Power tariff take-up slow - ActewAGL blamed for not informing customers

Sunday Canberra Times
Sunday 31/5/2009 Page:8

THREE months after the introduction of the ACT's electricity feed-in tariff scheme, the most generous in the country, more than a third of Canberrans generating solar energy have yet to apply to ActewAGL to reap the benefits. On March 1 there were 579 Canberrans with solar, or photovoltaic, panels fitted to their houses, which had risen to 688 by Wednesday.

There are still 257 yet to apply for the feed-in tariff. At least one Canberran says the low take-up rate is because ActewAGL neglected to notify eligible customers in writing of the need to enter a new contract, before the first billing period under the scheme. The first Michael Glew knew about the need to enter into a new contract with ActewAGL was when information about the new feed-in tariff arrived with his latest electricity bill, which applied the higher, pre-March rate.

ActewAGL has sent feed-in tariff information and contracts to eligible customers with their bills since May 5. Mr Glew, who has been long-term unemployed and is in the process of establishing his own business, says this has cost him $345. "It's hard for my family," he said. Mr Glew already had a 20-year contract with ActewAGL on March 1, which he entered in October 2008 when he fitted solar, or photovoltaic, panels to his house.

Under the contract his electricity bill was, and still is, offset by about 7c per kW hour. Under the Electricity feed-in tariff Scheme, introduced by Energy Minister Simon Corbell on March 1, Mr Glew stands to be paid 50.05c per kW hour by ActewAGL - but only if he applies for a new contract. And the first billing period is off-limits for refunds.

"ActewAGL is playing an interesting game where they're interpreting the Act in a way that benefits them. They require people to apply to get the feed-in tariff, even if they're contracted to feed in power to the network already. I think it's ridiculous," Mr Glew said. ActewAGL head of retail Ivan Slayich said information about the scheme was provided to the public through the media. "Since the scheme was implemented, ActewAGL has also provided information on its website to complement the ACT Government's communication efforts," Mr Slavich said.

"Where required, ActewAGL has promptly provided customers with appropriated documentation to enable them to apply for the scheme." Mr Slavich said ActewAGL had no obligation on March 1 to notify customers eligible for the feed-in tariff of the arrangements. Refunds backdated to March 1 would be not be offered because the terms of the ACT feed-in tariff contract "clearly set out the requirements for eligibility and the commencement date for the premium rates".

Energy Minister Simon Corbell said there had been extensive community information campaigns conducted when the feed-in tariff was introduced. "It is my understanding that ActewAGL has since engaged in the process of sending letters to preexisting customers on solar contracts to inform them of their ability to sign up to the new tariff scheme," he said.