Annual Report 2018-19

Our objectives help ensure we continuously measure and improve how we operate. 

Here’s a summary of our achievements for 2018–19 and how they’ve helped promote the interests of Victorian consumers.

Objective 1 – We will ensure our regulatory regimes are designed to promote outcomes that are in the interests of consumers.

• Adopted sweeping new reforms to make electricity and gas companies responsible for helping customers get on to their best energy deals. The new rules came into effect from 1 July 2019.
• Changed the Energy Retail Code effective from 1 January 2020 to require energy retailers to have a family violence policy and improve account security and debt management practices. 
• Finalised rules applying to embedded electricity networks in September 2018, ensuring affected customers are provided with clear information and appropriate support if they are experiencing payment difficulties. 
• Explained our water pricing decisions to water businesses after releasing our final decisions in June 2018.
• Prepared our pricing guidance for three major water price reviews.
• Approved local council higher rate cap applications from Warrnambool City Council and Mansfield Shire Council.
• Expanded our risk-based approach to licensing and training for a new lighting activity within the Victorian Energy Upgrades program, while also streamlining certificate processing approvals. 
• Published our commentary on the Port of Melbourne’s 2018 tariff compliance statement in October 2018. We found the port’s estimated rate of return appeared high and needed further justification, while the description of contract revenues required further elaboration.

Completed our maximum fare review for unbooked commercial passenger services (such as taxis).

Objective 2 – We will create effective and efficient incentives for businesses to perform consistent with regulatory objectives.

• Issued penalties totalling almost $700,000 to energy retailers and electricity distributors for breaches of regulatory requirements.
• Released four reports on the Victorian energy market showing electricity disconnections have almost halved since reforms to protect consumers were introduced on 1 January 2019. 
• Evaluated family violence assistance implemented by water businesses. Reviewed water business customer charters, family violence policies and interviewed frontline service providers about customer outcomes.
• Commenced a review of our water customer service codes and the payment difficulties framework (currently in the energy sector) as it may apply to the water sector. 
• Achieved our Victorian Energy Upgrades target to approve 90 per cent of certificate batches on time.
• Issued a $3 million penalty to AGL, who failed to surrender enough certificates to meet its liability under the Victorian Energy Upgrades program.
• Ordered Wattly Pty Ltd to surrender almost 38,000 Victorian energy efficiency certificates after finding they had breached the rules of the Victorian Energy Upgrades program.

Released our first local government outcomes report in May 2019, reporting average annual growth in council rates has halved since rate capping was introduced in 2016–17.

Objective 3 – We will deliver high quality advice to government on issues related to economic regulation.

• Advised the Victorian Government on the Victorian Default Offer to apply from 1 July 2019.
• Provided advice to the Minister for Local Government in December 2018 on the average rate cap for local councils in 2019–20.
• Advised the Minister for Roads in December 2018 on recommended fee for accident towing and storage.
• Delivered a performance report on the Victorian domestic building insurance scheme in December 2018, finding insurers may have incurred some losses while project certificate numbers have increased. 

Objective 4 – We will be an organisation that promotes thought leadership, diversity and delivers great performance.

• Launched an information campaign to help Victorians learn about their new energy rights and navigate the energy market.
• Commissioned an independent review of our water pricing framework. The expert report found strong evidence the framework contributed significantly to delivering better outcomes for customers.
• Released our first water customer survey report in April 2019, showing results from thousands of customers on their water business’s performance. Our second report followed in June 2019.
• Organised eight plain English workshops for staff members, to ensure we maintain our culture of clear, concise writing. Open-ended responses in our reputation survey noted a significant and sustained improvement in our written communication.
• Refreshed the Economic and Technical Services Panel to increase the quality of suppliers with specialist knowledge relating to the industries we regulate.

Updated our risk management framework to ensure we have a risk-based approach to regulatory processes, enforcement, project management and achievement of our goals.

Objective 5 – We will be an organisation that creates and values effective and constructive relationships with stakeholders.

• Our 2019 reputation survey showed we improved in several areas including commission processes (up five per cent) and overall satisfaction (up three per cent).
• Held commission-wide training in International Association for Public Participation (IAP2) methodology and established an engagement champions group.
• Sent 11 Essential Update and 42 Essential Express enewsletters, with unique open rates averaging around 35 to 40 per cent, well above the industry benchmark.
• Increased our LinkedIn followers by 44 per cent and our Twitter followers by 71 per cent.
• Developed comprehensive engagement plans for local government, energy and Victorian Energy Upgrades.
• Moved Victorian Energy Upgrades content to the commission’s new website to increase accessibility for consumers.