Foresighting the future for Customers + Communities

The future of the energy system - ECA Forum

Energising Australians Foresighting Forum 2023

Energy Consumers Australia’s flagship Foresighting Forum brought together the energy sector to discuss key issues affecting consumers with the theme of “Energising Australians”. Leaders, decision makers, advocates and thinkers from across and beyond the energy sector explored the future of the energy system, the role of consumers in it, and the challenges and opportunities it brings.

Our Executive Director, Sabiene Heindl and Director Innovation, Amy Abraham attended the Forum in Sydney on 15 and 16 February. These are their reflections.

The Challenge

Energy Consumers Australia states that the challenge is “The energy system is moving towards a smarter, low-carbon future energy system. We’re seeing a shift from a system primarily powered by a small number of large generators to one with many smaller ones, distributed across our communities. In addition, the uptake of renewable generation means there will be times when energy is abundant and times when it is scarce.

These changes are creating challenges for the grid, and there has been a clear focus on ensuring the power system continues to deliver reliable energy supplies.”

Reflections on the challenge

While there are fundamental challenges to the traditional Tesla Edison model of the energy system, there are also many opportunities for consumers, particularly around Consumer Energy Resources (CER): electric vehicles, batteries and solar, microgrids and community batteries. Speakers from the United Kingdom and United States shared on developments in their jurisdictions including energy as a service, Living Labs, the platform economy and ways to ensure a fairer future through collaboration with the health sector.

The Focus

Energy Consumers Australia set the focus on “What is less clear is the role that consumers will have in this future. Our current regulatory frameworks are not fit for purpose to support the active and constructive role we are counting on consumers to play to manage their energy use and generation to benefit themselves and the system.

We need to change our approach in two ways. First, by flipping how we view system problems and framing them from a consumer’s perspective, considering the barriers and constraints that they face. And second, by understanding the ways the system is, and isn’t, working for consumers.”

The future of the energy system

Increasingly, genuine consumer and community engagement is guiding the future of the energy sector because, “What got us here, isn’t going to get us there” (Marshall Goldsmith). The use of strategic conversation to listen to “voices for everyone” across First Nations, customers in vulnerable circumstances, small business and the agricultural sector is essential to the redesign of the sector to align with community expectations.

So, there is much to do and at the Energy Charter we are committed to doing it #BetterTogether. Only through collaborating within the sector and with other sectors will allow us to put humans at the centre of our energy system.

The Energy Charter turns 4!

Focus on energy transition as the Energy Charter turn 4

4 years of the Energy Charter

Four years ago the Energy Charter was launched in Sydney. Since that time the sector has changed considerably, with an accelerating focus on energy transition and ensuring that customers in vulnerable circumstances, particularly those impacted by COVID-19 and cost-of-living pressures, are better supported.

We have tracked ongoing signatory maturity over time through our annual disclosure process, and improvements are now evident across each of the five principles of the Energy Charter. While the commitment of each individual signatory has been essential, the Energy Charter has also played a key role inspiring customer centric culture change across the sector.

Why the Energy Charter exists

Our reason for existing is simple: we believe that energy customers rely on all of us. We all use energy every day. It lights our homes and powers our businesses. We’re all part of the same ecosystem, so working #BetterTogether is vital now and into the future.

The Energy Charter is a unique coalition of like-minded energy organisations with a shared purpose and passion for our customers and communities. 

Key takeaways from the Energy Charter journey

As we turn 4, here are four key takeaways from the Energy Charter journey so far.

1. Slow and steady culture change sticks

Rome wasn’t built in a day, and if it were, it probably wouldn’t be around today. Similarly, authentic culture change focused on customer centricity takes time and patience. By focusing on deepening insights, strengthening networks and bigger impact for customers and communities, the Energy Charter has created a unique platform for change across signatories. Of course, with so many different companies across different parts of the supply chain, there are bound to be different levels of maturity. We’re proud of the progress of signatories (as showcased in our annual Energy Charter disclosures) and the increasing stickiness of the sectors’ customer-centric focus.

2. Lead with lighthouses

Lighthouse examples inspire innovation. Rather than using sticks, we like to focus on carrots – and lean-in to what already works, is socialised and can be expanded across the energy sector. A good illustration is the pioneering Voices for Power #BetterTogether initiative led by the Sydney Alliance & Sydney Community Forum in collaboration with Energy Charter signatories (Ausgrid, Jemena and Endeavour Energy) which focuses on Culturally and Linguistically Diverse (CALD) community empowerment and engagement. Its 2023 expansion to South Australia, Western Australia, Northern Territory and Tasmania encompasses training and mentoring a cohort of “Community Energy Trainers” who will deliver culturally appropriate energy literacy workshops to diverse communities.

