General Consumer Council for Northern Ireland
Consultation Paper
Draft Forward Energy Operational Plan
2005-2008
Contents
Page
Introduction 3
§ Background
§ Statutory Duties
§ What this document is all about
§ Consultation process
Council expenditure on energy 6
Draft Energy Operational Plan 7
Introduction
1. Background
The General Consumer Council for Northern Ireland (GCCNI) is a statutory body that aims to promote and safeguard the interests of all consumers in Northern Ireland.
Our job is to give consumers a voice - and to make sure that voice is heard by those who make decisions that affect consumers.
The Council:
· campaigns on behalf of consumers for the best possible standards of service and protection;
· undertakes research and data collection;
· gives advice, information and issues publications;
· deals with individual complaints about natural gas, electricity, coal, and. passenger transport
The Council has specific responsibilities in terms of energy and a team of 6 staff dedicated to representing the interests of energy consumers.
2. Statutory Duties
The Energy (NI) Order 2003 gave the Council extended powers and an expanded remit with the Council being given responsibility for representing the interests of electricity consumers in NI.
The Council’s statutory functions and duties are laid down in the Energy Order. The order gives the Council:
§ The function of
- making proposals or providing advice and information about consumer matters
- representing the views of consumers on such matters
- obtaining and keeping under review information about consumer issues, and the views of consumers on those matters
§ a duty to investigate and seek to resolve consumer complaints against companies about regulated matters
§ the function of giving information to Ministers, the NIAER, licence holders and any other body with a consumer interest, such as local authorities
§ a duty to publish information about:
- complaints made against energy suppliers, transporters, distributors both directly to the Council and also to the relevant licensee
§ a specific duty to “have regard” to the interests of
o individuals who are disabled or chronically sick
o individuals of pensionable age
o individuals with low incomes
o individuals residing in rural areas
§ a wide power to investigate any matter which appears to it to be a matter relating to the interests of consumers in relation to gas conveyed through pipes or electricity conveyed through distribution systems
§ powers to publish information where it thinks would be in the consumer interest
§ the requirement in each financial year to publish a forward work programme containing a general description of the projects that it plans to undertake the following year.
The Council has agreed a Memorandum of Understanding with the NIAER (Northern Ireland Authority for Energy Regulation) which will lead to an open, constructive and effective relationship between the two bodies, whilst respecting their different emphases.
The Energy Order requires the Council to publish a Forward Work Programme for each financial year, but before doing so it must consult on a draft of the Programme in time to allow it to consider any representations and comments made.
3. What this document is all about
This document is the Council’s second energy work programme under the new legislation and with the Council’s expanded responsibilities in electricity. The purpose of this consultation document is to give all the Council’s stakeholders the opportunity to contribute their ideas to our work programme. The Council recognises it cannot deliver its objectives in isolation. All of our aims and activities must be fully shared with our stakeholders and many of them delivered in partnership with them.
Resulting from this consultation process, the Council will develop and publish the final plan in March 2005.
4. Equality
The Council is committed to the fulfilment of the obligations in Section 75 of the Northern Ireland Act 1998 concerning the promotion of equality of opportunity between the categories listed and promoting good relations between persons of different religious belief, political opinion or racial group.
5. Consultation Process
Copies of this document can be requested in writing, by phone, or by e-mail and will be made available (on request) in large print, Braille, Audio Cassette and in minority languages. It can also be accessed on the internet on the Council’s website at www.gccni.org.uk
The Council would welcome the opportunity to discuss particular issues with any of the groups identified as representing the Section 75 categories in the NI Act 1998, and any other interested parties, and to attend meetings which organisations may arrange with their members to discuss the document.
§ Responses
Responses are invited on all aspects of the Council’s proposed work programme. It would be helpful when replying if you could say who you are, who your organisation represents (if appropriate) and who, if anyone, you have consulted about the paper before drawing up your submission.
The Council would welcome the opportunity to receive responses by meeting representatives of any of the groups identified as relevant to the Section 75 categories if they so prefer.
§ Timetable
The deadline for responses to this consultation process is 18 March 2005.
§ Contacting the Council
Enquiries about consultation arrangements and responses to this document can be made by mail, phone, fax or e-mail to:
Jo Stevenson, GCCNI, Elizabeth House, 116 Holywood Road, Belfast BT5 1NY
Tel: 028 9067 2488
Fax: 028 9065 7701
E-mail:
Expenditure on Energy
The Council’s projected expenditure on energy for 2005-2006 is £380,000. This is based on energy costs for 2004-2005. The cost of representing consumers in relation to gas and electricity is paid for by electricity and gas licence holders (£270,000), the remainder comes from DETI (£110,000).
The GCCNI’s Energy Work Programme
The Council’s work programme for 2005-2006 is set out in the attached table. Projects and initiatives that we envisage undertaking in 2005-3006 are identified with “Year 1” in the table.
Corporate Plan
This programme has been developed within the context of the Council’s draft Corporate Plan which will come into operation on 1 April 2005. The draft Corporate Plan has been the subject of a separate and extensive consultation process.
Four corporate themes have been identified:
1. Delivering consumer education, skills and information for all.
2. Championing and safeguarding the interests of the consumer, particularly the vulnerable.
3. Driving change to benefit consumers in the public and private sectors.
4. Enabling consumers to make responsible choices.
The relationship between individual projects and the above corporate themes are indicated also in this programme.
