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Legislative Council - Fifty-Second Parliament, Second Session (52-2)
2012-02-14 Daily Xml
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ENERGY INDUSTRY OMBUDSMAN

The Hon. M. PARNELL (17:24): I seek leave to make a brief explanation before asking a question of the Leader of Government Business, representing the Minister for Mineral Resources and Energy, about the Energy Industry Ombudsman.

Leave granted.

The Hon. M. PARNELL: With rising electricity prices, the issue of disconnection of customers who cannot or will not pay their bills is an increasing concern. According to The Australian newspaper,disconnections have doubled in South Australia, with the paper reporting that 36 in every 1,000 households had their power cut off between June and September last year, compared with 16 in 1,000 in the same period in 2010.

When a householder feels that they have been unfairly cut off and they cannot resolve the issue directly with the power company, the dispute resolution option provided is through the Energy Industry Ombudsman of South Australia. Despite its name, members might be surprised to know that the Energy Industry Ombudsman is not an independent statutory body but a public company limited by guarantee, incorporated under the Corporations Act. Members of the scheme are the holders of licences issued under the Electricity Act or the Gas Act and include 20 energy supply companies including AGL, Origin and ETSA Utilities.

While I understand that the Energy Industry Ombudsman on the whole does a good job of resolving disputes, because it is in no-one's interest to have ongoing unresolved disputes, it does raise the question of what happens if a householder is not satisfied with the response that they receive from the Energy Industry Ombudsman.

I was recently contacted by a constituent who approached the Energy Industry Ombudsman after being disconnected by AGL in error. My constituent felt that the response to his issue by the ombudsman's office was totally inadequate, believing that it was neither proper, adequate nor independent. He initially believed that the ombudsman was a part of government and was disturbed to discover that the office was part owned by the utility company that he was complaining about. Despite this, there was no further body that he could approach or appeal to.

Members should also note that while other states have similar industry-owned ombudsman schemes as South Australia, the ACT, on the other hand, has a truly independent tribunal empowered to resolve utility complaints. My questions of the minister are:

1. What does the government think is the appropriate next step if someone is not satisfied with the response that they receive from the Energy Industry Ombudsman?

2. With increasing concerns about rising energy prices and the need for a truly independent dispute resolution process, has the government considered an independent statutory body to resolve these disputes and, if not, why not?

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for Tourism, Minister for the Status of Women) (17:26): I thank the honourable member for his most important questions concerning the Energy Industry Ombudsman. I will refer those questions to the minister for energy in another place and bring back a response.

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