Guideline on arrangements to assist low income consumers and vulnerable consumers (Guideline)

Paragraphs 18 to 19 of the 2004 GPS required the Commission to develop arrangements for the benefit of low income consumers.  These were published in November 2005.

In 2007 an updated Guideline on arrangements to assist low income and vulnerable consumers pdf [73 KB] was issued.  In January 2008 the Commission amended clause 23 of the Guideline in order to comply with the Human Rights Act 1993.

Paragraph 44 of the May 2009 GPS requires the Commission to monitor compliance with the guideline

• Guideline on arrangements to assist low income and vulnerable consumers - 30 January 2008 pdf [74 KB]

Requirements of the Guideline

The Guideline puts in place an enhanced process around disconnections for non payment, including a range of requirements that retailers should meet before a disconnection can take place.

The requirements include:

• regular communication to all consumers on their payment options
• arranging debt recovery in a time-frame that avoids an adverse credit situation for the retailer and minimises hardship for the consumer
• ensuring consumers enter into the most appropriate contracts for their needs
• providing consumers the opportunity to identify themselves as potentially vulnerable
• consultation with the Ministry of Social Development to assist vulnerable consumers unable to pay
• a visit to a consumer’s home before the final disconnection takes place.

Consultation on Proposed changes to the Guideline on arrangements to assist low income and vulnerable consumers

In February 2009, the Electricity Commission invited submissions on the consultation paper "Proposed changes to the Guideline on arrangements to assist low income and vulnerable consumers”. This paper highlighted issues in regard to the definition of medically dependent vulnerable consumer and who is responsible for informing electricity retailers of a consumer’s vulnerability.

• Proposed changes to the Guideline on arrangements to assist low income and vulnerable consumers
  

The closing date for submissions on the proposal was 12pm on 1 April 2009.

As a result of the submissions received, the Commission has worked with a large group of key stakeholders to further develop the Guideline. The Commission has particularly sought to address the issue of co-ordination between retailers and health practitioners in relation to medically dependent consumers.

As a result of this informal consultation, it is now proposed that the original Guideline be split into two guidelines:

• Guideline on arrangements to assist vulnerable consumers (VC Guideline); and
• Guideline on arrangements to assist medically dependent consumers (MDC Guideline).
  

The Commission received submissions throughout this informal consultation period. The latest submissions and Commission responses can be found here:

• Summary of Submissions pdf [321 KB]

The Commission now puts forward both guidelines for consultation:

• Consultation on the Guideline on arrangements to assist vulnerable consumers and the Guideline on arrangements to assist medically dependent consumers
  

The closing date for submissions is 5pm on Wednesday, 04 November 2009.

Archive

• 2005 Guideline and information regarding its development

• Guideline on arrangements to assist low income and vulnerable consumers - July 2007 pdf [73 KB] Please note that Clause 23 of this version of the Guideline has been updated in the January 2008 version.  If a retailer refused to provide a prepayment meter on the basis that person is a medically dependent vulnerable consumer, as required by the July 2007 version of clause 23, it would be likely to be in breach of the Human Rights Act 1993.

• Clause 23 was updated in January 2008 in order to comply with the Human Rights Act 1993. The updated clause provides that retailers may issue pre-payment meters to consumers dependent on electricity for critical medical support provided that the consumer has been fully informed of the risk of self-disconnection before installing the meter. This is so that the consumer can make a fully informed choice.