Here we set out the framework for financial hardship support, access to concessions and the latest guidance from the Australian Energy Regulator (‘AER’) for supporting customers affected by COVID-19.
If customers are in financial difficulty, there is a risk that they will be unable to pay their energy bills and be disconnected from either their electricity or gas supply. A network of legislation, regulations, rules and policies exist to ensure that disconnection for non-payment is a last resort.
Consumer protections, including financial hardship rules, in Queensland, NSW, ACT, Tasmania and South Australia are contained in the ‘National Energy Customer Framework’ or ‘NECF’; a package of laws, regulations and rules which has been agreed to by the Governments of those jurisdictions. Victoria, Western Australian and the Northern Territory have not adopted NECF, so the rules are determined entirely by that state or territory. The key elements of the financial hardship framework in NECF are:
Energy concessions and rebates, directly reducing the amount that energy consumers have to pay, are often targeted at low income earners, pensioners and those with medical conditions. They are determined on a state and territory-basis. New South Wales provides considerable guidance on how concessions and rebates are to be applied in the NSW Social Programs for Energy Code.
You can find out about the energy concessions and rebates available in other states and territories by looking at the Government website for each state or territory.
Consumers should check with their retailer if they are eligible for a rebate or concession and they will be provided with an application form. If eligible, the retailer will apply the rebate or concession directly to the consumer’s energy bill. If not, make sure you are on best electricity plan to maximise your savings. Huglo Comparison Service can assist with this.
Eligibility for a customer hardship program is set out in the Hardship Policy of individual retailers. However, energy retailers must not use criteria which unreasonably exclude customers experiencing financial difficulty. In addition, customers should be informed why they have been refused entry to a hardship program, as well as providing the opportunity for that decision to be reviewed (see clauses 36-39 of the AER Hardship Policy Guideline available here).
Note that, in general, financial hardship protections only apply to customers that are supplied by authorised energy retailers. Some consumers in caravan parks, apartment buildings, retirement villages and other ‘embedded networks’, will not be eligible. However, these customers have similar (though not identical) protections under the exemption guideline that apply to ‘on-sellers’.
The AER released a statement of expectations setting out how it expects retailers to deal with the crisis. Their expectations include:
For information on rebates and concessions that are available during the COVID-19 crisis, consumers should check state and territory government websites.
A substantial framework of customer hardship and rebate and concession assistance is provided for energy consumers in Australia. The first step for access to this support is to contact the retailer for further information on what assistance they might be eligible for. If unsatisfied with the response they are getting, consumers have the right to make a complaint to the energy ombudsman in their state or territory.
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