership 25 9 26 15

Objection/Rejected by retailer 13 2 9 10

Contract terms 17 25 14 9

TOTAL 194 185 194 171

Provision

Disconnection/Restriction 45 67 105 29

New connection 20 32 23 23

Existing connection 39 20 18 17

TOTAL 104 119 146 69

15

Primary issue Secondary issue 2009-10 2010-11 2011-12 2012-13

Customerservice

Failure to respond 41 27 41 19

Incorrect advice or information 31 24 23 8

Failure to consult or inform 11 15 11 5

Poor service 34 33 32 5

Privacy 1 1 2 2

Poor/Unprofessional attitude 7 5 1 1

TOTAL 125 105 110 40

Supply

Variation 4 4 3 8

Quality 4 1 1 5

Off supply (planned) 4 1 3 2

Off supply (unplanned) 18 9 6 1

Sustainability initiatives 2 1 0 0

TOTAL 32 16 13 16

Marketing

Misleading 55 25 22 7

Other 17 14 2 4

Non account holder 7 2 0 2

Pressure/coercion 11 2 1 1

Information 5 4 1 0

TOTAL 95 47 26 14

Land

Vegetation management 2 4 3 2

Network assets 5 6 3 1

Other 7 7 2 0

TOTAL 14 17 8 3

GRAND TOTAL 2,358 1,890 1,903 1,712

16

Electricity retailers

The tables below track the issues our customers had with retailers over the last four years.

The vast majority (96 per cent) of electricity cases relate to retailers. This year EWOQ closed 9,204 complaints against electricity retailers (see Tables 5 and 6). Billing issues (5,716) increased by 14 per cent,credit (1,334) was up 13 per cent and transfer issues (940) increased by 12 per cent. Provision complaints(254) decreased by 26 per cent while marketing complaints (169) fell by 33 per cent.

Table 5: Closed electricity retailer complaints by issue

Primary issue Scheme participant 2009-10 2010-11 2011-12 2012-13

Billing

Origin Energy Electricity Ltd 2,076 2,403 3,115 3,283

AGL Sales (Queensland Electricity) Pty Ltd

2,015 1,087 672 673

EnergyAustralia Pty Ltd* 0 0 0 611

Lumo Energy 542 353 265 252

Ergon Energy Qld Pty Ltd 164 208 192 246

TRUenergy Pty Ltd** 179 211 521 197

Click Energy Pty Ltd 0 16 46 148

Australian Power and Gas Pty Ltd 6 62 126 139

Powerdirect Pty Ltd 41 53 46 90

QEnergy Pty Ltd 0 0 10 41

Sanctuary Energy Pty Ltd 0 1 6 25

Dodo Power & Gas Pty Ltd 0 0 2 10

Diamond Energy Pty Ltd 0 0 0 1

TOTAL 5,023 4,394 5,001 5,716

Credit

Origin Energy Electricity Ltd 324 498 675 756


289 284 270 293





Lumo Energy 52 37 40 30





TOTAL 790 938 1,178 1,334

17


Transfer





219 181 126 115

Lumo Energy 100 258 143 54







Simply Energy 0 0 0 1


TOTAL 684 959 837 940

Customerservice



279 247 160 103











TOTAL 906 1,039 1,205 657

Provision



84 86 49 42








18


Provision (cont.)





Momentum Energy Pty Ltd 0 1 1 0

TOTAL 218 320 345 254

Marketing





238 114 49 26








TOTAL 805 636 252 169

Other




68 31 44 23









TOTAL 229 160 279 134

19


Land***


Lumo Energy 1 0 0 0


TOTAL 5 0 0 0

Supply***


37 24 0 0


Lumo Energy 8 9 0 0




TRUenergy Pty Ltd 5 5 0 0

TOTAL 146 113 0 0

GRAND TOTAL 8,806 8,559 9,097 9,204

NOTES:

* EnergyAustralia was previously known as TRUenergy until 1 December 2012. ** TRUenergy was renamed as EnergyAustralia on 1 December 2012.*** Due to changes in the categorisation of issues, this data is captured elsewhere.

“THANK YOU SO MUCH FOR ALL OF YOUR HELP. AS I’M SURE YOU CAN IMAGINE, WE ARE

THRILLED WITH THE RESULT. IT’S BEEN SUCH A BATTLE WITH [ENTITY] SINCE THEY CUT OUR

POWER OFF ALL THAT TIME AGO. I’M SO PLEASED THAT IT’S OVER AND DONE WITH!!”

20

Table 6: Closed electricity complaints by retailer

Scheme participant Primary issue 2009-10 2010-11 2011-12 2012-13

Origin Energy Electricity Ltd

Billing 2,076 2,403 3,115 3,283

Credit 324 498 675 756


Transfer 318 237 228 249

Provision 103 157 192 111

Marketing 375 187 46 57

Other 126 85 144 53

Land* 2 0 0 0

Supply* 79 52 0 0

TOTAL 3,834 4,113 5,142 4,813


Billing 2,015 1,087 672 673

Credit 289 284 270 293

Transfer 219 181 126 115


Provision 84 86 49 42

Marketing 238 114 49 26

Other 68 31 44 23

Supply* 37 24 0 0

TOTAL 3,229 2,054 1,370 1,275

EnergyAustralia Pty Ltd**

Billing 0 0 0 611

Transfer 0 0 0 229


Credit 0 0 0 60

Marketing 0 0 0 37

Provision 0 0 0 22

Other 0 0 0 10

TOTAL 0 0 0 1,063

TRUenergy Pty Ltd***

Billing 179 211 521 197

Transfer 36 192 268 183


Credit 27 32 110 36



Other 8 8 27 4

Supply* 5 5 0 0

TOTAL 321 686 1,176 511

21


Ergon Energy Qld Pty Ltd

Billing 164 208 192 246

Credit 94 84 47 60



Other 9 19 26 25

Marketing 2 0 0 1

Land* 2 0 0 0

Supply* 13 19 35 0

Transfer 1 6 0 0

TOTAL 331 427 355 391

Lumo Energy

Billing 542 353 265 252

Transfer 100 258 143 54

Credit 52 37 40 30


Other 18 9 16 9



Land* 1 0 0 0

Supply* 8 9 0 0

TOTAL 993 943 560 377

Australian Power and Gas Pty Ltd

Billing 6 62 126 139

Credit 2 1 23 53

Transfer 0 52 46 38


Provision 0 8 14 10

Marketing 4 48 41 4

Other 0 7 12 2

TOTAL 15 193 296 261

Click Energy Pty Ltd

Billing 0 16 46 148

Transfer 0 8 10 34


Credit 0 0 5 8

Marketing 0 3 0 6

Provision 0 3 0 6

Other 0 1 1 2

TOTAL 0 34 69 222

22


Powerdirect Pty Ltd

Billing 41 53 46 90

Credit 2 2 6 24


Transfer 10 24 7 10

Other 0 0 7 2

Provision 1 4 2 2

Marketing 21 3 0 0

Supply* 2 3 0 0

TOTAL 83 101 83 141

QEnergy Pty Ltd

Billing 0 0 10 41

Credit 0 0 2 11

Transfer 0 1 6 10

Provision 0 0 0 3


Other 0 0 1 2

Marketing 0 0 1 1

Supply* 0 1 0 0

TOTAL 0 2 21 70

Sanctuary Energy Pty Ltd

Billing 0 1 6 25


Transfer 0 0 1 11

Credit 0 0 0 3

Provision 0 2 0 3

Other 0 0 1 2

Marketing 0 0 6 1

TOTAL 0 5 20 59

Dodo Power & Gas Pty Ltd

Billing 0 0 2 10

Transfer 0 0 2 6


Provision 0 0 0 1

TOTAL 0 0 4 18

Simply EnergyProvision 0 0 0 1

Transfer 0 0 0 1

TOTAL 0 0 0 2

Diamond Energy Pty Ltd Billing 0 0 0 1

TOTAL 0 0 0 1

Momentum Energy Pty Ltd Provision 0 1 1 0

TOTAL 0 1 1 0

GRAND TOTAL 8,806 8,559 9,097 9,204

NOTES: * Due to changes in the categorisation of these issues, this data is captured elsewhere. ** EnergyAustralia was previously known as TRUenergy until 1 December 2012.*** TRUenergy was renamed as EnergyAustralia on 1 December 2012.

23

Electricity distributors

The tables below track the issues our customers had with distributors over the last four years.

This year EWOQ closed 406 complaints against electricity distributors, down by 20 per cent on last year (see Tables 7 and 8). Supply issues (95) increased by nine per cent while land complaints (25) declined by 32 per cent.

