In its latest Electricity Inquiry Report, the ACCC recommends extending ombudsman jurisdictions so customers can access external dispute resolution for new energy products and services, such as solar panels, home batteries and virtual power plants.
EWOV has received an increasing number of complaints about new energy products and services. In many cases, some or all of the complaint falls outside our current jurisdiction.
One example of the impact of this gap in consumer protection is seen with Liam*. He discovered years after installing solar that he had never received solar export credits. He was giving energy back to the grid for nothing.
He’d tried to resolve the issue with his solar installer, with his distributor and with his electricity retailer – to no avail. So, he came to EWOV for assistance.
While we were able to help resolve part of his dispute with the distributor, we couldn’t investigate the whole matter because some parts are outside of our jurisdiction.
To recognise the distributor's role in Liam’s financial loss, we found it was fair and reasonable for the distributor to provide $250 in compensation. We considered that the solar installer and the retailer also contributed to his loss, however the solar installer was outside of EWOV’s jurisdiction so we couldn’t help with this part of the complaint.
Liam’s story highlights the gaps in consumer protection and breakdowns in the customer journey – which can erode consumer confidence in the market.
We also see other issues, such as consumers receiving the wrong advice about products and services they purchase or how they will operate. We hear about delays and other challenges that arise when they’re dissatisfied with a service and try to switch away. Ombudsman schemes in other jurisdictions also shared with the ACCC the common complaints they’ve been seeing.
Drawing on the insights provided by EWOV and other schemes across Australia, the ACCC has found that reforms are needed. Why? We need to strengthen consumer protections, reduce the risk of consumer harm, build customer trust and support greater uptake of new energy products and services. We need to lower costs and progress the energy transition.
How we achieve this is through a number of changes – including extending energy ombudsman jurisdiction. The ACCC also calls for a new, mandatory code for battery sellers wanting to access the Cheaper Home Batteries Program. It recommends creating an overarching consumer duty, that has specific protections for new energy services.
EWOV and our energy ombudsman colleagues have long advocated for these reforms. We want consistent protections for all consumers, regardless of who their provider is.
A shift towards a principles-based regulatory approach and an overarching consumer duty would futureproof the framework. This would limit the need to create carefully targeted rules as new risks and gaps in the regulatory framework emerge. As the energy market continues to evolve, consumer protection must evolve with it.
Home batteries store excess energy generated by your solar panels for you to use when you need it, which reduces the need to rely on the grid and risk of blackouts.
A virtual power plant (VPP) is network of battery systems installed at homes and businesses that are digitally coordinated by a central control software system run by the VPP operator (an electricity retailer). The operator can access the stored energy of the batteries during periods of peak demand to supply the grid.