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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2012-11-15 Daily Xml
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ELECTRICITY (EARLY TERMINATION) AMENDMENT BILL

Second Reading

Adjourned debate on second reading.

(Continued from 1 November 2012.)

Mr GRIFFITHS (Goyder) (11:03): I wish to make a brief contribution on this bill which was introduced by the member for MacKillop recently. There is no doubt in my mind that cost of living pressures is one of the key issues facing South Australians. I know that when I am in my electorate office it is most unusual if I do not receive a telephone call from a constituent, often in very challenging economic situations, who tells me that they just cannot afford to pay their electricity bill, and it is for that reason that I want to stand up and support the member for MacKillop for introducing this bill.

There are a variety of providers out there. We are all bombarded, seemingly, by either people who knock on our door or ring and they want to discuss power and electricity supply options with us. They tell us an interesting range of stories about what sort of discounts they can offer and all that sort of thing and how their kilowatt per hour price compares to other providers. It is somewhat of a challenge to check who your current provider is, work out what your price is, look at what these other options are and consider whether you are in a position to pay the bill in full and therefore qualify for a greater level of discount; are you interested in the direct debit option which gives you a greater level of discount again.

There is no doubt in my mind that people want to have the flexibility to be able to come to an agreement that suits them, even if it is only for a short time and then be able to go to a different provider. This bill, as I understand it, provides those options and I think it is one that the house would support. I hope that it does and I hope that it is prepared to vote on it soon.

The member for MacKillop has consulted widely. I know in the briefing paper that he prepared for the Liberal opposition he has talked about what the exit fees currently are. For AGL it is $75 within the first 12 months of a contract and $50 within the second 12 months; TRUenergy is $90 if it is within the first 12 months of a contract, $70 within the second 12 months and $50 in the third 12 months; for Origin it is $70 if you cancel at any time during the contract term after the cooling period; Simply Energy is $95 if you cancel within the first 12 months of a contract and $75 in the second 12 months; and Lumo Energy is $75 after the cooling-off period but before the expiry date of the contract. They are examples of how the fees vary, and while people with good intent sign up for contracts, they might then get a better offer, and because this bill is such a big part of their cost of living and their household expenses, they want to make sure they have got the best option available to them.

I think it is appropriate if the house looks at this with an open mind. It is important that where the parliament is in a position to provide some capacity to reduce the cost of living pressures on families, that it does so. Electricity is a human need for all of our homes and for all of our businesses and every day and in every way it is part of our lives, so if we can put this bill through and we give some flexibility to help the real people who are in need, that is a positive move.

From my own personal experience, in recent weeks, I have had some discussions with my energy supplier. I was on a 12-month contract. They told me that they sent me a letter in June advising that my discount period was going to expire in August. I had not activated an extension of the discount period, so the latest bill I received only had a very small discounted amount. I enquired with them but never got a response. After a week, I decided to ring them and spoke with an operator who was very good and who explained the situation to me and, indeed, it was my own fault because I had not activated the continuing discount. I am not sure why I had to—I would have thought they would have prompted it, at least as the fallback position—but I put into place a discount provision that I am happy with for the next 12 months.

If I can make that error, I am sure there are a lot of people out there who can make that error and who want to make sure they have some flexibility to change to the provider who they think best suits them, and if we put this bill through, that is going to give us a chance. I commend the member for MacKillop for bringing this matter to the house. I hope there are other members who speak in support of it and who can recount the stories and the concerns that have been put to them by their constituents, because this is a key issue facing South Australians.

Electricity price increases have been enormous in recent years. This bill is important because it gives some flexibility to home owners to try to reduce some costs and it is one that the chamber should support.

Debate adjourned on motion of Mrs Geraghty.

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