Objective / Code / Impact (what we will achieve) / Output (what we will do) / Priority / Year / Theme1. To make information more accessible to consumers / 1A / Consumers make more informed choices and are able to influence the market (prices and service levels). / Provide consumers and businesses with a range of information about prices, market choices and efficiency issues. / Key project / 1, 2 / 1(4)
1B / More consumers are aware of how the Council can help them directly and access our complaints handling service. / Promote Council's complaints role through a range of media including exhibitions and magazines. / Key project / 1, 2, 3 / 1, 2
1C / Consumers have relevant and accessible information relating to the issues that most affect them. / Provide practical information which is responsive and flexible, eg top tips made simple for keeping warm, making a complaint. Sept 05. / Key project / 1,2 / 4 (1, 2)
Objective / Code / Impact (what we will achieve) / Output (what we will do) / Priority / Year / Theme
1D / Consumers are able to make more informed choices about their oil installations in terms of safety and quality. / Promote the "Safe as Houses Campaign" to consumers. / Supporting project / 2 / 1 (4)
2. To promote financial inclusion and understanding / 2A / Improved debt management process. Unwarranted disconnections are reduced. / Campaign on findings of disconnection research and develop principles for suppliers. Summer 05. / Key project / 1 / 2, 3
3. To contribute to and develop the debate on responsible consumer choices / 3A / Increase understanding of responsible consumerism. / Raise awareness of the impact of consumer actions in energy markets through partnership working with Sustainability Advice Centres, Sustain NI and/or Energy Saving Trust; organise a sustainability symposium with Consumer Action Network; promote energy efficiency through complaints role and with companies. / Key project / 1,2 / 4, 1
Objective / Code / Impact (what we will achieve) / Output (what we will do) / Priority / Year / Theme
3B
/ Gain a definitive view of consumer opinion to help inform and influence policy debate. / Carry out an opinion survey on consumers' attitudes to sustainability issues. / Supporting project / 2 / 4, 34. To ensure consumers pay a fair price for goods and services / 4A / Consumers pay a fair price which reflects reasonable costs incurred. / Scrutinise price increases, taking into account evidence available and wider UK/Europe context and challenge where appropriate. / Key project / 1,2,3 / 2, 3 (4)
5. To work with businesses to enhance customer service / 5A / Complainants receive a financial remedy where appropriate. / Develop principles of financial remedy for appropriate markets in partnership with suppliers. Spring 05. / Key project / 1 / 3, 2
5B / Earlier resolution of complaints at the supplier end, potentially leading to reduced complaints to the Council. / Work with suppliers to improve complaints procedures by organising a complaint handling seminar; sampling and providing feedback on supplier received complaints. Summer/autumn 05. / Key project / 1 / 2, 3
Objective / Code / Impact (what we will achieve) / Output (what we will do) / Priority / Year / Theme
5C / Consumers have confidence in utilities billing; reduced billing complaints; consumers are in a position to make more informed choices. / Work with energywatch and BSI to develop billing standard that covers content, frequency and layout of bills. / Support project / 1 / 2, 3 (4)
6. To represent consumers effectively with decision-takers and policy-makers / 6A / Developing and expanding markets meet the needs of consumers, particularly the vulnerable. / Insert consumer perspective and agenda into debates on competition in energy markets and all-island/all-islands developments. / Key project / 1,2,3 / 2, 3 (4)
6B / Consumer voice is articulated in key debates. / Monitor markets and service providers to respond to key consumer issues of the day. Maintain a resource of key consumer statistics to inform GCC work and policy. Respond flexibly to key consultations (and review response criteria). Horizon scan for future issues. / Watching brief / 1,2,3 / 2, 3
Objective / Code / Impact (what we will achieve) / Output (what we will do) / Priority / Year / Theme
6C / Licences etc reflect best/latest practice and seek to provide adequate protection for consumers. / Work with regulatory authorities and Government to influence content of new utility licences. / Support project / 1,2,3 / 2, 3
6D / Influence policy-making process to the benefit of consumers and widen debate on consumer issues. / Represent the Council on a range of committees and forums incuding HECA, FREA management committee, HPA Fuel Poverty Group. / Watching brief / 1,2,3 / 2, 3
7. To protect vulnerable consumers of essential services / 7A / Enhanced services and greater protection for vulnerable consumers. / Track commitments of suppliers in Ofreg's Social Actions Plan on billing, payment methods and energy care schemes. / Key project / 1 / 2, 3
7B / Improved fuel poverty strategy. / Lobby for adequate resources and a legislative target to take people out of fuel poverty. Spring/Summer 05. / Key project / 1 / 2, 3 (4)
Objective / Code / Impact (what we will achieve) / Output (what we will do) / Priority / Year / Theme
8. To fulfill the Council's statutory obligations / 8A / Redress achieved for energy consumers. / Investigate electricity, natural gas and coal complaints to secure the best possible outcome. Enhance outreach to vulnerable consumers. Raise awareness of complaints role in the advice sector. / Legal Requirement / 1,2,3 / 2, 3
8B / Accountability. Clarity for stakeholders on the actions the Council will take including partnership working. / Produce a forward work programme in line with the Energy (NI) Order in consultation with stakeholders. / Legal Requirement / 1,2,3 / 2, 3
8C / Vulnerable consumers placed at centre of Council's energy work. / Ensure compliance with equality legislation and Government anti-poverty strategy. / Legal Requirement / 1,2,3 / 2, 3
8D / Consumer views are obtained and acted on. / Keep in touch with consumers via a consumer panel building on the Consumer Network and in accordance with the Council's communications strategy. / Support Project / 1,2,3 / 2 (3,1)
9. To communicate the Council's messages effectively to all stakeholders / 9A / Stakeholders receive and understand the Council's key messages. / Implement the Council's communications strategy. Monitor and update where appropriate. / Key project / 1,2,3 / 1 (2,3,4)
9B / Consumer debates are informed and influenced. Council is approached for views and keeps in touch with emerging consumer issues. / Initiate and lead the debate on key issues for the Council. Respond to and comment on topical consumer issues. / Support project / 1,2,3 / 1 (2,3,4)