Managing Collections and Hardship Programs in Utilities, Banks and Telecommunications 24 - 25 June 2011 Melbourne Marriott Gavin Du)y Manager Policy and Research St Vincent de Paul Society

Signing up the customer - Dirst encounter matters will cover Will cover from Case work perspecBve The energy spend Billing and collecBon cycles to assist consumers Timing - right informaBon at the right Bme Regulatory barriers in a dynamic market OpportuniBes / risks with smart meters

Price increases 2009-13

Disposable income by household group - September 2013 Household group September 2013 All households, eight capital ciBes $1676.80 All Households Australia $1559.99 Couple with three or more dependant children $1597.12 Renter $1379.72 Unemployed and student allowance $785.27

The AVERAGE utility spend-RPI All Households Renter Unemployed / Student Couple 3 Children Percent UBlity spend (note esBmates from 2009/10 HES) 4.5% 3.7% 6.8% 5.6% Dollar spend uBliBes $63.61 $47.11 $42.10 $88.75 Dollar spend Electricity $39 $35.43 $28.19 $55 Dollar spend Gas $10.08 $8.21 $6.65 $14.44 Av energy bill $588.96 $523.68 $418.08 $833.28 Bill as propor/on of weekly income 37.7% 37.9% 53.2% 52.2%

Right information at the right time Ge^ng though have you called the phone line ? Concessions and other assistance retailers add value ! concessions URGS energy eciency What else you oer energy literacy, conservaBon informaBon, hardship programs, tell them about it UP FRONT people dont like begging later And ge^ng them on the best rate makes no sense to have them on the highest rate / default rate would you like fries with that ! If they dont know .. they cant help themselves.

Billing and collection cycles to assist consumers Frequency of bills considered in conjuncBon with other bills (gas at the very least if duel fuel contract etc) why all ght for the same money. (bill smoothing e-bills etc) AddiBonal fees and charges (Late Fee, Processing fee, dishonoured fee etc) these when coupled with loss of POT add up to hundreds $ per annum - WHATS The real bill. Ge^ng the right informaBon at the right point in the collecBon cycle the right prompts eg disconnecBon warning - tell them how you can help them pay

Regulation challenges to the consumer experience RegulaBon is based on an industry customer service 15 years ago Barriers to the right informaBon being on bills (e- bills step around this in part) Third parBes and obligaBons confusion brand risk Privacy barrier - energy is a social good contracts are individual the person responsible for household budget may not be the name on the bill this big issue ! Smart meter - No regulatory guidance so if nasBes come to market the industry takes a hit

Opportunities / risks with smart meters things are changing QUICKLY IHD / portals Billing on demand Apps Taris design that beler align with consumer energy saving strategies More complexity and hence confusion AddiBonal fees and charges Third parBes NZ - enter own reading on web page or call centre (and make bill on that basis) retailer meter owner

IHD and Portals Powershop in your pocket Origin my home prole

Portals AGL - IQ Energy Australia e Wise

Managing Collections and Hardship Programs Gavin Du)y Manager policy and research St Vincent de Paul society gavind@svdp-vic.org.au 0439357129