Table 7: Closed electricity distributor complaints by issue


Provision

ENERGEX Ltd 65 78 88 78

Ergon Energy Corporation Ltd 27 35 41 44

Essential Energy 0 2 1 1

TOTAL 92 115 130 123

Customer service



TOTAL 85 160 189 111

Supply




TOTAL 133 115 87 95

Other




TOTAL 34 43 66 52

LandENERGEX Ltd 29 23 21 17


TOTAL 42 50 37 25

BillingENERGEX Ltd 19 6 0 0


TOTAL 25 9 0 0

Credit ENERGEX Ltd 1 0 0 0

TOTAL 1 0 0 0

Transfer Essential Energy 1 0 0 0

TOTAL 1 0 0 0

GRAND TOTAL 413 492 509 406

24

Table 8: Closed electricity complaints by distributor


ENERGEX Ltd



Supply 82 77 61 67

Other 31 40 55 44

Land 29 23 21 17

Billing 19 6 0 0

Credit 1 0 0 0

TOTAL 298 353 376 296

Ergon EnergyCorporation Ltd


Supply 51 38 25 27


Land 13 27 16 8

Other 3 3 11 7

Billing 6 3 0 0

TOTAL 114 137 131 107

Essential Energy

Other 0 0 0 1

Provision 0 2 1 1

Supply 0 0 1 1

Transfer 1 0 0 0

TOTAL 1 2 2 3

GRAND TOTAL 413 492 509 406

“… EXPRESS TO HER MY DEEP GRATITUDE FOR HER UNDERSTANDING AND FOR TAKING ON BOARD EVERYTHING I SAID.”

25

Case studies

From $4,800 electricity bill to just $43

The customer had been away from his house for three months and only had his hot water system, fridge and freezer running during this time.On return, his electricity bill was $4,300 – usually they were around $145. The customer contacted his retailer who advised that the last read was estimated so they arranged for a special readto be taken. He then received a letter apologising for the error in his bill and a new bill for $4,800.He then contacted EWOQ for help as he believed the bill was unreasonably high.

Outcome: On investigation, EWOQ discovered the customer’s meter had not been read for two years, so his bills had been issued on estimated readings which underestimated his energy use. The retailer acknowledged that they could not gain access to the meter but only notifi ed the customer once of the access issues, ten months before he came to EWOQ. Under the Electricity Industry Code, retailers must use their ‘best endeavours’ to read the meter at least once every 12 months. In addition, they can only back-bill for the previous nine months. Based on this, EWOQ arranged for the bill to be reissued, bringing the total to $3,857. However, a meter reading error was identifi ed on the amended bill which reduced the bill to just $43.

EWOQ advised the customer that he needed to provide clear and uninhibited access to the meter to avoid receiving bills based on estimated readsin the future.

Wrong tariff puts farmer under the pump

A farmer believed his retailer changed the tariff for his irrigation pump meters without any consultation, and then overcharged him.He believed the calculations were wrongly based on a peak tariff and not the off-peak tariff.He contacted his retailer but they maintainedthe bill was correct and threatened to disconnectif he did not pay. The farmer contacted EWOQfor assistance.

Outcome: On investigation, EWOQ confi rmed thefarmer’s meters were on a peak tariff and not off-peak.In addition, the farmer had been underchargedthe access charges for the off-peak tariff. The error had been made when his account was transferred to the retailer following deregulation of the electricity industry. When this was explainedto him, he agreed to pay the money owing.

False electricity account accrues bad debt

After being refused a personal loan, a lady discovered she had been default listed for a debt of $743 owed to an electricity retailer. She had never been a customer of the retailer. When she contacted the retailer she found that an electricity account had been established in her name ather mother’s address without her knowledgeor permission. She attempted to resolve theissue with the retailer but failing to do so, contacted EWOQ.

Outcome: When EWOQ contacted the retailer, they stated the account had been set up in her name and unless she could prove she did not live at the address during the period, she was liable for the debt. The lady was able to provide EWOQ a number of documents that proved she lived elsewhere. The electricity retailer accepted thisand removed the debt listing.

Unwanted transfer cancelled

After taking a phone call from an electricity telemarketer, a man requested a letter outliningthe terms of the contract so he could considerthe details and get back to the retailer if he wanted to transfer. The man provided his Medicare number on request for identifi cation purposes but at no time did he recall agreeing to enter into a contract with the retailer. He later received the letter containing terms of the contract but decided to remain with his current retailer. He then receiveda letter from his current retailer advising his account was being transferred. He contactedthe new retailer and was informed he had agreed to the transfer and the 10-day cooling-off period had expired. The new retailer maintained he must have known he agreed to the new contract when he provided his Medicare number and would needto pay the early exit fee if he wished to terminate the contract.

Outcome: On investigation, it was discoveredthe retailer had been informed by the telemarketer that the customer agreed to the transfer. As the customer disputed this, the retailer cancelledthe contract without penalty and transferred him back to his original retailer.

26

Carer battles to set up payment plan

A customer, on a pension caring for her two children with disabilities, set up a fortnightly payment plan with her electricity retailer to cover her bills. Under the plan, payments would be automatically deducted from her credit card.Later she was advised a number of payments were dishonoured by her bank and the plan would be discontinued. She disputed this as there were no bank records indicating the retailer had tried to debit the funds. The plan was reinstated but she was then told by the retailer that her credit card number was incorrect. Again, she disputed thisas her retailer had taken payments by the credit card earlier. In addition she had not received paperwork for a ‘life support form’ as requested. The customer contacted EWOQ concerned her bill was not being paid and that a disconnection would severely impact her children’s health.

Outcome: EWOQ contacted the retailer to identify why payments were not being collected. Bank statements revealed the direct debit payments were not being dishonoured but further investigation confi rmed her retailer had incorrect credit card details. As a result of this error,the retailer credited her account with $1,000for the missed payments. They also resent the life support forms, provided Home Energy Emergency Assistance Scheme application forms and offered her access to their hardship program.

Failed to tick a box

A resident in a unit block became the authorised representative on the Body Corporate accountfor electricity consumed in the communal area.She rang the retailer to amend the mailing address for all future bills and was told it had been updated. Despite this, she did not receive bills at her address. She then started receiving overdue accounts, and later a disconnection notice. Every time she rangthe retailer to check the mailing address, they insistedit was correct. Frustrated, she contacted EWOQ.

Outcome: EWOQ investigated and discovered that the address had been updated but the retailer’s customer service representative failed to select it as the mailing address. Consequently, another person was receiving the bills. The retailer apologised and made a goodwill payment of $142 for the inconvenience caused by their mistake.

Flatmate lands in hot water

A customer contacted EWOQ concerned that power surges were causing her hot water system to shut down, leaving her without hot water.She agreed to refer her case to a higher level with the distributor. The distributor replaced the relay which operated on a timer system, turning therelay on and off at the same time each day.She thought the case was resolved but whenshe lost hot water again, she contacted EWOQto investigate.

Outcome: During the investigation additional testing confi rmed the relay was working asit should. After discussions with the customer,it was discovered a second person had movedinto the property and used hot water on the weekend for washing. The problem had beenan overuse of hot water on certain days rather than a malfunctioning relay or power surges.The customer was satisfi ed with these fi ndings and was able to bring the issue to the attentionof her fl atmate.

27

GASThis year we closed 459 gas complaints, down 39 per cent compared to 2011-12.

Billing remained the biggest complaint for gas customers (263), followed by credit (75) (see Graph 6).Both of these issues are down (billing by 36 per cent and credit by 24 per cent) on the previous year.

Half of our gas customers were assisted through the Refer to Higher Level process (Table 9).

Graph 6: Closed gas complaints by primary issue 2012-13

CUSTOMERSERVICE

PROVISION

Table 9: Closed gas complaints by primary issue and type 2012-13



Billing 77 136 50 263

Credit 18 38 19 75

Transfer 13 19 8 40



Other 5 2 0 7

Supply 5 1 0 6

Land 1 0 0 1

Marketing 1 0 0 1

TOTAL 141 225 93 459

28

Gas retailers

The tables below track the issues our customers had with gas retailers over the last four years.

EWOQ closed 442 complaints against gas retailers in 2012-13, a drop of 39 per cent on last year.This was driven by fewer billing complaints (263), down 36 per cent compared to last year, although all categories of complaint fell during the year including complaints about customer service (69 per cent). The signifi cant fall in customer service complaints was due to changes in our case categorisation.

Table 10: Closed gas retailer complaints by primary issue


Billing

Origin Energy Retail Ltd 114 144 287 172

AGL Sales (Queensland) Pty Ltd 288 238 115 79


Maranoa Regional Council 0 1 0 2

Western Downs Regional Council 1 0 1 2

TOTAL 406 384 412 263

Credit




TOTAL 39 61 99 75

Transfer




TOTAL 25 51 41 40

Customer service




TOTAL 51 65 94 29

Provision




TOTAL 23 49 58 29

Other




TOTAL 18 10 19 5

Marketing




TOTAL 10 10 7 1

Supply* AGL Sales (Queensland) Pty Ltd 5 5 0 0


TOTAL 19 21 0 0

GRAND TOTAL 591 651 730 442

NOTES:* Due to changes in the categorisation of this issue, this data is captured elsewhere.

29

Table 11: Closed gas complaints by retailer


Origin Energy Retail Ltd

Billing 114 144 287 172

Credit 17 36 66 42

Transfer 13 13 18 20



Other 9 8 16 3

Marketing 3 2 3 0

Supply 14 16 0 0

TOTAL 202 275 491 267

AGL Sales (Queensland) Pty Ltd

Billing 288 238 115 79

Credit 22 24 33 29


Transfer 12 34 19 15


Other 8 2 2 2

Marketing 7 7 4 1

Supply 5 5 0 0

TOTAL 384 368 222 153

Australian Power and Gas Pty Ltd

Billing 3 1 9 8

Transfer 0 4 4 5

Credit 0 1 0 4


Other 1 0 1 0

Marketing 0 1 0 0

Provision 0 0 1 0

TOTAL 4 7 16 18

Maranoa Regional Council Billing 0 1 0 2

TOTAL 0 1 0 2

Western DownsRegional Council

Billing 1 0 1 2

TOTAL 1 0 1 2

GRAND TOTAL 591 651 730 442

30

Gas distributors

This year there were 17 complaints against gas distributors, down 43 per cent on last year. Provision andsupply were the dominant issues for customers, with six complaints each (see Tables 12 and 13).