3. It’s about the humans (always)

Whether it’s ideating, incubating or accelerating #BetterTogether outcomes for customers and communities in the social licence, vulnerability or customer experience space, the humans matter. We are lucky enough to be led by CEO leaders with a strong and growing community of Energy Charter champions across Australia who are passionate about human-centred co-design and social outcomes. We also celebrate the fantastic partnerships we have with many consumer and community organisations through our Community and Consumer Outcomes Groups and End-User Consultative Group and our Collaborative Memorandums of Understanding with the Water Services Association of Australia, Thriving Communities Partnership and RE Alliance.

4. There’s always more to be done

Four years in, we are proud of what we have collectively achieved together to create a better energy future for all Australians. For us, the opportunity is to keep humans at the centre of the design and delivery of energy solutions and to navigate the changing needs of customers and communities as we transform to a cleaner energy future. There really is no other collaboration like the Energy Charter; and the work we do, together, has never been more important than it is today. And… there’s always more work to be done #BetterTogether!

Thank you to everyone who has been part of the Energy Charter journey so far.

 

Community of Practice – Compassion in Conflict

Compassion in Conflict
“Conflict is simply energy – the energy caused by a gap between what you want and what you are experiencing. This energy can be misused in ‘drama’ or harnessed to create something positive and useful.”

This is just one of many insights human-centered communication expert Ilona Vass shared at our final #BetterTogether Know Your Customers and Communities event for 2022.

With ‘conflict’ a common feature of infrastructure projects, it’s essential we build capability around compassionate, human-centered conflict strategies.

In the session, Ilona introduced several handy ideas to help us conceptualise, understand, and apply compassion in conflict situations.

Here’s our wrap up of the top tips from the session…

Tip 1 – Remember there is a purpose in conflict: to ‘create’.

We have conflict because, in the creation process, we bring a diversity of opinions and perspectives, which can lead to misunderstanding. Reminding ourselves that conflict serves a purpose is the first step in taking a more positive approach to managing it.

Tip 2 – Positive and negative energies

If we think about conflict as a gap in energy – we can then differentiate between the positive and negative energies being created. When energy is used as a weapon, the result is unhelpful ‘drama’, where those involved need to be right, justify their position and intention and stay emotionally detached.

When conflict is met with compassion, those involved connect at a human level, invite collaboration, listen with empathy, and aim to move forward with mutual agreement. Applying a compassionate approach is not only more likely to resolve the conflict, but helps to avoid ‘explosive’ responses and results in a much more positive experience for those involved. 

Tip 3 – The 4 C’s to work towards conflict with compassion

When approaching conflict with compassion, there’s four ‘C’s’ to work toward – ‘Courage’, ‘Clarity’, ‘Conversations’ and ‘Consistency’.

  1. Courage – we must be willing to move away from an emotionally detached position and address the emotions sitting at the heart of the problem.
  2. Clarity – it’s critical to stay clear on your message and avoid confusion by changing positions in ‘the heat of the moment’. By being transparent, we allow other party the opportunity understand our perspective and consider our suggestions for an agreeable solution.
  3. Conversation – we must make time to have the conversations that allow us to listen deeply and find mutually aggregable pathways forward. Resolutions cannot be found without a willingness to keep the conversation going.
  4. Consistency – the above C’s need to be applied consistently. Remaining clear, being consistent in our willingness to converse and staying courageous, is crucial to avoiding drama-fuelled, adversarial communication.

Tip 4 – Open communication.

This can be challenging, especially in situations where the other party is aggressive, however, open communication is a great tactic for keeping conversations on track toward a solution. In the frame of conflict communication, openness means being emotionally transparent and creating a safe space for others, including by maintaining the mindset that all parties are worthwhile. Empathising with other parties by sharing a similar personal experience, or showing that you resonate with their experience is one way to keep a conversation open.

It’s also essential to validate the other person’s emotions, including by asking questions around the feelings that are being felt and talking time explore them together. It can be helpful to actively disclose your own emotions also, for example, by letting the other person know how you are feeling about the conversation. Being open doesn’t mean being vulnerable in a way that makes you feel unsafe, or in a way that is not relevant to solving the specific problem at hand – it simply means being willing to connect with the other person on a human level

So, why does this matter?

