Change Makers

In 1998, The Stegley Foundation made a grant of $26,000 to the Financial and Consumer Rights Council to undertake a consumer audit of electricity, gas and water industry reforms in Victoria.

The study utilised data from 215 clients of financial counselling services across the state to explore the impact of reform and privatisation of energy utilities on low-income people. The research revealed many cases of unacceptable debt collection practices by companies in the utility industries.

It also highlighted the inadequacy of the State Government’s consumer protection mechanisms and the inaccessibility of the consumer complaint systems.

Findings from this research were outlined in a report. A four page summary was widely distributed to the media, companies within the energy industry, politicians, relevant state and federal government departments, and community and consumer organisations.

The outcomes?

People were able to give voice – their experiences were heard and some reliable documentation was gathered as to what’s actually happening on the ground.

The project also started a process of engagement between consumer advocates, energy industry and government regulators. Significantly, at least one industry (Water) began reviewing its hardship policies, based on increased understanding of the difference between consumers’ unwillingness to pay and inability to pay.

As a result of this and other reports and subsequent action by consumer advocacy groups, in 2006 the State Government legislated to require all energy retailers to develop best-practice hardship policies.

Power to the people!