Table 12: Closed gas distributor complaints by primary issue


Provision Envestra Limited 1 3 1 4

Allgas Energy Pty Ltd 3 5 7 2

TOTAL 4 8 8 6

Supply Allgas Energy Pty Ltd 10 13 9 5

Envestra Limited 3 1 3 1

TOTAL 13 14 12 6

Customer service



TOTAL 8 5 8 2

Other




0 1 0 0

TOTAL 0 3 1 2

Land Allgas Energy Pty Ltd 0 1 1 1

TOTAL 0 1 1 1

Billing Allgas Energy Pty Ltd 1 1 0 0

TOTAL 1 1 0 0

GRAND TOTAL 26 32 30 17

Table 13: Closed gas complaints by distributor


Allgas Energy Pty Ltd

Supply 10 13 9 5

Provision 3 5 7 2


Land 0 1 1 1

Other 0 1 0 1

Billing 1 1 0 0

TOTAL 22 24 22 10

Envestra Limited

Provision 1 3 1 4


Other 0 1 1 1

Supply 3 1 3 1

TOTAL 4 7 8 7


Billing 0 1 0 0

TOTAL 0 1 0 0

GRAND TOTAL 26 32 30 17

31

Case studies

Failure to inform costs dearly

A customer contacted his gas retailer to arrange for a meter to be relocated due to renovations at his property. The retailer forwarded the necessary forms but the customer noted they were for meter removal rather than relocation. Concerned, he contacted the retailer and was advised they only have one form and he should write ‘meter to be capped at property’ on it.

After the works were completed, the customerdiscovered that his supply had been removed andcapped at the gas main. After contacting his retailer again, he was advised that the retailer had doneas requested and if he wanted supply reconnected it would cost $1,882. Unhappy with the response,he contacted EWOQ and, with the customer’sconsent, we referred his case to a higher levelat his retailer. Again his retailer claimed that they were not in the wrong and the customer had not told them he was renovating. Unsatisfi ed withthe response, we launched an investigation forthe customer.

Outcome: EWOQ obtained a voice recordingwhich confi rmed that the customer requestedthe gas meter be disconnected and removed (rather than relocated as he thought), and the gasservice line removed as they would be ‘digging underground’. However, in Queensland, retailersmust inform customers that meter relocation is a more cost-effective option than a complete removal. EWOQ found that the retailer had failedto provide this advice. The retailer apologisedfor their omission and agreed to pay for the service line to be replaced.

Customer billed for gas meter 600km away

Despite paying her gas bills for over two years at her home, a customer’s gas supply was disconnected. When she queried her retailer,she discovered the account she had been paying was not for the meter at her premises but forone located 600 kilometres away.

Her retailer identifi ed the correct meter andthen billed her $500 for usage since the gaswas reconnected. Unable to pay in full by thedue date, the customer tried to set up a payment plan but experienced diffi culty in organising it with the retailer. Confused about which was the correct account and receiving payment demands shewas unable to meet, she contacted EWOQfor assistance.

Outcome: EWOQ confi rmed the correct account and meter number for the customer and negotiated with the retailer to waive the bills previously paid for the incorrect meter. The $800 the customer had paid on the incorrect account was then transferred to her account. This left a credit on her new account so a payment plan was no longer required. In addition, the retailer apologised for their mistake and offered a goodwill gesture of $50.

Internal mix-up causes connection delay

A customer planned to open a new sushi shopand needed gas installed to the premises.He contacted his retailer to arrange the connection but after three months and numerous requests, the gas was still not connected. He contacted EWOQ for assistance. With the customer’s consent, EWOQ referred his case to a higher level at his retailer. Despite the customer being told that connection would take place within seven days,nothing happened. Several weeks later the customer again contacted EWOQ for assistance.

Outcome: On investigation, EWOQ found that the retailer advised the customer that a Gas Supply Investigation was required. This entailed the gas distributor conducting a site visit to determine ifa connection could be completed and to providea quote for the work. Once a quote is acceptedby the customer, connection is completed within20 business days. However, EWOQ found that the customer did not return the quote for some weeks. Then, once the service order was raised for the connection, there were further delays with the distributor which extended the timeframe beyond 20 business days. In light of the delays, EWOQ was able to negotiate the new connection quickly and secure a $100 goodwill gesture from the retailer for not resolving the customer’s complaint when it was referred to a higher level.

32

Supply disconnected at the wrong house

A customer who was relocating and renovating her house rang her gas retailer to request a fi nal read and abolition of the gas meter. She also established a new gas account for the rental property she was moving into.

When she moved into the new property shefound the gas disconnected, the road dug upand the pipe removed.

She contacted her retailer to fi nd out what happened and was advised they had abolishedthe gas supply at her new address – not the old one as requested. The retailer offered to supplygas bottles until the gas was reconnected.

The customer was very concerned about safetyif the gas was not disconnected at the old address. It also delayed the house move by three weeks; delaying the builders, increasing excavation costs and incurring additional rental costs.

She contacted EWOQ as the gas bottles wereempty and the gas had still not been reconnected at the new property. She also sought compensationfor the costs incurred by the wrongful disconnection.

Outcome: EWOQ investigated the case and found that the retailer had confused the addresses at whichthe work was to take place. EWOQ negotiated $4,100 in compensation to cover the extra excavation costs, additional rent and a goodwill gesture. We also negotiated for the gas to be reconnected quickly at the new premises and ensured the customer was not liable for any costs associated with the reconnection.

Wrong email address delays connection

A customer rang EWOQ to advise that she had been waiting two months for a gas connection to her newly completed home. When she contacted the distributor to enquire about progress,she was given the contractor’s contact details.On contacting the contractor, she discovered he had not received the service order to complete the connection. The customer told EWOQ she was applying for the Queensland Government’s Building Boost grant and had been given an extensionof time in which to claim. However, she neededthe gas connected before she could submither application.

Outcome: EWOQ investigated her case and found the distributor had caused the delay as they usedan incorrect email address to send the service order to the contractor. EWOQ was able to organise the gas connection to be completed within two days and in time for her to apply forthe building grant.

“… I REALISED JUST HOW THANKFUL I WAS FOR THE ASSISTANCE GIVEN TO ME BY YOU GUYS IN THE OMBUDSMAN’S OFFICE.”

33

WATERThis year we closed 436 water complaints, down 41 per cent on last year. Half of these were refer backs, 33 per cent were Refer to Higher Level and 17 per cent were investigations (see Table 14).

As with electricity and gas, billing was the major issue for water customers (see Graph 7).

Graph 7: Closed water complaints by primary issue 2012-13

Table 14: Closed water complaints by primary issue and case type 2012-13



Billing 155 110 55 320

Credit 10 16 5 31


Other 18 6 0 24

Provision 8 6 0 14

Supply 4 0 7 11

Land 1 1 4 6

TOTAL 218 145 73 436

34

Water retailers

The tables below track the issues our customers had with retailers over the last three years.

This year EWOQ closed 391 complaints against water retailers. This is down by 41 per cent on last year.This fall in complaints can be attributed to the disestablishment of Allconnex Water and transfer of its responsibilities to the Gold Coast, Logan and Redland City Councils. In 2011-12 we received 255 billing complaints against Allconnex Water. However, the combined number of complaints against these councils in 2012-13 was only 88. Billing complaints (320) fell by 30 per cent while credit complaints (34) rose by 36 per cent.

Table 15: Closed water retailer complaints by primary issue

Primary issue Scheme participant 2010-11 2011-12 2012-13

Billing

Unitywater 89 104 133

Queensland Urban Utilities 62 96 99

Gold Coast City Council 0 0 58

Logan City Council 0 0 18

Redland City Council 0 0 12

Allconnex Water* 161 255 0

TOTAL 312 455 320

Credit

Unitywater 2 4 25




TOTAL 5 25 31

Customer service

Unitywater 10 19 9





TOTAL 41 91 21

Other

Unitywater 21 16 5




TOTAL 72 83 11

Provision


Unitywater 1 1 3



TOTAL 7 8 8

GRAND TOTAL 437 662 391

NOTES:

* Allconnex Water was disestablished on 30 June 2012. Its water and wastewater services were transferred to Gold Coast,Logan and Redland City Councils.

35

Table 16: Closed water complaints by retailer

Scheme participant Primary issue 2010-11 2011-12 2012-13

Unitywater

Billing 89 104 133

Credit 2 4 25

Customer service 10 19 9

Other 21 16 5

Provision 1 1 3

TOTAL 123 144 175

Queensland Urban Utilities

Billing 62 96 99


Credit 0 8 4

Other 12 19 4

Provision 3 3 4

TOTAL 82 141 118

Gold Coast City Council

Billing 0 0 58

Credit 0 0 2


Other 0 0 2

Provision 0 0 1

TOTAL 0 0 67

Logan City CouncilBilling 0 0 18


TOTAL 0 0 19

Redland City Council Billing 0 0 12

TOTAL 0 0 12

Allconnex Water*

Billing 161 255 0

Credit 3 13 0


Other 39 48 0

Provision 3 4 0

TOTAL 232 377 0


NOTES:


36

Water distributors

The tables below track the issues our customers had with distributors over the last three years.