Inevitability, infrastructure projects across the water and energy sector will involve conflict because of the creation process. As the energy sector embarks on a once-in-a-generation infrastructure build to transition to renewables, community and landholder engagement is increasingly in the spotlight. With hundreds of conversations occurring with impacted landowners, host communities and advocates every day, it’s essential that those responsible have the skills and know-how to manage conflict with compassion.

Positive conflict strategies not only reduce the inevitable costs of miscommunication and increase the likelihood of reaching a mutually agreed solutions faster, they also materially reduce stress and improve the experience for all involved.

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This event was held as part of The Energy Charter’s #BetterTogether Know Your Customers and Communities collaboration with Water Services Association of Australia (WSAA). This unique collaboration connects water and energy sector participants with a new guest speaker every month, to discuss customer and community engagement and facilitate a practical conversation on how to apply better practice in business.

Thanks to Ilona Vass for sharing her knowledge on this very important topic. To learn more about Ilona’s work on communication and positive conflict strategies visit: Dancing with the Dragons – Leadership and Team Communication Expert

#BetterTogether – Agricultural Landholders and Transmission: On the Ground Insights

How could electricity transmission infrastructure and agriculture co-exist and create shared value? That’s the question we’re seeking to answer through our social licence research exploring co-existence and shared value opportunities for landholders affected by transmission infrastructure.

As Australia moves towards a renewable energy future, a growing number of agricultural landholders are being approached to host electricity transmission infrastructure of their land.

Our energy businesses recognise that these transmission development projects, as well as the maintenance of existing infrastructure, may impact the lives and livelihoods of agricultural landholders.

They also understand that they have a responsibility to recognise and minimise these impacts and work towards agreeable outcomes for everyone.

What will this research be used for?

Our social licence research will be used to guide the development of practical guidelines for co-existence between electricity transmission infrastructure, agricultural landholders and their communities. Our goal is to develop guidelines that will:

  • Provide a plain English understanding of the practical impacts that energy transmission infrastructure may have on agricultural operations
  • Identify practical modifications and mitigations that could be considered, by both agricultural operators and transmission infrastructure businesses, to minimise potential impacts
  • Identify shared value opportunities, to dually support sustainable agricultural production and transmission planning and operation.

Who’s involved?

This initiative is the result industry collaboration between Transgrid, Powerlink, TasNetworks, ElectraNet and AusNet.

A key part of this collaboration has also been the formation of a Community Outcomes Group (COG). The purpose of the COG is to provide strategic insights into the agricultural sector to co-design the research and resulting guideline.

Our Landholder Community Outcomes Group includes representatives from: Ag Energy Taskforce, Australian Energy Infrastructure Commissioner, Bundaberg Canegrowers, National Farmers’ Federation, National Irrigators Council, RE-Alliance, Tasmanian Farmers and Graziers Association, Queensland Farmers’ Federation and Victorian Farmers Federation.

Our research partner is KPMG Australia.

What’s involved in the research?

The research component of this initiative involved a landholder survey, which was completed by 144 landowners across QLD, NSW, TAS, VIC and SA. Eighteen deep-dive interviews were also conducted with landholders committed to sharing their experiences on how transmission infrastructure has, or is expected to, impact them.

What have we learnt so far?

Agricultural landholders are, of course, not a homogenous group – there are many variables which affect how transmission impacts them and the way they use their land. This includes the type of farming activities that are being undertaken, the value an individual, or farming business, places on any particular feature of a property and the quality of the engagement that has taken place, just to name a few.

It is not surprising then, that when it comes to assessing impacts, our research validated 34 individual impacts across the areas of agricultural operations, wellbeing, financial and environmental.

Here’s some of the themes industry collaborators are working through with ag sector representatives:

  1. Visual impacts, financial loss and biosecurity risk were reported as the most significantly felt impacts for landholders.
  2. At community level, landholders reported that the most likely negative impacts relate to decreased property value, visual amenity, and neighbour relations.
  3. The impacts felt by landholders change over the planning, construction and operation phase of the infrastructure lifecycle, with many impacts appearing to lessen over time.
  4. Landholders identified a range of economic and social benefits for their wider communities, however, identified few benefits as infrastructure hosts.
  5. Landholders identified a range of mitigation measures that could help with co-existence, ranking ‘input into the planning process’ as the most important action transmission businesses can take. More local, community involvement was also rated as a key action to improve co-existence outcomes.
  6. While few benefits were reported, a range of shared value options were suggested. Broadly these related to improving energy affordability and reliability, further investment in rural infrastructure, and utilisation of transmission project resources (both during and after construction).

