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Arrangements to assist medically dependent and vulnerable consumers

Guidelines on arrangements to assist vulnerable consumers (VC Guideline) and to assist medically dependent consumers (MDC Guideline)

Paragraphs 18 to 19 of the 2004 GPS required the Commission to develop arrangements for the benefit of low income consumers.  These were first published in November 2005, substantially reviewed in July 2007, updated in 2008 and further reviewed during 2009.  As a result of the 2009 review, the Commission split the arrangements into two guidelines:

 

Requirements of the Guidelines

The Guidelines put 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.

Paragraph 44 of the May 2009 GPS requires the Commission to monitor compliance with the Guidelines.  The annual review usually takes place in the October – December period.  Ad hoc issues notified to the Commission are followed up as and when required. 

Background

2009 review

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.

As a result of the submissions received, the Commission worked with a large group of key stakeholders to further develop the Guideline during the course of 2009. The Commission has particularly sought to address the issue of co-ordination between retailers and health practitioners in relation to medically dependent consumers.  The Commission held a forum in July 2009 to talk through some of these issues and engaged with stakeholders in an informal way about the proposals.  The Commission received submissions throughout this informal consultation period and summarised the responses

As a result of that engagement, the Commission split the original Guideline into two guidelines and proposed both for consultation in October 2009

The final Guidelines were published in March 2010. 

2007 review

In 2007, an updated Guideline on arrangements to assist low income and vulnerable consumers pdf [73 KB] was issued.  (However, Clause 23 of this version of the Guideline was 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.)

In January 2008, the Commission amended clause 23 of the Guideline 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 the consumer can make a fully informed choice.

2005 Guideline

Last update on 02 June 2010 02:44 PM