Managing our Energy Transition
7 June 2019Rosemary Sinclair AMChief Executive Officer
Community dissatisfaction is well founded
2
Source: ACCC Retail Electricity Pricing InquiryPreliminary Report
Evolution of Energy
3
4
“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
Consumers driving change
ECA-UMR Solar and Battery Research (May 2016), p 12ECA-UMR Research
Now and next…manage my costs and give me control
6
60
32
34
27
26
17
6
3
24
30
28
27
24
22
11
5
8
20
18
20
22
27
16
10
0 10 20 30 40 50 60 70 80 90 100
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
Factors contributing to decisions to install solar PV
Strongly agree Mostly agree Mildly agree
Energy Consumer Sentiment Survey Dec 2018
Consumers are willing partners in transformation
7
4240
43
4945
53 52
42 42
2729
2427 27
21
2624
30
19 1821
14 1416
13
22
1413 12 1210
1511 10
12 13
0
10
20
30
40
50
60
NSW VIC QLD WA SA TAS ACT SEQ Business
Energy use reduction campaigns
Reduce usage without an incentive Reduce usage if incentivisedNot change usage Not sure
9
10
Our vision for the market
11
ECA promotes these three advocacy principles as the basis for better consumer outcomes.
Affordable
Optimised
Individualised
Better consumeroutcomes
Moving beyond the ‘trilemma’ – three parts to consumer focused outcomes
12
Industry Dimension Consumer Attribute
AffordableThe industry can only regain trust by addressing prices
SatisfiedPaying no more than they need to for the service they want
IndividualisedInformation and services to meet consumers where they are
EngagedConsumers can engage on their terms
OptimisedSystem decisions include consumers and their assets, rewards, prices and decisions
ConfidentThat the markets/systems are working in their interests
Complex Change
13
The Energy Charter … whole of system thinking to win the trust to transform
14
Source: The Energy Charter
Thank you