The Electricity Authority Te Mana Hiko (Authority) has confirmed its implementation approach for the Consumer Care Obligations (Obligations), which are due to be published in early December.

The two key protections - prohibiting retailers from disconnecting customers for non-payment they know to be medically dependent on electricity and requiring any fees or charges to be reasonable - will apply from 1 January 2025. The remaining obligations will take effect from 1 April 2025 to ensure retailers have the necessary operational changes in place to implement the new requirements for their customers.

"The two key protections taking effect on 1 January are crucial for vulnerable whānau and community, and it has been our priority to see that they are effective as soon as practicable," says Airihi Mahuika, General Manager, Legal, Monitoring and Compliance.

"Most retailers requested a transition period of at least six months to implement the Obligations. While we have declined this, we have provided additional time for those obligations that trigger operational changes for retailers," says Mahuika.

Under the current voluntary Consumer Care Guidelines (Guidelines), retailers can either align by adopting the recommended actions, or by taking ‘alternative actions’ that achieve the intended purpose and outcomes. Under the new Obligations, alternative actions will no longer be available and retailers’ current self-reporting on alignment will be replaced with compliance reporting.

The Authority’s decision to introduce an implementation period for parts of the new Obligations reflects almost unanimous feedback that full compliance from 1 January may compromise customer outcomes, and that retailers’ self-reporting to-date indicates high levels of alignment with the current Guidelines.

The three-month implementation period will enable retailers to make any operational adjustments necessary to successfully implement the new requirements for their customers. In the interim, retailers will continue to align with the remaining Guidelines until all protections become obligatory from 1 April 2025.

"We’ve received great engagement from both retailers and consumers throughout our process to mandate the Guidelines and it’s pleasing that support for the new Obligations has remained high amongst retailers. Ensuring retailers are ready to deliver on the Obligations will result in higher quality servicing of the protections they provide for consumers," says Mahuika.

"Ultimately, that’s what sits at the core of our decision to allow an implementation period for some requirements. Consumers need to be able to trust that their power company can provide high quality servicing of the Obligations once they are mandated. Introducing the Obligations remains a top priority for the Authority and all protections will be in place before next winter. We look forward to publishing the Obligations in December."

The Authority introduced new Guidelines in 2021 to replace the earlier guidelines on arrangements for retailers to assist medically dependent and vulnerable consumers. While regular reviews indicate high levels of alignment with the Guidelines, the Authority is now amending the Electricity Industry Participation Code 2010 to mandate the Guidelines as Obligations for retailers and distributors.

Notes:

The Electricity Authority is an independent Crown Entity with the main statutory objective to promote competition in, reliable supply by, and the efficient operation of, the electricity industry for the long-term benefit of consumers. The additional objective of the Authority is to protect the interests of domestic consumers and small business consumers in relation to the supply of electricity to those consumers.

© Scoop Media