In 2012-13, EWOQ closed 45 complaints against water distributors, a decrease of 42 per centon last year.

Table 17: Closed water distributor complaints by primary issue

Primary issue Scheme participant 2010-11 2011-12 2012-13

Supply


Unitywater 3 6 3




TOTAL 5 14 11

Customer service

Unitywater 7 4 4





TOTAL 20 19 9

Land



Unitywater 0 6 2


TOTAL 9 18 6

Provision


Unitywater 0 1 3


TOTAL 1 5 6

Other


Unitywater 0 8 5



TOTAL 1 21 13


NOTES:


37

Table 18: Closed water complaints by distributor

Scheme participant Primary issue 2010-11 2011-12 2012-13

Queensland Urban Utilities

Other 1 2 7

Supply 2 6 6


Provision 0 3 3

Land 0 4 2

TOTAL 12 19 21

Unitywater

Other 0 8 5


Provision 0 1 3

Supply 3 6 3

Land 0 6 2

TOTAL 10 25 17

Logan City Council

Land 0 0 2


Supply 0 0 1

TOTAL 0 0 4

Gold Coast City Council


Other 0 0 1

Supply 0 0 1

TOTAL 0 0 3

Allconnex Water*


Land 9 8 0

Other 0 11 0

Provision 1 1 0

Supply 0 2 0

TOTAL 14 33 0


NOTES:


38

Case studies

Pensioner swimming in debt

A customer received a very high bill and contacted her water distributor-retailer. She was advisedto engage a plumber as she could have a leak.No advice was provided about conducting her own test (which is a simple matter of turning off all taps and monitoring the water meter). As the customer was on a pension and had little money, she tried to fi nd the leak herself. When she thought she found it,she engaged a plumber who assured her that the leak was fi xed.

She then received a second high bill. The customer engaged another plumber who found a concealed leak under a concrete pathway. By then, the customer owed $3,720 in water charges.

She contacted her distributor-retailer againto explain her situation. She was advised to complete a concealed leak application form.Many distributor-retailers are prepared to providea rebate to a customer where excessive amountsof water are used because of concealed leaks on the customer’s property.

The customer completed the form and later received a rebate to the value of 239 kilolitres.

The customer contacted the distributor-retaileras she was unhappy with the amount of the rebate given their policy allowed for up to a 500 kilolitre rebate. She was told that a representative would contact her. Instead, she received an email advising that she was not entitled to any further rebate.She was also informed that late payment interest fees would accumulate if she did not paythe account.

The customer contacted EWOQ confused – she thought she would receive notifi cation alerting her to high usage but this did not occur. She was also concerned that she could not afford to pay the bill and had not received enough assistance whenshe fi rst contacted the distributor-retailer.

Outcome: EWOQ contacted the distributor-retailer to investigate the case. When they reviewed the customer’s fi le, an error was found in assessing the amount of water consumed during the relevant period, resulting in an additional rebate of $337 for the customer. EWOQ also negotiated a waiver of late payment interest fees, reducing the debt by another $208. We then arranged a payment plan for the customer to pay off the remaining account in affordable fortnightly instalments.

EWOQ also informed the customer that under the Customer Water and Wastewater Code, distributor-retailers are not required to notify customers of excessive water consumption, although some will provide the information as a customer service.

Property transfer causes trouble

A customer purchased a property and commenced receiving water bills, which she paid. Later the bills stopped. After a lapse of 12 months she received a bill for $2,600. She contacted her water distributor-retailer who advised that there had been a mix-up with her account and somebody else had been paying the bills. Concerned, she contacted EWOQ for assistance.

Outcome: On investigation, EWOQ discovered the property was previously owned by the Queensland Housing Commission (QHC) and classifi ed as a multi-dwelling. Ownership was transferred to the customer when she purchased the property but theQHC was still showing as the owner in the distributor-retailer’s records. This error occurred when water services were transferred from the local council to the distributor-retailer. The distributor-retailer then incorrectly placed the property on the master list which contained all properties owned by QHC in their service area, adding to the confusion.

Accounts were then sent to the QHC instead of the customer. The error was realised some time later and the QHC notifi ed the distributor-retailer they no longer owned the property. The account was sent to the customer but by this stage she owed $2,818.

During the investigation EWOQ also discovered the customer had been charged at non-residential rates even though the property had been reclassifi ed to residential following renovations after she purchased it. The distributor-retailer reimbursed $700 for the overcharged rates and offered a $350 goodwill gesture for their errors. EWOQ also negotiated for the customer to pay the balance through an affordable payment plan.

Offer from water distributor fair and reasonable

A customer’s sewerage system overfl owed and fl ooded his house and garden. As a consequence, he and his family had to immediately leave their house for several weeks while the property was sterilised, and furniture and carpets replaced.

A plumber identifi ed the problem as an unintentional bow, or bend, in a section of the sewerage pipe which caused a blockage. The water distributor-retailer also carried out an investigation and initially decided to replace the pipe. However, this would have been an expensive option and have a severe impact on neighbours. Instead, the line was fl ushed and the blockage cleared. The distributor-retailer also recommended that the customer install a refl ux valve on his property which they offered to pay for. The customer contacted EWOQ concerned about the risk of another blockage and dissatisfi ed with the distributor-retailer’s refusal to replace the pipe.

39

Outcome: EWOQ took up the matter with the distributor-retailer and was advised that the bendin the line at the customer’s premises was minorand the most effective method of minimising the risk of blockage was to clean and monitor the sewer lines every six months. The customer still felt this solution was ineffective and an unsatisfactory response. EWOQ further investigated but the distributor-retailer maintained that they had offered the best possible solution.As an outcome could not be reached, the matterwas escalated to the Ombudsman. On reviewing the facts, it was considered that the distributor-retailerhad made a fair and reasonable offer – which included regular maintenance and reimbursement of the cost of upgrading the customer’s private network should he choose to do so.

Customer met halfway for repairs

A customer’s sewerage was blockedand overfl owing at her home so she calleda plumber who checked the pipes and partly cleared the blockage.

As the location of the blockage meant the distributor-retailer was responsible for repairs,the plumber contacted them and was told to clear the blockage himself. Excavation work was needed to access the pipes, and as a result, garden paving and a retaining wall were damaged. The plumber invoiced the customer $2,719 which she then claimed from the water distributor-retailer.

The distributor-retailer denied the claim as they were not given the opportunity to fi x the problem themselves (as per their policy). Customer service telephone recordings confi rmed that the plumber had not been asked to clear the blockage.The distributor-retailer also stated the blockage could have been repaired without excavation thereby minimising the damage to thecustomer’s property.

Nevertheless, in an attempt to resolve the issue, the distributor-retailer offered $1,446 for repairing the sewer connection. The customer was unhappy with the offer and believed all costs should have been covered. She then sought assistancefrom EWOQ.

Outcome: EWOQ advised the customer thatthe offer was fair and reasonable given theplumber’s misunderstanding and the expectationhe should have known not to fi x damage in viewof the responsibilities of the water distributor-retailer.The customer then accepted the distributor-retailer’s offer.

Misinformed customer reimbursed

One Friday afternoon, a customer discoveredhis toilet overfl owing and sewage fl owing intothe garden. He called a plumber to fi x the overfl ow which attracted after-hours penalty rates. The customer phoned his water distributor-retailerto discuss the situation and obtain a map of thesewerage line to confi rm the position and ownershipof the line where the blockage occurred. He was advised that no map was available. The private plumber then excavated and found that due to the location of the blockage responsibility for repair lay with the distributor-retailer. The plumber called the distributor-retailer who cleared the blockage.

The customer received a $2,090 bill fromthe plumber and sought restitution from the distributor-retailer. The distributor-retailer offered $550, to meet the cost of the plumber fi nding the blockage after hours. They refused to reimbursethe cost of the excavation works. The customer felt this outcome was unsatisfactory as he had been told the distributor-retailer would cover all costs. Unable to achieve a resolution, he contacted EWOQ for assistance.

Outcome: The water distributor-retailer eventually accepted that the customer believed he had been informed they would cover the plumbing costs, and offered another $500, bringing the total reimbursement to $1,050. The customer was satisfi ed with this outcome.

40

SYSTEMIC ISSUESA systemic issue is a problem a customer haswith an energy or water supplier which affects, or has the potential to affect, more than one customer. The issue may arise for any number of reasons including human error, inadequate planning, the absence of policies or procedures, poor training or failed systems. We identify potential systemic issues in a number of ways:

• investigation staff monitor complaints and identify potential systemic issues through our case management system

• the Policy and Research Team (PRT)reviews the complaints identifi ed as potential systemic issues and takes necessary action.PRT offi cers also liaise closely with investigationstaff to monitor complaint trends

• advice from the Advisory Council and collaborative relationships with scheme participants, government agencies, and other ombudsmen colleagues ensure we stay abreast of current and emerging systemic issues

• on occasions, scheme participants will inform us of a systemic issue, for example, a water distributor-retailer informed EWOQ that they duplicated the direct debit payments of1,600 customers

• a Systemic Issues Monitoring Committee which meets regularly to identify and discuss current and emerging systemic issues.

