Managing our Energy Transition 7 June 2019 Rosemary Sinclair AM - PowerPoint PPT Presentation

Managing our Energy Transition 7 June 2019 Rosemary Sinclair AM Chief Executive Officer

Community dissatisfaction is well founded Source: ACCC Retail Electricity Pricing Inquiry Preliminary Report 2

Evolution of Energy 3

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Consumers driving change “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

Now and next…manage my costs and give me control Factors contributing to decisions to install solar PV 0 10 20 30 40 50 60 70 80 90 100 ECA-UMR Solar and Battery Reducing household energy bills 60 24 8 Research (May 2016), p 12 Becoming less dependent on mains electricity 32 30 20 ECA-UMR Research Being able to get a feed-in-tariff for feeding … 34 28 18 Government grant schemes for installing… 27 27 20 Protecting the environment 26 24 22 Adding to the house's resale value 17 22 27 Recommendation by a friend or family 6 11 16 The fact that your neighbours had it 3 5 10 Strongly agree Mostly agree Mildly agree 6

Consumers are willing partners in transformation Energy use reduction campaigns 60 53 52 49 50 45 Energy Consumer 43 42 42 42 40 Sentiment Survey 40 Dec 2018 30 29 30 27 27 27 26 24 24 22 21 21 19 18 20 16 15 14 14 14 13 13 13 12 12 12 11 10 10 10 0 NSW VIC QLD WA SA TAS ACT SEQ Business Reduce usage without an incentive Reduce usage if incentivised Not change usage Not sure 7

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Our vision for the market Affordable ECA promotes these three advocacy principles as the basis for better consumer outcomes. Better consumer Optimised outcomes Individualised 11

Moving beyond the ‘trilemma’ – three parts to consumer focused outcomes Industry Dimension Consumer Attribute Affordable Satisfied The industry can only regain trust by Paying no more than they need to for the addressing prices service they want Individualised Engaged Information and services to meet Consumers can engage on their terms consumers where they are Optimised Confident System decisions include consumers and That the markets/systems are working in their assets, rewards, prices and decisions their interests 12

Complex Change 13

The Energy Charter … whole of system thinking to win the trust to transform Source: The Energy Charter 14

Thank you