Consumer experience and expectations
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1 Consumer experience and expectations Infrastructure Partnerships Australia- Infrastructure Australia Energy Symposium 3 May 2018 Rosemary Sinclair Chief Executive Officer
2 What I ll cover 1. Australian households and energy the last ten years 2. Action and reaction the policy and regulatory response 3. Glimpses of the individualised, optimised energy future 4. Summing up 2
3 1. Australian households and energy the last ten years
4 A (general) affordability crisis 4
5 Electricity trailing other services on VFM including the banks Source: Energy Consumer Sentiment Survey, November Value for money for key services (NSW) Electricity Gas Internet Mobile Phone Positive (7-10) Neutral (4-6) Negative (0-3) Insurance Banking Water 5
6 The price-service disconnect and low consumer confidence Source: Energy Consumer Sentiment Survey, November Confidence the energy market is working for me NSW VIC QLD WA SA TAS ACT SE QLD Positive (7-10) Neutral (4-6) Negative (0-3) 6
7 Making decisions about my energy Source: Energy Consumer Sentiment Survey, November Personal ability to make choices about energy products and services Confidence in information and tools Enough easily understood information is available Tools and assistance you need to manage energy use Positive (7-10) Neutral (4-6) Negative (0-3) Ability to get problem resolved 7
8 2. Action and reaction
9 Affordability: no silver bullet. 9
10 Abolishing LMR from the Federal Court to deliberative, aligned outcomes 10
11 New wholesale markets from opaque contracting to access and transparent pricing 11
12 Re-setting retail: from pass-through to outcomes Now, with the retailers, we know that millions of Australian families are paying more than they need for their electricity. They are on plans that have run out, discounted plans that have run out and they are now on a standard offer and paying too much for their electricity. They have got people that are on the wrong plans. Prime Minister, 9 August
13 The National Energy Guarantee: the end of uncertainty? 13
14 3. Glimpses of an individualised, optimised future
15 Manage my costs and give me control solar ECA Solar and Battery Research (May 2016) How much have the following factors contributed to your decision to install a solar electricity system? Reducing household energy bills Becoming less dependent on mains electricity Being able to get a feed-in-tariff for feeding Government grant schemes for installing Protecting the environment Adding to the house's resale value Recommendation by a friend or family The fact that your neighbours had it Strongly agree Mostly agree Mildly agree 15
16 Manage my costs and give me control batteries Factors contributing to you considering installing battery storage ECA Solar and Battery Research (May 2016) Becoming less dependent on mains electricity Reducing household electricity costs More efficient use of my solar panels Don't get a high enough feed-in tariff Protectng the environment Adding to the houses's resale value Being an early adopter of new technology Recommendation by a friend or family member The fact that your neighbours had it Strongly agree Mostly agree Mildly agree 16
17 I want to trade, share, gift I would prefer my six cents of power, sorry my units of power, which aren t six cents, to go into my community. I get six cents from [energy retailer], but if I get 25 cents because I gave it to you because you have fallen on hard times, well I m delighted. Attendee, ECA Regional Listening Tour April-June 2016
18
19 Finkel Blueprint: from coordinating and rewarding a SMALL number of BIG things to a BIG number of SMALL things 19
20 Consumers as Pariahs Pawns Partners 20
21 21
22 Connecting the tech with the consumer 22
23 Data banking first, energy next. 23
24 A new conversation about energy efficiency 24
25 4. Summing up
26 Five take-aways 1. Fee for no service the consumer just pays 2. Behavioural insights penalties and rewards 3. Smaller things and faster risk management 4. Digital and data making the impossible possible 5. From assets to services 26
27
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