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		CAB Cautiously Applauds Electricity Inquiry's Recommendations 13 June 2000

The New Zealand Association of Citizens Advice Bureaux welcomes any changes at the retail end of the electricity industry that result in benefits to consumers, especially low-income households and beneficiaries. Rachael Le Mesurier, Chief Executive of the New Zealand Association of Citizens Advice Bureaux, was commenting on recommendations proposed by the Ministerial Inquiry into the Electricity Industry released today by Pete Hodgson. Ms Le Mesurier says there are four key recommendations made by the Inquiry that could benefit electricity consumers: The balance between fixed and variable charges Limiting the proportion of the fixed charge on electricity bills will certainly benefit smaller families, retired couples and single person households. It will also mean that bigger families and households have higher power bills. The Government must address this by encouraging energy conservation and efficiency through improved insulation and more efficient household appliances. Industry to establish an Electricity Ombudsman While Citizens Advice Bureau welcomes the recommendation for an industry-established electricity ombudsman, we feel there is a need for a utilities ombudsman to cover water and gas, as well as electricity. "We endorse the recommendation to give an ombudsman the power to levy fines against the industry and grant compensation to consumers disadvantaged by retailers' actions. Government to impose on retail companies an obligation to supply pre-payment meters at reasonable cost Pre-payment meters can offer some consumers an immediate choice between competing retailers. We would like clarification on which consumers will be able to access this choice and how they would be protected against self-disconnection due to cashflow problems. We would also like to see low income households being the first beneficiaries of this technology, with appropriate protection against self-disconnection. Our recommendation is that Government and local councils should install pre-payment meters in state and council houses and flats. Consumer Guarantees Act amended to include electricity The Consumer Guarantees Act provides protections for consumers for a range of goods and services. Water and gas supply, as well as retail electricity, should be covered by the Consumer Guarantees Act. In 1999, CAB workers around New Zealand answered 2000 enquiries from people having difficulties with electricity retailers. Many were complaints regarding call-centres and lack of access through local retailers' offices. Some elderly people, for example, have experienced difficulty navigating telephone call-centres with touch-tone phones. This is an increasing problem as many large companies have moved towards providing their customer service solely through call-centres. Ms Le Mesurier says the CAB encourages the industry to move quickly to implement these recommendations. "They represent significant benefits for low income consumers. The Government should regulate if the industry does not voluntarily make changes to benefit consumers."           Information | Contact Us | Volunteering | Social Policy | About Us