TransGrid’s Consumer Engagement Program

TransGrid has commenced a comprehensive consumer engagement program. One of the initial outcomes of this program is to ensure this proposal takes into consideration consumers’ issues and priorities. However, the consumer engagement program is being established as an ongoing dialogue between TransGrid and consumers that will inform TransGrid’s business plans into the future.

A range of approaches has been taken to consumer engagement to capture as representative a sample of views, understandings, priorities and concerns as possible. The program started by talking to consumers at a relatively high level as TransGrid developed a clearer view of consumers’ baseline understanding of TransGrid and the electricity industry.

From there, it moved progressively to specific topics to engage on the detail of the revenue reset program, with a focus on the topics of interest or priority for consumers.

This engagement drilled into key aspects of the revenue proposal to better understand what was most important from a consumer’s perspective, and sought to understand if TransGrid’s priorities and objectives were aligned with those of consumers. Understanding where consumers felt there was need for change in how TransGrid undertook its business was a priority of the consultation.

A summary of the consumer engagement activities TransGrid has undertaken by stakeholder group during the preparation of this proposal is as follows.

Consumer, Industry and Business Groups

TransGrid conducted two full-day workshops with representatives of consumer, industry and business groups. The first workshop in November 2013 sought opinions on key elements of the draft transitional revenue proposal. The second workshop in April 2014 explained how feedback had been taken into account and sought further feedback on this proposal. It included presentations from external experts on pricing and the rate of return.

Representatives were engaged by direct invitation and travel expenses were covered, where requested. TransGrid also held one-on-one meetings with some attendees between the workshops.

Further detail on the discussion is available in the summary of consultation in Appendix F.

36 AER, Final Decision: Powerlink Transmission Determination 2012/13 to 2016-17, April 2012, OFGEM, RIIO-T1:

Final Proposals for National Grid Electricity Transmission and National Grid Gas, 2012, p64 and OFGEM, Fact Sheet 67, 2006, p2.

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Large Energy Users

As with consumer, industry and business groups, TransGrid conducted two full-day workshops with large energy users. The first workshop in November 2013 sought opinions on key elements of the draft transitional revenue proposal. The second workshop in April 2014 explained how feedback had been taken into account and sought further feedback on this proposal. It included presentations from external experts on pricing and the rate of return. Representatives were engaged by direct invitation.

Further detail on the discussion is available in the summary of consultation in Appendix F.

Residential and Small Business Consumers

There were five key elements to engagement with residential and small business consumers:

1. Initial Consumer Roundtables

The program commenced with three-hour consumer roundtables in Parramatta and Dubbo in May and June 2013 to understand high level views of consumers in urban and rural areas. This work was undertaken by KJA, specialists in community and stakeholder relations. In total, 44 participants attended, recruited by a market research company to be representative of the demographics of electricity consumers.

Participants were educated about the electricity industry and TransGrid’s role, and asked how they would like to be involved in TransGrid’s expenditure forecasting activities. In addition, TransGrid discussed energy topics outlined by the AER to gauge participants’ views and opinions on capital expenditure investment, alternatives to network investment, price versus reliability, reliability standards and price setting.

The outcomes of these roundtables were used to inform later stages of development of the consumer program.

2. Deliberative Forums

TransGrid reflected on the content of the initial consumer roundtables and full-day workshops with consumer representatives and large energy users, and commissioned Newgate Research to conduct qualitative market research in the form of deliberative forums. The deliberative forums gathered feedback on key elements of the five year plan and explored knowledge and perceptions of TransGrid, issues the community is most interested in hearing about from TransGrid and preferred methods of communications and engagement.

This work comprised one three-hour focus group in Sydney’s CBD to test materials, followed by two four-hour forums in Parramatta and Wagga Wagga. In total, 51 people attended the two forums, recruited to be broadly representative of their communities. This methodology was used to allow consumers time to understand the TransGrid business and the issues it faces before being asked for their opinions on what are relatively complex issues.

Key outcomes of these forums are discussed in the report in Appendix G, and TransGrid’s response is discussed in Section 3.7.2.

