Tas Gas Retail Presented by: Kate Daley, Manager Tas Gas Retail

Residential spread of customers (roughly): 55% are in Hobart 20% are in Launceston 15% are in Devonport Remainder at Burnie, Longford, Wynyard, George Town and Ulverstone

Natural Gas Tasmania Residential Market Approx 12,000 residential connections in total (Vic has approx 1.8 million connections) 4% of Tasmanian households are connected In Tasmania, where natural gas is available 1 in 5 (20%) households are connected vs 4 in 5 (80%) in Vic & NSW In Tasmanian the average household consumption is 33 GJ which in 2015 would derive a total annual cost of $1,146.34 (variable + fixed fee + GST) Light regulation of natural gas in Tasmania (no price regulation) TASCOSS pushing for greater regulation for ‘hardship’

Regulation Wikipedia defines Regulation as: An attempt to produce outcomes which might not otherwise occur, produce or prevent outcomes in different places to what might otherwise occur, or produce or prevent outcomes in different timescales than would otherwise occur.

Hardship vs Customer Service ESC Energy Hardship Inquiry Draft Report (Sept 2015) Hardship policies not effective “The focus must be on assisting customers, not labelling them” Early intervention, treating all customers with respect and equally

Disconnection is a Last Resort Disconnections per year approximately 3% of total connections of which 50% are reconnected with the same retailer (unable to reconcile reconnections with an alternate retailer) Disconnection - 22 days in Tas vs 13 days in Vic Disconnection only occurs when a customer fails to work with us to manage their account and disconnection - the customer is given multiple opportunities Brand new gas connections risk managed through credit checks Early intervention - customers moving into a property with gas or reconnecting with poor credit history are set up with payment arrangements as part of the condition of their connection Customers are offered several payment options to assist them to self manage + referral to support service providers Tas approach mostly meets or exceeds the standards of NECF

Cost of Natural Gas Natural gas is cheaper per unit, however, appliance efficiency needs consideration Fixed Fee consideration for households

Gas vs Electricity Hot water Heating Gas hot water is cheaper to run than traditional hot water cylinder. With natural gas you only heat the hot water you use, where as an electrical hot water cylinder stores and heats 24/7. However, gas hot water never runs out so there is some risk of longer showers! Installation costs may affect overall NPV In most cases, natural gas heating will be more expensive to run than an electrical heat pump or wood fire. Natural gas heating is instant, can add health benefits such as reducing the formation of condensation.

Regulation & Hardship Meeting the standard requirements of NECF without regulation Tas approach consistent with recommendations of ESC draft report Retail competition offers incentives for retailers to offer superior customer service to maintain customers Extension of the EHF a plus We will continue work with CSOs Fully compliant + complaints year on year decreasing Ombudsman – TGR is consistently found to do the right thing by the Retail Code and our Customer Charter Striving to improve our customer service

Questions?