The better practice guidelines, which will utilise the finding of the research to offer a smorgasbord of options and opportunities to improve coexistence outcomes and realise shared value is expected to be released in Q1 2023.

More about this project

The Energy Charter is a unique coalition of like-minded energy organisations with a shared purpose and passion for customers. Our purpose is to empower one another across the energy supply chain to deliver better energy outcomes for customers and communities.

One of the ways this is achieved is through collaborative projects, called #BetterTogether initiatives, that focus on delivering tangible customer and community outcomes. This Landholder and Community Social Licence Research has been endorsed by the Energy Charter’s CEO Council as a Priority #BetterTogether initiative, recognising the importance of ensuring that no one is left behind in Australia’s transition to renewables.

#BetterTogether – Bringing the Customer Voice to Board

Customer Voice to Board
Top-level leadership putting customers at the centre of decision making is what Principle 1 of the Energy Charter is all about. But what does this look like in practice? What do customer-focused Boards need to make good decisions and how can you amplify the customer voice at Board?

We explored this topic at a recent #BetterTogerher Know Your Customers & Communities session with the Water Services Association of Australia (WSAA), interviewing Independent Chair of the Energy Charter End Users Consultative Group and experienced Board member Cath Smith.

Cath opened the session making the point that in an increasingly complex business and social environment, businesses that focus on the needs of customers are likely to outperform others.

“Boards are the cultural leaders of an organisation, and the chief stewards of risk and opportunity. It’s essential they have the know how to improve customer outcomes, not only for the customer, but as an intrinsic part of managing risk, delivering better commercial outcomes, and avoiding unnecessary political intervention and regulatory delays” Cath said.

When framing up the risk and opportunity with your Board, there are a range of ownership structures that might impact how you position the value of elevating the customer voice.

Cath explained, “For many businesses there is a regulatory requirement to engage with customers and it’s important that Boards are kept up to speed with expanding expectations in this area. 

“For privately-owned businesses, there is a direct commercial argument to be made – risks are better managed and commercial outcomes are more successful, when customers’ voices are brought up to the board.

“When governance structures and processes support the elevation of the customer voice, Boards have access to more diverse thinking, broader insights and can also better understand the lived experience and perceptions of their customers.”

Kate McCue, Manager Corporate Affairs at Endeavour Energy also joined the session to share her experience using the Energy Charter’s Customer Voice @ Board resource.

“We used the Customer Voice @ Board resource as tool to conduct a gap analysis with our Board. Recognising the extremely challenging experiences of our customers through COVID-19 and natural disasters, we agreed with our Board that we needed to focus-in on customer engagement and become an industry leader in this area” Kate said.

“We brought our Board, Executive, Customer Consultative Committee and subject matter experts together for a full day workshop to set ambitious targets together. These conversations were critical in building a shared understanding between our Board and stakeholders.

“We also had our Board open and close our online customer panel and observe customer conversations. This has been transformational for our Board in building a deep understanding of the issues that are front and centre for our customers.

“We now have a calendar in place to get our Board out to meet key customers regularly, and also include them in staff events so they can hear from staff that interact with our customers on a daily basis” she explianed.

Having participated in a range of customer engagement activities as a Board member, Cath agrees enabling customer interaction can be extremely valuable for Boards but does require careful planning.

“Be aware that people are likely to be very polite when meeting Board members. It’s important to create experiences where Board members will hear genuine views. This could, for example, include having board members sit in on customers calls.

“It’s also important to provide context and set expectations about what the purpose of the interaction is, in many cases it is to observe and listen, but not direct the action.

“It can be helpful to separate customer engagement from the Board decision-making process, holding events out-of-session, to give Board members the opportunity to gather insight and context without having to immediately apply that information to a decision.”

“Building in time for Board members to digest, analyse and consider the implications of their experience at a strategic level is critical” Cath said.

The Energy Charter Customer Voice @ Board resource features many more practical insights that support the energy sector to embrace the customer voice at a board level, across the areas of:

  1. Board composition and training
  2. Board meetings
  3. Decision-making
  4. Customer engagement
  5. Risk and assurance
  6. Customer advocacy structures

You can find this and other resources to help you embed the customer voice at Board here: