Changing demand: flexibility of energy practices in households with children (final report)

This report summarises the findings and recommendations from the ‘Changing Demand: Flexibility of energy practices in households with children’ research project funded by the Consumer Advocacy Panel. The project aimed to understand how households with children may be affected by electricity market reforms and demand management initiatives, such as cost-reflective pricing. The study involved 44 in-depth interviews, home tours and observations and a national survey with over 500 Australian households with children. Overview In households with children, many of the practices which use energy are coordinated and concentrated in the late afternoon and early evening on weekdays. Parents’ reliance on routine to manage the demands of family life limits the flexibility of energy use. With limited ability to shift practices to other times of the day, and priorities such as ‘doing what’s best for children’ and ‘using time efficiently’ taking precedence, households with children risk financial disadvantage under pricing strategies such as Time-of-Use (TOU) pricing. Financial insecurity is widespread in, but not limited to, low-income and sole parent households. Health concerns, thermally inefficient housing and appliances, housing tenure, safety and noise concerns, and widespread tariff confusion also restrict the capacity of households with children to manage energy use and costs. Many parents had little time, interest or trust to investigate tariff choice and available energy information. As such, increasing choice and complexity in electricity market offerings does not meet the needs of these households and TOU pricing is unlikely to achieve its aims with this household group. Family routines were more amenable to disruption on an occasional basis for non-financial reasons. For example, 85 per cent of survey respondents said they would reduce electricity use for a ‘peak alert’ in hot weather.  Acting for the ‘common good’ appealed to most parents, for example to prevent an electricity outage and/or be part of a community effort. Household activities considered inflexible for a hypothetical TOU tariff, such as home cooling, television and computer activities and cooking, were considered.  Recommendations from this study include reassessing the energy policy focus on price signals, tariff choice and information to address issues of household demand in Australia. Several alternatives are proposed such as peak alerts, and affordable access to public cooling during hot peak days.&nbsp

Changing demand: flexibility of energy practices in households with children (interim report)

This report investigates the practices that use energy in households with children to understand change and flexibility for demand management. The findings suggest that demand management and engagement activities need to go beyond individually motivating family households to save money, protect the environment, or make better choices in the electricity market. Overview Family households represent 25% of Australian households and face particular challenges as a result of rapid changes in the energy market and pricing structures. The Changing Demand: Flexibility of Energy Practices in Households with Children Project investigates how energy demand is changing in households with children and the likely implications of more cost-reflective network tariffs for this consumer group. This interim report discusses the findings from in-depth interviews conducted with 44 family households which will inform a national survey later in 2014. Children’s needs came first and daily routines enabled family households to manage the range of competing priorities and activities. Household activities in the late afternoon and early evening were highly coordinated and coincided with peak tariff period for Time-of-Use (TOU) electricity pricing. Family practices held meanings which are distinct from how these practices are valued and performed in other types of households. In particular, family health, children’s ongoing development, providing practical life skills, and enabling fun and socialisation were valued benefits. Energy use changed as children aged and went through various stages of life development and as new practice expectations emerged and changed with the introduction of new technologies, changing house design, increasing energy costs, and changing priorities. Information and communications technology (ICT) practices was the biggest area of concern and rapid change for family households and many parents felt they had little ‘control’ over their children’s usage. Parents’ were often conflicted about the potential health and wellbeing impacts of their children’s ICT use with the potential educational, development and communication functionalities these devices might provide. These competing priorities and concerns took precedence over any ICT-related energy concerns. Electricity usage was not a key consideration in other everyday activities or priorities despite rising electricity bills being a common concern or contributor to financial stress for family households. Most householders had low levels of energy literacy and engagement and felt unable to make appropriate choices about electricity tariffs and providers, and some were consciously disengaging from the current energy market focus on energy choices. Many were uncertain about their current electricity tariff. It was not practicable for most family households to change their routines to respond to a TOU tariff. Rapid change in family householders added to concerns about the financial impact of a TOU tariff on family households.  Family households were flexible and adaptable in response to the ‘normal’ disruptions of everyday family life. Most householders were willing to shift their routines in response to occasional alerts about critical peak demand. They described concerns for the ‘common good’ and the need to work together for social benefits or health and wellbeing of others (distinct from personal financial gain or environmental benefits). The findings suggest that current consumer demand management and engagement activities need to go beyond individually motivating family households to save money, protect the environment, or make better choices in the electricity market. Peak alerts, framed as a natural event or an ‘exceptional circumstance’ that benefits a common good and assists reliable and affordable access to electricity, is a potentially agreeable and productive strategy for engaging families to reduce energy use at times of peak demand

Disconnections case studies: understanding the householder experience

A dramatic increase in the number of Victorian households experiencing involuntary electricity and/or gas disconnections has prompted a review of disconnections by the Victorian government. This research into the direct and indirect costs that arise from disconnections was commissioned by the Consumer Action Law Centre and contributed to their \u27Heat or Eat\u27 report. Summary of key themes 1) Disconnections were part of complex family, health and financial circumstances. Disconnections did not occur in a vacuum: participants were typically experiencing numerous financial stresses at the time when they were disconnected, and these were often intertwined with complex crises. Domestic violence was often a contributing factor. 2) Inadequate retailer responses and practices. Participants\u27 reports indicated numerous deficiencies in retailer practices including demands for unreasonable upfront and ongoing payments, lack of information about services and concessions which could assist householders, and aggressive marketing practices.  3) Impact on mental health and wellbeing. Disconnections caused significant distress for most participants. Participants experienced feelings of shame, humiliation, fear and anxiety. The disconnection events compounded existing mental health issues and had a serious impact on participants’ wellbeing. 4) Financial impact. Disconnections resulted in various extra costs for participants that made it harder to get out of debt and avoid future payment defaults and disconnections. In addition to disconnection and reconnection fees, less obvious costs included: replacement of spoilt food; take-away meals for the family; use of public laundries or BBQs; phone calls; entry to public facilities to shower; and purchase of candles, blankets and other goods to manage in the absence of heating, lighting etc. 5) Impact on dependants. The disconnections often impacted children. Parents struggled to provide food and worried about the health and emotional impact on their children. 6) Financial counsellors and the Energy and Water Ombudsman Victoria. Financial counsellors and/or EWOV eventually assisted negotiations for participants and usually achieved outcomes that participants had not been able to. However, it took time to find this assistance because participants were unaware of these services or where to look for them