When a systemic issue is identifi ed, we provide detailed information immediately to the scheme participant about the issue and the customers affected. We also provide advice as to how we would like to see the issue resolved and the steps required to avoid recurrence.

We also advise the appropriate regulatory agency of any systemic issue that could constitute a legislative code or license breach, or violation. EWOQ does not possess any enforcement or prosecution powers.

Systemic issues in 2012-13

Systemic issues have increased by 110 per cent this year to 166, up from 79 last year (see Table 19).

The increase was due to improvements in ouridentifi cation, monitoring, recording and casemanagement of systemic issues and the work of the Systemic Issues Monitoring Committee which was established in 2013.

Billing systemic issues were more than double this year. This increase was due to our improved identifi cation processes and the increased number of systemic billing issues we investigated this year.

Transfer issues also increased from two last year to seven this year. This related to issues with marketing, and practices which saw customers being transferred without consent.

The increase in credit systemic issues related toscheme participants not giving adequate, or any, notice regarding debt collection activity.

Table 19: Closed systemic issues

Issue 2011-12 2012-13

Billing 27 69

Marketing 28 32

Other 5 29

Customer service 9 22

Transfer 2 7

Credit 0 4

Provision 7 1

Supply 1 1

Water 4 1

TOTAL 83 166

41

Case studies

New system delays bills

A customer installed a solar system and soonafter received a bill which failed to include a credit for his solar energy generation. The customer queried the account and was told a revised bill would be sent out but no further accounts were ever received. When he contacted his retailer again requesting the amended bill, he was given a variety of reasons for the delay and an array of timeframes in which to expect the bill. Unhappy with the poor customer service, the customer contacted EWOQ to receive his solar credits and to change retailers without penalty fees.

Outcome: EWOQ investigated the case and was advised by the retailer that errors had occurred when they changed billing systems and transferred customers to the new system. This affectedmany other customers, not just solar customers. Unfortunately they could not say when the issue would be rectifi ed. However, they agreed to transfer any affected customers without penalty and ensure solar customers would receive the credits due to them.

Suspicious conduct leads to marketing complaint

A customer advised EWOQ that he was approached at home by a marketer wearing the uniform of a particular electricity retailer.

During the conversation with the customer the marketer kept changing the name of the company he was working for. Eventually, the customer closed the door on the marketer.

The customer was concerned about the marketer misrepresenting himself, especially since he had previously experienced conduct like this withother marketers.

Outcome: This complaint was considered a systemic issue as it was likely that the marketer was using similar practices with other residents. EWOQ found that the marketer had already been suspended and was under investigation by Energy Assured Limited, which monitors the industry code of practice for door-to-door marketing.

Block delays bills

A number of customers contacted EWOQ to report they had not received electricity bills in nine months or more. Several noted that their meters had been read previously but no accounts were received.

Outcome: EWOQ’s investigation discoveredthat the retailer had instigated a ‘bill block’ (billing deliberately halted) to delay billing for customers while it resolved technical issues related to a systems migration project. The retailer contacted EWOQ’s customers to inform them of the event, sent out a letter to other affected customers and trained call centre staff in dealing with billing delay enquiries. The retailer also established a dedicated project team to reduce the billing delays and provided EWOQ with regular updates on the number of customers affected over the courseof the project.

Incorrect interest charges

A water distributor-retailer incorrectly charged interest to approximately 1,600 customer accounts.

Outcome: EWOQ investigated the issue and found that there had been a technical failure with the retailer’s billing systems. The retailer advised EWOQ that they were fi xing the issue and all affected customers would be notifi ed and have the interest charges reversed. They also advised EWOQ that their Customer Service Team had been briefed to ensure that customers calling in about the issue were fully informed of the actions being taken by the retailer.

42

OUR PERFORMANCEThe Australian Government developed benchmarks for industry-based customer dispute resolution schemes which we (and many other ombudsmen offi ces) use to measure the overall performance of our offi ce.

These benchmarks are:

EWOQ plans its activities and measures its success against these benchmarks. In addition, we must meet these benchmarks to continue our membership of the Australian and New Zealand Ombudsman Association.

We continue to exceed our service standards as outlined in 2012-13 Queensland State Budget – Service Delivery Statements – Energy and Water Ombudsman Queensland (see Table 20). These standards form part of the Queensland Government’s Performance Management Framework.

Table 20: Service standards 2012-13

Energy and Water Ombudsman Queensland Notes2012-13

Target/Est.2012-13Actual

Service standards

Percentage of customers who rate the performance of the Energy and WaterOmbudsman Queensland as satisfactory or better.

1 N/A N/A

Other measures

Percentage of complaints received which are completed by the Energy and Water Ombudsman Queensland.

95% 99%

Energy and water consumer complaints resolved within agreed standards.

90% 99%

NOTES:

1 EWOQ conducts Customer Satisfaction Surveys on a biennial basis. As a result, no target has been set for 2012-13.

During the fi nancial year, the Advisory Council accepted the Energy and Water Ombudsman’s recommendation to conduct an independent organisational review. As part of the independent organisational review, a customer satisfaction survey and staff survey were conducted in the latter part of the fi nancial year. The results of the customer satisfaction survey are that 82 per cent of customers rated the performance of EWOQ as satisfactory or better and 92 per cent of customers would recommend EWOQ to a friend if they had an energy or water complaint they could not resolve.

Finalising disputes

If EWOQ cannot get the parties to informally accept the outcome of an investigation, there area number of ways the matter can be fi nalised.

Firstly, a decision can be made under section 22 of the Act to not investigate or to discontinuethe investigation. There were 30 cases fi nalised in this way in 2012-13.

SCHEMEPERFORMANCE

• accessibility• independence• fairness

• accountability• effi ciency• effectiveness.

43

EWOQ has seen a steady increase in cases received and closed over the past four years (see Graph 9). In 2012-13, we received 14,266 cases (six per cent increase) and closed 14,096 cases, a four per cent increase on the previous year.

Graph 9: Cases received and closed year by year

ANNUAL REPORT 2012-2013

Secondly, the Energy and Water Ombudsman may decide under section 34 (2) of the Act to make or not to make an order in favour of a customer. Among other things, the Ombudsman can order energy and water suppliers to:

• pay compensation• provide a non-monetary solution

to remedy the dispute• perform corrective work

All investigations closed in 2012-13 were resolved by negotiation or conciliation and did not progressto a fi nal order.

Graph 8: Cases received and closed 2012-13

• amend a stated charge under the Act• cancel a negotiated contract• do or stop doing something.

44

Although there was a six per cent increase in cases received in 2012-13, EWOQ took less timeto close them, see Graph 10.

Graph 10: Average days to close cases by month*

NOTES:

* Rounded.

45

Ninety-one per cent of EWOQ’s cases were resolved within 28 days, 97 per cent within 60 days and 99 per cent were resolved in less than 90 days (Table 21). Given the increase in cases closed this year, EWOQ is continuing to perform well.

Table 21: EWOQ performance targets – time taken to resolve complaints

2009-10 2010-11 2011-12 2012-13

Less than 28 days 11,274 90% 11,665 92% 12,120 90% 12,889 91%

Less than 60 days 12,017 95% 12,345 97% 12,923 96% 13,697 97%

Less than 90 days 12,272 97% 12,542 99% 13,260 98% 13,932 99%

Over 90 days 318 3% 160 1% 262 2% 164 1%

Despite a 13 per cent decrease in 2012-13, Referral to Higher Level (RHL) cases (4,616) continue to be an effi cientand effective option for customers to resolve their routine complaints (see Graph 11).

Overall, investigations decreased by 13 per cent to 1,878. Investigations can be level 1, 2 or 3 depending on the time taken to resolve the issue.

Meanwhile, refer back to scheme participant (4,011) increased by 10 per cent and general enquiries (1,243) stayed atthe same level.

If a case is outside EWOQ’s jurisdiction they will be referred to another organisation to deal with. Referrals doubled from 1,175 to 2,348 in 2012-13.

Graph 11: Closed case types

1

3

2

46

“ONCE AGAIN, I THANK YOU AND I THANK YOUR OFFICE. I KNOW MY ELDERLY AUNT AND UNCLE ARE GREATLY RELIEVED AS THEY COULD NOT HAVE COPED WITH THIS.”

Graph 12 shows a signifi cant increase in referrals to the Offi ce of Fair Trading in 2012-13. Solar issues accounted for 655 of these referrals, while there were 390 bulk hot water referrals, 41 bottled gas referrals and 88 other issues. Solar related issues such as changes to the solar bonus scheme also led to an increase in referrals to the Department of Energy and Water Supply.

To assist customers in directing their enquiries to the most appropriate agency, EWOQ establishedan online complaints portal – more information on this can be found on page 51.

Graph 12: Cases referred to other organisations

NOTES:

* Includes DEWS and the Queensland Water Commission.

** Other agencies are those which EWOQ does not have a Memorandum of Understanding, e.g. other industryombudsmen schemes.

