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Utilities hardship

Utilities hardship. Getting better outcomes for vulnerable households. The Victorian Council of Social Service. Peak body of the social and community sector in Victoria Advocates for the development of a sustainable, fair and equitable society

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Utilities hardship

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  1. Utilities hardship Getting better outcomes for vulnerable households

  2. The Victorian Councilof Social Service • Peak body of the social and community sector in Victoria • Advocates for the development of a sustainable, fair and equitable society • Focus on the needs of low income and otherwise disadvantaged Victorians

  3. VCOSS’s utilities priorities • Protecting vulnerable households from fuel poverty • Pursuing environmental sustainability in energy and water while protecting vulnerable households from price impacts • Representing the interests of consumers in the developing competitive market

  4. The energy industry • Privately-owned distributors carry energy from the source to homes and businesses via a network of wires/pipes • Privately-owned retailers bill customers and purchase the energy used by their customers from the distributors • Retailers compete against each other, offering various deals to attract customers • Customers have a contract with their retailer for the supply of energy

  5. The water industry • Government-owned water authorities each service a specific geographic area • In Melbourne there are three water retailers and a bulk water company that services the three retailers • They don’t compete directly with each other, but compete ‘by comparison’

  6. Fuel poverty When people are can’t afford theenergy they need to live, and they may: • Under-consume with health and social welfare implications • Be disconnected from supply • Prioritise utility payments over other essentials such as food • Accumulate debt This is fuel poverty!!

  7. Causes of fuel poverty Combination of inadequate income andlimited capacity to control costs due to: • Poor quality housing stock • Inefficient household appliances • Life cycle stages • Tariff structures • Special needs Women, children, people with disabilitiesand illnesses, and the elderly are affected most of all

  8. Some statistics… • 30-40% of Victorian households claim concessions • 28% live in rural and regional areas • 25% are tenants • Housing costs have more than doubled in the last 15 years • A quarter of low-income households have trouble paying at least one bill a year

  9. Protecting consumers • Regulatory framework • Standing offer — regulated tariff, standard terms and conditions • Consumer protection measures • Specific rules around hardship and disconnection • Concessions framework • Subsidising price for low-income and special needs households • Some assistance programs

  10. Underlying principles • Electricity, gas and water are essential services • No-one should be disconnected solely due to capacity to pay

  11. Basic entitlements • Flexible payment • Payment arrangements • Affordable payment plans • Security of supply • Help with energy over-consumption • Treated with respect

  12. Things are getting better

  13. What we’d like to see • For over-consumption… • Retro-fitting program • Appliance exchange for low-income households • Efficiency/quality standards for rental properties

  14. What we’d like to see • For pricing… • Better tariff structure to improve affordability and the incentive to conserve • Better subsidies for especially vulnerable households • Plus… • Continued improvement in the way retailers deal with hardship

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