10 July 2006
The Victorian Government has accepted 19 of 20 recommendations by a special inquiry, chaired by a Monash professor, into ways of helping impoverished gas and electricity consumers stay connected.
Professor John Nieuwenhuysen AM, Director of the Monash Institute for the Study of Global Movements, said the government was expected to introduce legislation soon to implement the recommendations of the inquiry into Energy Hardship Accounts.
"The two key points of the proposed new law will be that electricity and gas consumers who are genuinely unable to pay their bills cannot be disconnected, and energy and gas supply corporations will be required to introduce best practice regulations to deal with people experiencing energy financial hardship," he said.
Professor Nieuwenhuysen said the government would add $4.6 million over two years to existing funds used to assist consumers facing energy hardship, bringing its total expenditure in this area to $11.6 million.
"In addition, major energy retailers have agreed to spend a further $9.6 million over the next two years to augment their existing hardship alleviation programs," he said.
The inquiry committee included representatives from welfare groups and industry, and a reference group included parliamentarians, energy retailers and community representatives.
"The proposed legislation shows welcome policy acknowledgement that disconnecting those unable to pay is not the answer, since it only reinforces the cycle of poverty," Professor Nieuwenhuysen said.
This is the third state government inquiry chaired by Professor Nieuwenhuysen. The recommendations of two previous inquiries chaired by him have translated into complete statutes -- the 1988 Liquor Licensing Act and the 2004 Multicultural Victoria Act.
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