47

SCHEME PARTICIPANT PERFORMANCE

Graph 13 and 14 show how complaints were dealt with for each scheme participant.

See Appendix 3 for a list of EWOQ’s scheme participants in 2012-13.

Graph 13: Energy retailers’ performance 2012-13

NOTES:

Companies who received less than 20 complaints have not been included in the graphs. The customer numbers refl ect the company’s small customer base in Queensland only. * EnergyAustralia was previously known as TRUenergy until 1 December 2012.*** TRUenergy was renamed as EnergyAustralia on 1 December 2012.

48

Tables 22, 23 and 24 show the complaint numbers in comparison to the scheme participants’ customer base in Queensland. This gives a better indication of a scheme participant’s performance than complaint numbers alone.

Table 22: Energy retailers’ performance 2012-13

Energy retailers Refer back RHL Investigation Total

Over 500,000 customers

Origin Energy Electricity Ltd 1,652 2,199 962 4,813


100,000 to 500,000 customers

AGL Sales(Queensland Electricity) Pty Ltd

490 545 240 1,275


50,000 to 100,000 customers

EnergyAustralia Pty Ltd* 408 455 200 1,063


Under 50,000 customers


Lumo Energy 138 180 59 377







Maranoa Regional Council 1 1 0 2



Diamond Energy Pty Ltd 1 0 0 1

Momentum Energy Pty Ltd 0 0 0 0

NOTES:

Companies who received less than 20 complaints have not been included in the graphs. The customer numbers refl ect the company’s small customer base in Queensland only. * EnergyAustralia was previously known as TRUenergy until 1 December 2012. ** TRUenergy was renamed as EnergyAustralia on 1 December 2012.

49

Graph 14: Energy distributors’ performance 2012-13

Table 23: Energy distributors’ performance 2012-13

Energy retailers Refer back RHL Investigation Total







Under 50,000 customers


Maraona Regional Council 0 0 0 0


NOTES:

Companies who received less than 20 complaints have not been included in the graphs. The customer numbers refl ect the company’s small customer base in Queensland only.

“… ALSO WANTED TO PASS ALONG HIS GRATITUDE FOR [THE] ASSISTANCE AND

SPEEDY RESOLUTION IN THE MATTER.”

50

Table 24: Water distributor-retailers’ performance 2012-13

Water distributor-retailers Refer back RHL Investigation Total


Queensland Urban Utilities 67 45 27 139

100,000 to 500,000 customers

Unitywater 95 74 23 192

Gold Coast City Council 35 18 17 70


Logan City Council 13 6 4 23

Redland City Council 8 2 2 12

NOTES:

Companies who received less than 20 complaints have not been included in the graphs. The customer numbers refl ectthe company’s small customer base in Queensland only.

Graph 15: Water distributor-retailers’ performance 2012-13

SCHEME PERFORMANCE

51

In line with our strategic priorities, EWOQ continued to raise consumer awareness of our services in 2012-13 and work collaboratively with our partners.

Promoting the schemeacross Queensland

EWOQ travelled throughout Queensland promoting our services.

Bring Your Bills

Bring Your Bills days, where people can bring their energy or water bills to EWOQ staff for assistance, were attended across the state. These were held in Bundaberg, Dalby, Emerald, Gayndah, Laidley, Logan, Mackay, Murgon, Nambour, Rockhampton and Toowoomba.

Presentations

EWOQ staff attended a number of community events and meetings to discuss our role. These included:

• Marlin Coast Senior’s Day, Cairns

• Multicultural Senior’s Week,African Community Foundation Australia

• Annual General Meeting,Queensland Council of the Ageing

• Ethnic Communities Council of Queensland

• Uniting Community Care

• Annual General Meeting, Queensland Country Women’s Association, Toowoomba

• Yarrabah Aboriginal Shire Council

• The Salvation Army, Sunshine Coast

• Welcome to Cairns Expo 2013,Defence Community Organisation

• Annual Conference, Financial Counsellors’ Association Queensland, Gold Coast

• Migrant Services Day, TAFE, Cairns

Offi cers also travelled to many regional Queensland centres to promote the Ombudsman scheme including Bundaberg, Bargara, Biloela, Moura, Theodore, Maryborough, Capricorn Coast, Mount Isa, Mt Morgan, Gayndah, Biggenden, Mundubbera, and Murgon.

Media

During the year, EWOQ distributed 14 media releases statewide and received 34 media mentions.

Highlights include interviews with WIN TV News and ABC local radio around the state.

Online

With an increasing number of people contacting EWOQ with complaints outside our jurisdiction, the Complaints Portal (www.energyandwatercomplaintsqld.com.au) guides customers through their issue and directs them to the organisation that can assist them best. EWOQ, Australian Energy Regulator, Australian Competition and Consumer Commission, Department of Energy and Water Supply, Offi ce of Fair Trading, Queensland Competition Authority and Queensland Ombudsman have all taken part in developing the website.

EWOQ’s website (www.EWOQ.com.au) has also seen increased activity in 2012-13 with 37,798 visits recorded, up eight per cent on last year.

PROMOTING THE SCHEME

52

Stakeholder engagement

In 2012-13, EWOQ continued to engage with our stakeholders through the following activities:

• regular meetings with our scheme participants to discuss operational issues

• participating in the Queensland Council of Social Service Energy Consumer Research Showcase

• attending the Australian Energy Regulator/ Australian Competition and Consumer Commission Customer Consultative Group meetings

• providing EWOQ material to State and Federal Members of Parliament

• taking part in the Minister for Energy and Water Supply’s Consumer and Retail Reference Group meetings

• entering into Memoranda of Understanding with the Department of Energy andWater Supply, Offi ce of Fair Trading, and the Queensland Ombudsman

• attending the Queensland Competition Authority Consumer Advisory Committee meetings

• participating in the Home Energy Saver Scheme teleconferences.

ANZOA and ANZEWON

EWOQ maintains its strong relationship with Australian and international ombudsmen networks; Australian and New Zealand Ombudsman Association (ANZOA), and Australia and New Zealand Energy and Water Ombudsman Network (ANZEWON).

The Energy and Water Ombudsman met with ANZEWON members in November 2012 and April 2013 and informally throughout the year.

EWOQ staff participated in monthly systemic issues meetings with ANZEWON and quarterly meetings with ANZOA interest groups to discuss common issues such as human resources, communication, policy and strategic development, and fi rst contact staff.

53

Since its establishment in 2007, EWOQ has provided dispute resolution services to over 73,500 Queenslanders. We were there to provide help when full retail competition was introduced in the energy market and now we also help water customers in south east Queensland.

Our staff

EWOQ has three teams who work under the leadership of the Energy and Water Ombudsman:

• Operations

o Led by John Jones, General Manager Operations.

o Three regional offi ces located in Brisbane, Rockhampton and Cairns.

o Responsible for the day-to-day dispute resolution and investigation of complaints and identifying systemic issues.

The South Queensland region encompasses the Gold Coast in the south, Gympie to the north, and west to the South Australian border.

The Central Queensland region covers the area north of Gympie to Mackay and west to the Northern Territory border.

The North Queensland region is north of Mackay (including the Torres Strait islands) to Mount Isa in the west.

• Corporate Services

o Led by Lyn Stevens, Manager Corporate Services.

o Provides the essential services vital for the day-to-day running of EWOQ, including fi nances, records management, information technology, human resource services and administration.

o Provides training and professionaldevelopment to staff.

o Provides secretarial support to the Advisory Council for the Energy and Water Ombudsman.

• Policy and Research

o Led by Ilona Cenefels, Manager Policy and Research.

o Responsible for leading and coordinating research, analysis and the development of strategic, operational and corporate policies.

o Responsible for marketing and communication.

o Manages Quality Assurance activity.

o Monitors, identifi es and reports on systemic issues.

Executive management

The Executive Management Group assists the Energy and Water Ombudsman in the stewardship of EWOQ and plays an important role in:

• setting and monitoring the strategic direction

• monitoring fi nancial and non-fi nancial performance

• promoting innovation, research, continuous improvement and quality client service

• ensuring the optimum use of human, fi nancial and information resources and infrastructure.

Its members are:

• Energy and Water Ombudsman (chair)

• General Manager Operations

• Manager Corporate Services.

The Manager, Policy and Research also attends Executive Management Group meetings asan observer.

OURORGANISATION

54

Corporate governance

A number of other committees oversee EWOQ’s corporate governance including:

Senior Management Group

Contributes to developing EWOQ’s strategic direction, provides business and operational direction in line with the strategic direction, and ensures good corporate governance as required by the Act.

Its members are:

• General Manager Operations (chair)

• Energy and Water Ombudsman

• Manager Corporate Services

• Manager Policy and Research

• Regional Managers of South Queensland, Central Queensland and North Queensland regions.

Audit and Risk Management Committee

Review the performance of audit services and reports, and progress with implementing strategies to address key risks. It reports directly to the Energy and Water Ombudsman.

Other responsibilities include:

• reviewing EWOQ’s Annual Audit Work Plan and subsequent amendments to ensure optimal cost-effective internal audit reports

• ensuring that appropriate follow-up action is taken in respect of internal audit reports

• promoting proper coordination with other internal and external review activities including, follow-up as necessary of the Auditor-General’s reports

• reviewing the scope and quality of work performed by audit services

• the appropriate monitoring of the impact of changes to the risk profi le of EWOQ.

