Download - Mark Henley - Uniting Care Australia - Unpacking the language and practice of consumer engagement
Collec&ons and Hardship Forum
Consumer Engagement (Focus Energy Industry)
Mark Henley [email protected]
Ph 0404 067 011
Context
What’s the Issue?
80
90
100
110
120
130
140
150
160
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Inde
x 19
90–9
1 =
100
Sydney Melbourne Brisbane Adelaide Hobart Canberra
Retail Electricity Price Index, 1991-‐2010
U&li&es Costs, SA
75
100
125
150
175
200
225
250
Inde
x
CPI Electricity
CPI Gas
CPI Water
CPI All Groups
Energy – Australia, by income decile
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
1 2 3 4 5 6 7 8 9 10
Housing + Energy, Aust, Income decile
0%
10%
20%
30%
40%
50%
60%
70%
1 2 3 4 5 6 7 8 9 10
Financial Stress, U.li.es
0
5
10
15
20
25
Q1 Q2 Q3 Q4 Q5
% Unable to pay electricity, gas, phone on &me, by income quin&le, 2002, 2006, 2010. Australia. GSS
2002 2006
2010
Why Consumer Engagement?
Later 2012, Na.onal Ac.vity Many Processes, many submissions, liTle sleep: • Energy White Paper • Produc.vity Commission • AEMC Rule change re Network Regula.on • Senate Inquiry • Review of Limited Merits Review • Power of Choice • COAG statement • Na.onal energy consumer advocacy body • Energy Efficiency programs (not Greenstart), HESS, LIEEP, etc. Maybe NESI
For Example • “the overarching objec0ves of the regulatory regime is the long term interests of customers. This objec0ve has lost its primacy as the main considera0on for regulatory & policy decisions. Its pre-‐eminence should be restored by giving consumers much more power in the regulatory process” (p 2) Produc0vity Commission
Key Themes
• Greater Consumer Engagement needed in regula&on
• Aspects of Market not working ‘in best long term interests of consumers’
• Major focus on Network regula&on
– New Rules – AER to use it’s powers more effec&vely
– Merits Review process needs change
So What is Consumer Engagement? From “Community Development”
• Community engagement is “people working collabora0vely, through inspired ac0on and learning, to create and realize bold visions for their common future.” (Tamarack, 2003)
• “Community engagement refers to arrangements for ci0zens and communi0es to par0cipate in the processes used to make good policy and to deliver on programs and services.” (Queensland Government)
Economics Consumer Sovereignty • Consumers influence the produc0on decisions of (efficient) firms by vo0ng with their spending.
• So consumer engagement here means that individual consumers know what they want, are fully informed about market choices, and are able to get what they want by ac0vely engaging in the market through their spending decisions.
From Law
• “Advocacy is the act of speaking on the behalf of or in support of another person, place, or thing”.
Advocacy and Consumer Engagement tend to be linked in Energy Advocacy (and Other) debates.
Public Par&cipa&on
• “public par0cipa0on is a process to make beQer decisions that incorporate the interests and concerns of all affected stakeholders and meet the needs of the decision-‐making body.”
Think about these 5 ‘aspects’
• Inform
• Consult • Involve • Collaborate • Empower
Synonyms • Partnership • Collabora&on • Mutuality • Empowerment • Interdependence
Consumer Engagement is TWO-‐WAY, between EQUALS
Benefits of Energy Consumer Engagement • Informed consumers; this is an essen.al condi.on for effec.vely compe..ve markets.
• Conflict resolu.on; between consumers and energy companies
• Drivers of market efficiency. – “Specifically, the Panel considers that a greater focus on the long-‐term interest of consumers opens up greater possibili.es for the development of stronger incen.ves for NSPs to be dynamically efficient.” (Limited Merits Review)
• Mee.ng regulatory requirements; • Promote consumer welfare;
Nature of Consumer Engagement
• Heterogeneous: (Not all consumers are the same or think the same)
• Itera.ve: Not everything will work • Messy: different views and complex issues means it will get “Messy”
• Trust Building (where this is ‘goodwill’) • Mul.-‐layered
Energy Consumer Engagement Hierarchy
What’s needed to make Consumer Engagement work?
• Goodwill on both sides • Small steps first, build trust • Learn as we go • Learning about each other • Making mistakes • Integra.ng Consumer Engagement into every aspect of business
• Consumer resourcing
What’s needed to make Consumer Engagement work?
TRUST, TRUST, TRUST
