Page 1215 - Week 05 - Wednesday, 24 June 1992
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Social Science Survey Exploratory Study of Economic Policy and Business Regulation, 93 per cent considered that electricity was an essential service. Domestic customers use electricity to power a range of appliances that are essential to healthy living - for hot water, cooking, refrigeration, heating and lighting. A 1977 study by the NCDC, the National Capital Development Commission, found that the amount of energy consumed in heating a house can be correlated to the coldness of the climate, which does not come as a great surprise to any of us.
Mr Connolly: They probably paid a consultant to tell us that.
MR MOORE: Yes, they did. It also found that the major part of domestic energy consumption in Australia is for heating, followed in equal parts by water heating and other energy needs such as cooling and lighting. In Canberra heating accounts for 60 per cent, with the other parts using about 20 per cent each. Some consumers are not aware of the cost of a service until an account arrives. It can be difficult to budget for accounts for these services, say, from previous experience. Because of climatic variations, experience is not necessarily a good guide for the cost of a service, particularly for winter heating. Electricity is an essential service. It should not be disconnected where that would cause substantial hardship. That is what this Bill is about.
ACTEW also has a statutory monopoly to supply water and sewerage services to consumers in the ACT. The provision of these services is vital to the well-being of the Canberra community. ACTEW adopts a different approach to the non-payment of water and sewerage rates. In such cases, domestic customers can apply to ACTEW for remission of water and sewerage charges under section 21C of the Rates and Land Rent (Relief) Act 1970. This section provides that where payments of rates could "cause undue hardship" payment can be deferred or remitted on the decision of ACTEW. The supply of water and sewerage services to consumers in the ACT is also an essential service.
What of reticulated gas? AGL reticulates natural gas to domestic customers in the ACT under an exclusive franchise agreement entered into between its parent company and the Commonwealth in 1980. The ACT has the capacity to make legislation that affects AGL's operation. AGL submits that gas is not an essential service as there are many alternative energy sources available - most notably, heating oil, LPG and wood. However, it is unlikely that appliances suitable for these alternatives are installed in the household. In 1990 there were 838 non-paying customers; 228 had their meter disconnected. A substantial proportion of non-paying customers paid once legal action was taken. The company enters into payment plans with customers who have difficulty in paying an account where they notify AGL and do not have a pattern of default. That is an issue that was raised by Mr Westende. Gas supplied to domestic consumers should be considered an essential service where a household relies upon it as a source of energy for key appliances - for example, for heating or food preparation.
What about telephones? Because Telecom is a Commonwealth statutory authority, there is doubt about the ACT's power to legislate for it. However, Telecom relies on Territory law and courts for collection of debts. Telecom may voluntarily submit to ACT jurisdiction as part of its practice of being a good
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