The Committee conducts its activities in accordance with Queensland Treasury’s Audit Committee Guidelines.

Its members are:

• Regional Manager, South Queensland (chair)

• Independent external member with relevant experience


• Energy and Water Ombudsman (observer)

• Manager Corporate Services (observer)

• Queensland Audit Offi ce representative (observer)

• Corporate Administration Agency audit representative (observer).

Information Steering Committee

Provides strategic information management and advice to the Energy and Water Ombudsman by:

• endorsing information and communication technologies (ICT) policies and standards

• developing ICT strategic plans

• monitoring performance of corebusiness systems

• overseeing signifi cant ICT projects

• monitoring performance of shared service providers

• ensuring compliance with whole-of-government information technology policies and standards.

Its members are:

• Energy and Water Ombudsman (chair)


• Manager Corporate Services

• Regional Manager, Central Queensland

• Corporate Administration Agency (CAA) IT representative

• Senior Information TechnologyOffi cer (observer).

55

EWOQ workforce

The 41 full-time equivalent positions below comprised EWOQ’s structure as at 30 June 2013.

Executive Support Officer

Manager,Corporate Services

PrincipalFinanceOfficer

Senior Investigation

& Conciliation Officer (Based in

Rockhampton)


& Conciliation Officer (Part-time)


& Conciliation Officer (Part-time)

Senior Communication

& Marketing Officer

PrincipalTraining &

DevelopmentOfficer

Senior Information Technology

Officer

Regional ManagerNorth Queensland

Region

SeniorEnquiry

& Referral Officer

Investigation& Conciliation

Officer


Officer


Officer


Officer

Regional ManagerCentral Queensland

Region

Regional ManagerSouth Queensland

Region

Team Leader – Investigation

& Conciliation Officer


Officer


Officer


Officer


Officer

Team Leader – Investigation



Officer


Officer


Officer

Team Leader - Investigation



Officer


Officer


Officer


Officer

Team Leader - Investigation


Energy and WaterOmbudsman

General ManagerOperations

Enquiry& Referral

Officer

Enquiry& Referral

Officer

Enquiry& Referral

Officer

Manager,Policy and Research

Research and Systemic

Issues Officer

SeniorSystemsAnalyst

SeniorCorporate

Support Officer

CorporateSupportOfficer

EWOQ had 39 full-time equivalent staff employed on a permanent basis throughout Queensland. The percentage of permanent employees still employed at 30 June 2013 is 89.7 per cent and the percentage of permanent employees who have separated from EWOQ during 2012-13 is 10.3 per cent.

Whilst EWOQ has been fortunate in having a stable workforce, regular reviews of recruitment strategies and processes ensures new employees are appropriately skilled and able to perform the role to a high standard.

EWOQ did not make any offers of early retirement, redundancy or retrenchment during 2012-13,nor did we participate in any voluntary separation programs.

EWOQ offers a number of options that promote work-life balance for our employees. These include fl exible working hours, family leave provisions and fl exible return-to-work options for parents of young children.

56

Training and development

With the appointment of a Principal Training and Development Offi cer in October 2012, monthly training programs were implemented for all staff and, for the fi rst time, we offered leadership training to current managers and future leaders.

Our induction program was also restructured to provide consistent, comprehensive and holistic information about the organisation and the work we do. This has enabled new staff to quickly become effi cient and effective in their roles.

The Training and Development Offi cer has also mapped our business processes, linking procedures and the complaint management system, enabling more consistent practices across all offi ces.

Public sector ethics

New staff receive training during their induction period and the Code of Conduct for the QueenslandPublic Service is available on the intranet for all staff to access. In 2013-14, EWOQ will implement online training annually.

Staff also received training from the Offi ce of the Information Commissioner on privacy legislation.

In addition, the Queensland Ombudsmandelivered Good Decisions training to Investigation and Conciliation Offi cers on good record-keeping,making fair and lawful decisions, and communicatingdecisions effectively.

Consultancies and overseas travel

Information on consultants engaged by EWOQ, and overseas travel, are published through the Queensland Government’s Open Data website –visit qld.gov.au/data.

Staff survey

Given the often challenging work of receiving, investigating and resolving customer complaints, it was pleasing to see an increase in workplace morale and a decrease in organisational stress for EWOQ staff. Conducted in May 2013, the staff survey helps management understand the issues which are important to staff, and develop strategies to address them.

Offi ce relocation

In April 2013, the Brisbane offi ce relocated to53 Albert Street, Brisbane CBD. The new location is a good fi t for EWOQ as we are now co-located with other independent ombudsman schemes and accountability agencies. The new offi ce was offi cially opened by the Minister for Energy and Water Supply, Mark McArdle, on 14 May 2013.

Quality assurance

EWOQ conducts six quality assurance (QA) assessments annually to evaluate the quality of our case data and compliance with established business rules and procedures for dealing with complaints. For example, we conducted assessments on data entry and record-keeping by investigators, and recording of time spent on cases.

Following QA assessments this year, improvements have been made to EWOQ’s complaint categories and staff have received regular training and development.

57

A summary of EWOQ’s fi nancial performance in 2012-13 is noted below. Further details of our fi nancial performance can be found in the fi nancial statements following.

Operating result

EWOQ recorded an operating surplus of $0.025 million for the year. This surplus primarily relates to scheme unpaid interest fees not attributed to the operating expenses of the offi ce.

In 2012-13, EWOQ had a budget of$6.293 million approved.

Income – where the dollars came from

EWOQ operations are almost entirely funded through participation and user-pays fees levied on scheme participants. Our total revenue in 2012-13 was $5.484 million, of which $5.410 million was by way of fees. The balance of our income came from bank interest and unpaid fee interest.

Expenses – where the dollars were spent

During 2012-13, our total operating expenseswere $5.459 million. The most signifi cant area of expenditure was employee expenses (70 per cent). Supplies and services made up 29 per cent ofthe expenditure. A combination of audit feesand costs associated with our Advisory Council made up the balance of our total expenditurefor the year. EWOQ does not incur any signifi cant depreciation expenses.

Our equity – what we are worth

Equity (net worth) is calculated by what we own (total assets of $1.949 million) less what we owe (total liabilities of $1.712 million). As at 30 June 2013,EWOQ’s equity was $0.237 million, an increase of$0.025 million over the previous year. This is primarilyrelated to the operating surplus mentioned above.

Outlook for 2013-14

EWOQ has an approved operating budget of $6.419 million for 2013-14. EWOQ anticipates an increase in complaints which grow steadily each year.

Complaints are likely to increase in 2013-14 dueto a rise in electricity tariffs from 1 July 2013. This is expected to impact on credit and payment diffi culty issues for many customers.

As outlined in our 2013-14 budget guidelines, EWOQ’s reconciliation process in 2013-14 will only charge scheme participants for the actual costs of scheme operation.

FINANCIALSTATEMENTS 2012-13

58

CONTENTS

Statement of Comprehensive Income 59

Statement of Financial Position 60

Statement of Changes in Equity 61

Statement of Cash Flows 62

Notes To and Forming Part of the Financial Statements 63

Management Certifi cate 86

Independent Audit Report 87

GENERAL INFORMATION

These fi nancial statements cover the Offi ce of the Energy and Water Ombudsman (trading as Energy and Water Ombudsman Queensland). It has no controlled entities.

EWOQ is a free and independent dispute resolution service for Queensland’s energy consumers and water customers in South East Queensland. The Offi ce of the Energy and Water Ombudsman was established under the Energy and Water Ombudsman Act 2006.

The Offi ce of the Energy and Water Ombudsman is controlled by the State of Queensland which isthe ultimate parent.

The head offi ce and principal place of business of the Offi ce is: Level 16, 53 Albert Street, Brisbane

A description of the nature of Energy and Water Ombudsman Queensland’s operations and its principal activities is included in the notes to the fi nancial statements.

For information in relation to the Offi ce of the Energy and Water Ombudsman fi nancial statements please call 1800 662 837, email [email protected] or visit Energy and Water Ombudsman Queensland’s internet site at http://www.ewoq.com.au.

Amounts shown in these fi nancial statements may not add to the correct sub-totals or totals dueto rounding.

59

OFFICE OF THE ENERGY AND WATER OMBUDSMANSTATEMENT OF COMPREHENSIVE INCOMEFOR THE YEAR ENDED 30 JUNE 2013

60

OFFICE OF THE ENERGY AND WATER OMBUDSMANSTATEMENT OF FINANCIAL POSITIONFOR THE YEAR ENDED 30 JUNE 2013

61

OFFICE OF THE ENERGY AND WATER OMBUDSMANSTATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 30 JUNE 2013

62

OFFICE OF THE ENERGY AND WATER OMBUDSMANSTATEMENT OF CASH FLOWSFOR THE YEAR ENDED 30 JUNE 2013

63

OFFICE OF THE ENERGY AND WATER OMBUDSMANNOTES TO AND FORMING PART OF THEFINANCIAL STATEMENTS 2012-13

64


65


66


67


68


69


70


71


72


73


74


75


76


77


78


79


80


81


82


83


84


85


86

CERTIFICATE OF THE OFFICE OF THE ENERGY AND WATER OMBUDSMAN

87

INDEPENDENT AUDITOR’S REPORT

88

INDEPENDENT AUDITOR’S REPORT

89

APPENDIX 1GLOSSARY

Word Defi nition

BillingA case issue relating to high/disputed bills, delays, errors, estimated accounts, fees and charges, rebates/concessions, tariff, meters, refunds, etc.