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3. Consumer Website

In October 2013, TransGrid launched a consumer focused website to continue the thematic discussion with consumers, drawing on the insights taken from the workshops and forums. The website encourages consumers to “Have Your Say”

and comment on aspects of the revenue proposal and TransGrid’s operations and plans that are of interest or importance to them. The full content from the forums was placed on the website, alongside independently prepared reports on the forums, to invite a broader base of consumers into the conversation.

More information on TransGrid’s consumer program and what consumers have been saying is on the “Have Your Say” website at www.yoursaytransgrid.com.au.

4. Quantitative Survey

In order to quantify the results of the deliberative forums, TransGrid commissioned Newgate Research to conduct an online quantitative survey of 650 residential consumers in New South Wales and the Australian Capital Territory. The survey was conducted in March 2014. The survey included brief background information on TransGrid’s role, operations and plans and sought consumers’ feedback on specific aspects of its plans.

A summary of the results of the survey is included in the summary of consultation attached in Appendix F, and key results are discussed in Sections 3.7.2, 5.9 and 6.8.

5. Consumer Behaviour Survey

TransGrid commissioned Capitalis, a market research company, to undertake a survey on consumers’ energy consumption attitudes, current behaviour and future intentions. The survey, of more than 1,400 consumers, was undertaken in July 2013 to help interpret energy forecasts and inform future planning requirements.

The information gathered in the survey allowed TransGrid to better assess the need for contingent projects in the revenue proposal.

Feedback from this consultation has had a direct impact on TransGrid’s approach to network support solutions, consumer engagement and its pricing methodology. In addition, feedback on TransGrid’s newly developed community consultation approach to major capital projects, which involves consulting well in advance on project need, was strongly endorsed. This approach is being implemented in TransGrid’s Powering Sydney’s Future project, which is examining potential network needs to supply the Sydney CBD. Further information on this project is available on TransGrid’s website.

Valuable feedback has been received on the information consumers need to understand and have confidence in TransGrid’s capital expenditure plans. Improving TransGrid’s understanding of the perceptions that consumers hold in relation to the electricity industry, and the information they need to interpret the revenue proposal, will result in more accessible and transparent engagement on this revenue proposal.

Feedback from engagement will also be used to guide TransGrid’s approach to ongoing communications and engagement with its stakeholders.

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Improvements to Community Consultation Processes

Over the last two years, TransGrid has undertaken a number of measures to improve its consultation with the community and how it plans and delivers projects to communities.

In 2012 and 2013, TransGrid openly participated in the Review of Electricity Supply to the Mid North Coast conducted by Mr Robert Rollinson.³⁷ In response to this review and a changing environment, TransGrid strengthened its approach to community engagement and commissioned RPS Group, an independent consulting company, to carry out an external and public review of its project consultation practices.³⁸

The research associated with this internal review, conducted by Newgate Research, included:

• eight focus group discussions with residents, farmers and businesses within four project areas;

• 17 in-depth interviews with other stakeholders; and

• a telephone survey of 800 people (200 in each area).

The resulting report, TransGrid Review of Public Consultation, has assisted TransGrid to revise its approach to community and stakeholder engagement. TransGrid has committed to opening up its planning processes, engaging with the community from the onset of a project and consulting with the community over the full life cycle of a project. This change represents a significant shift in the way in which TransGrid communicates with its stakeholders by starting conversations with the community earlier, involving the community in decision making processes, and collaborating with them to develop effective, sustainable and holistic energy solutions.

TransGrid also publishes The Buzz e-newsletter which updates TransGrid’s customers and interested stakeholders on business operations, community investment and other matters.

Transmission Annual Planning Report

Each year, TransGrid publishes a Transmission Annual Planning Report (TAPR), a public document which provides clear and relevant information on TransGrid’s proposed network investment plans. A public forum is held each year to present the key features of the TAPR, and is well attended by a range of industry representatives.

While the main audience for the TAPR is interested parties such as market participants and industry representatives, TransGrid is currently reviewing how to best extend the role of the TAPR to inform consumers about its plans on an ongoing basis. TransGrid’s aim is to provide the public with a better understanding of the state’s high voltage transmission network and TransGrid’s role.