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Legislative Assembly for the ACT: 2002 Week 13 Hansard (19 November) . . Page.. 3743 ..

MR QUINLAN (continuing):

A decision that the transition is complete will be one that is balanced by social outcomes rather than being determined solely by economic imperatives. Three years after the introduction of the transitional period, the government will evaluate whether there is an ongoing need for transitional arrangements.

In taking the decision to introduce FRC, the government was aware that the costs directly associated with the introduction of FRC would need to be passed on to consumers, as indicated in the ICRC report. This is unavoidable. The ICRC will be asked to determine prudent costs ActewAGL will be allowed to recover for putting in place a system to enable the introduction of FRC. The ICRC identified upper estimates for these costs in the range of $1.92 to $3.25 per month to recover them over a period of three years.

I noticed somewhere that Mr Cornwell was saying that someone else was talking about $12. They may have been talking about $12 per bill, as opposed to $3 per month.

Mr Cornwell: Who knows?

MR QUINLAN: Well, it may have even been stated; I am not sure.

Mr Humphries: It was ActewAGL that made that.

MR QUINLAN: Did they say $3 per month or $12 per bill?

Mr Humphries: I thought it was $12 a month that they were saying.

MR QUINLAN: Well, that is something that I will certainly go out of my way to check. Of particular interest to the government is the way in which any adverse impact on the disadvantaged in the community may be mitigated. The government is committed to ensuring that appropriate support is in place for those consumers who may experience difficulties because of FRC. The government will increase the value of the electricity rebate proportionally to FRC costs.

Costs attributable to the rising price of the national energy market will be considered in the context of the review of community service obligations and concessions policy. The services of the Essential Services Consumer Council will also continue to be available to all electricity consumers. The council will have a dual role in that hardship caused by FRC will need to be addressed, but also problems caused by general market movements in electricity prices will need to be covered.

By 1 March 2003 the ICRC will have in place adequate consumer protection provisions in the form of a consumer protection code and a customer transfer code under the Utilities Act 2000. Consumers will also enjoy the protection of ACT consumer protection legislation, including provisions relating to the conduct of door-to-door sales and other market activities and cooling-off periods for contracts.

The government agrees with the ICRC report recommendation that a public awareness program should be undertaken. The government will oversee a public awareness campaign developed and conducted by the ICRC in conjunction with licensed utilities, the Essential Services Consumer Council and ACTCOSS. The public awareness campaign will commence in January of next year.

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