CaseAny contact a customer has with EWOQ, i.e. general enquiry, refer back to supplier, Referral to Higher Level, investigation, or referral to other organisation.

ComplaintsAll cases that are billed to a scheme participant, i.e. refer back to supplier, Referral to Higher Level and investigation.

Credit A case issue relating to payment diffi culties, disconnection, bad debt etc.

Customer serviceA case issue relating to a scheme participant’s failure to inform/respond,provide incorrect advice, poor attitude, privacy issues etc.

EWOQ Energy and Water Ombudsman Queensland

General enquiry A customer has a query about electricity, gas or water that is not a complaint.

InvestigationEWOQ investigates a complaint and facilitates an outcome that is fair. Investigations can be level 1, 2 or 3 depending on the time taken to resolve the issue.

LandA case issue relating to the impact of network assets, network maintenance, vegetation management etc.

MarketingA case issue relating to conduct by energy marketers, misleading information, pressure, non-account holder signed up etc.

Provision A case issue relating to problems with new or existing connections etc.

Refer back to supplier

Customer has not contacted their supplier fi rst to try and resolve the issue and EWOQ refers the complaint back to the supplier. EWOQ cannot investigate a complaint unless the supplier has had an opportunity to resolve the issue.

Referral to Higher Level (RHL)

EWOQ can refer a customer’s complaint to a higher level of authority at their supplier before starting an investigation.

Referral to other organisations

If a case is outside EWOQ jurisdiction, we can refer it to an organisation we have a memorandum of understanding with. This includes the Queensland energy and water regulator, Offi ce of Fair Trading, Queensland Competition Authority, Queensland Ombudsman and the Australian Energy Regulator.

Scheme participant

Energy distributors and retailers operating in Queensland and water distributor-retailers in south east Queensland, which must join the EWOQ scheme.

Small customer

A small customer is a residential or small business customer who uses less than 100 megawatt hours of electricity per year, less than one terajoule of gas per year, and all residential water customers in south east queensland or small businesses who use less than 100 kilolitres of water per year.

SupplyA case issue relating to the quality of energy supply, damage/loss, outages, sewerage overfl ow etc.

TransferA case issue relating to errors in billing/transfer of account due to switching energy retailers, contract terms, delay in transfer, site ownership etc.

90

APPENDIX 2TABLES AND GRAPHS INDEXGraph 1: Closed electricity gas and water cases 9

Graph 2: Who contacted EWOQ 10

Graph 3: How customers contacted EWOQ 11

Graph 4: Closed complaints by primary issue 12

Graph 5: Closed electricity complaints by primary issue 2012-13 13

Graph 6: Closed gas complaints by primary issue 2012-13 27

Graph 7: Closed water complaints by primary issue 2012-13 33

Graph 8: Cases received and closed 2012-13 43

Graph 9: Cases received and closed yearby year 43

Graph 10: Average days to close cases by month 44

Graph 11: Closed case types 45

Graph 12: Cases referred to other organisations 46

Graph 13: Energy retailers’ performance 2012-13 47

Graph 14: Energy distributors’ performance 2012-13 49

Graph 15: Water distributor-retailers’performance 2012-13 50

Table 1: Who contacted EWOQ 10

Table 2: How customers contacted EWOQ 11

Table 3: Closed electricity complaintsby primary issue and type 2012-13 13

Table 4: Electricity investigationsby primary and secondary issue 14

Table 5: Closed electricity retailercomplaints by issue 16

Table 6: Closed electricity complaintsby retailer 20

Table 7: Closed electricity distributorcomplaints by issue 23

Table 8: Closed electricity complaintsby distributor 24

Table 9: Closed gas complaints by primaryissue and type 2012-13 27

Table 10: Closed gas retailer complaints by primary issue 28

Table 11: Closed gas complaints by retailer 29

Table 12: Closed gas distributor complaints by primary issue 30

Table 13: Closed gas complaints by distributor 30

Table 14: Closed water complaints by primary issue and case type 2012-13 33

Table 15: Closed water retailer complaintsby primary issue 34

Table 16: Closed water complaints by retailer 35

Table 17: Closed water distributor complaintsby primary issue 36

Table 18: Closed water complaintsby distributor 37

Table 19: Closed systemic issues 40

Table 20: Service standards 2012-13 42

Table 21: EWOQ performance targets –time taken to resolve complaints 45

Table 22: Energy retailers’ performance 2012-13 48

Table 23: Energy distributors’ performance 2012-13 49

Table 24: Water distributor-retailers’performance 2012-13 50

91

APPENDIX 3SCHEME PARTICIPANTS

Scheme participant Product type Service type

AGL Sales (Queensland Electricity) Pty Ltd Electricity Retailer

AGL Sales (Queensland) Pty Ltd Gas Retailer

Allgas Energy Pty Ltd Gas Distributor

Australian Power and Gas Pty Ltd Electricity and Gas Retailer

Click Energy Pty Ltd Electricity Retailer

Diamond Energy Pty Ltd* Electricity Retailer

Dodo Power & Gas Pty Ltd Electricity Retailer

ENERGEX Ltd Electricity Distributor

EnergyAustralia Pty Ltd** Electricity Retailer

Envestra Limited Gas Distributor

Ergon Energy Corporation Ltd Electricity Distributor

Ergon Energy Qld Pty Ltd Electricity Retailer

Essential Energy Electricity Distributor

Gold Coast City Council*** Water Distributor and Retailer

Logan City Council*** Water Distributor and Retailer

Lumo Energy Electricity Retailer

Maranoa Regional Council Gas Distributor and Retailer

Momentum Energy Pty Ltd Electricity Retailer

Origin Energy Electricity Ltd Electricity Retailer

Origin Energy Retail Ltd Gas Retailer

Powerdirect Pty Ltd Electricity Retailer

QEnergy Pty Ltd Electricity Retailer

Queensland Urban Utilities Water Distributor and Retailer

Redland City Council*** Water Distributor and Retailer

Sanctuary Energy Pty Ltd Electricity Retailer

Simply Energy^ Electricity Retailer

TRUenergy Pty Ltd+ Electricity Retailer

Unitywater Water Distributor and Retailer

Western Downs Regional Council Gas Distributor and Retailer

All licensed energy suppliers and water distributor-retailers in Queensland who supply smallcustomers must become scheme participants. EWOQ is fully funded by an industry levy imposedon the scheme participants.

NOTES:

* Joined 20 November 2012. ** EnergyAustralia was previously known as TRUenergy until 1 December 2012.*** Joined 1 July 2012. Gold Coast, Logan and Redland City Councils joined following the disbursement of Allconnex Water. ^ Joined 3 December 2012. + TRUenergy was renamed as EnergyAustralia on 1 December 2012.

92

APPENDIX 4COMPLIANCE CHECKLISTThe compliance checklist outlines the governance, performance, reporting and other specifi c requirements for EWOQ annual reports. It includes references to the relevant sections of the annual report where each disclosure has been addressed.

Summary of requirement Basis for requirementAnnual report

reference

Letter of compliance ARRs – section 8 2

Accessibility

Table of contents ARRs – section 10.1 1

Glossary 89

Public availability ARRs – section 10.2 Inside cover

Interpreter service statement

Queensland Government Language Services Policy

ARRs – section 10.3Inside cover

Copyright noticeCopyright Act 1968ARRs – section 10.4

Inside cover

General information

Introductory information ARRs – section 11.1 4

Agency role and main functions

ARRs – section 11.2 8, 53-58

Operating environment ARR – section 11.3 8

Non-fi nancial performance

Government objectives for the community

ARRs – section 12.1 8

Agency objectives and performance indicators


Agency service areas, service standards and other measures


Financial performanceSummary of fi nancial performance


93

Summary of requirement (cont.) Basis for requirementAnnual report

reference

Governance –management and structure

Organisational structure ARRs – section 14.1 55

Executive management ARRs – section 14.2 53

Public Sector Ethics Act 1994

Public Sector Ethics Act 1994 (section 23 and Schedule)ARRs – section 14.5

56

Governance – risk management and accountability

Risk management ARRs – section 15.1 54

Audit committee ARRs – section 15.3 54

Governance – human resources

Workforce planning, attraction and retention, and performance


Early retirement, redundancy and retrenchment

Directive No. 11/12 Early Retirement, Redundancy and Retrenchment ARRs – section 16.2

55

Open Data Open Data ARRS – section 17 56

Financial statements

Certifi cation of fi nancial statements

FAA – section 62FPMS – sections 42, 43 and 50 ARRs – section 18.1

86

Independent Auditor’s Report

FAA – section 62 FPMS – section 50 ARRs – section 18.2

87

NOTES:

FAA Financial Accountability Act 2009FPMS Financial and Performance Management Standard 2009ARRs Annual report requirements for Queensland Government agencies

www.EWOQ.com.au

ombudsman queensland. annual report

Documents