Page 2651 - Week 07 - Tuesday, 5 June 2012
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they did so from what appears to only be a fundamental lack of understanding of how this legislation operates. The government’s energy efficiency cost-of-living improvement legislation saves consumers money, reduces electricity costs, improves greenhouse gas abatement, and is completely compatible with the NECF legislation that we are adopting today.
The NECF legislation also provides for model contracts between retailers and customers and distributors and customers. These include strong, robust protections, including restrictions on disconnecting customers, overcharging, security deposits, payment plans and processes for handling customer disputes.
For the first time in the ACT, gas customers will also have the benefit of having a direct deemed connection contract with gas distributors, a practice that has existed in the electricity industry for an extended period. Previously, gas distributors discharged their obligation through retailers. A direct relationship with consumers will enable distributors to respond speedily to consumer concerns and needs without going through an intermediary.
NECF provides a far more comprehensive consumer protection model than that which currently exists in the ACT and is therefore a significant improvement for ACT energy customers.
There are also strict requirements on energy marketers to disclose all necessary information to small customers. This includes information on early termination penalties and the right to complain about the marketing activity. Customers will have the right to withdraw, with a cooling-off period of up to 10 business days for market retail contracts upon acceptance of an offer by a retailer. These requirements will protect customers from misleading marketing practices and complement existing regulations in this area.
Further, the ombudsman role of the ACT Civil and Administrative Tribunal has been preserved. The tribunal will remain responsible for hearing and resolving energy-related disputes in the ACT.
The NECF also establishes a small claims compensation regime for customers. Under this scheme, small customers will be able to make small claims for compensation by directly contacting and communicating with the distributors, but without having to undertake a potentially costly and time-consuming legal process. If the customer is not satisfied with the outcome of the small claims process, they will still be able to lodge a claim with the ACAT. The government will progressively implement the small claims compensation scheme over 2012-13 once the framework is established through the NECF.
Finally, I turn to the issue of transitional arrangements. The bill provides for the smooth transition to the new national framework to avoid disruption to energy consumers and commercial relationships between businesses. Customers on the ACT standard contracts will be automatically transferred onto the corresponding standard retail contract under the national energy retail law. Customers on negotiated contracts will retain those contracts. In either case, customers will face no disruption and will
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