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Print this page Utility Debt Spiral Project
The Utility Debt Spiral Project (the Melbourne Model in action) is a joint research project initiated by the Committee for Melbourne under the auspices of the UNGC Cities Programme.
The Project is based on the premise that water, electricity and gas bills can be a significant factor in personal debt spirals and the poverty trap.
Applying the Committee for Melbourne-developed Melbourne Model, the Project has harnessed the expertise and involvement of business, government, regulators, and civil society project partners to test this premise, and to examine and identify potential means of ameliorating the impact of utility bills as a direct cause of, or exacerbating factor in the debt spiral.
At a cross sector workshop held in Melbourne in 2003, stakeholders confirmed:
- the need for such a study
- the appropriateness of the experience in Victoria, Australia, as a basis for study
- the importance of ensuring that any recommendations were based on a comprehensive understanding of present circumstances.
Accordingly, a Steering Committee and Study Reference Group were established to examine and identify Victorian experiences in relation to:
- characteristics of people at risk
- characteristics of effective social and economic regulatory frameworks and policies to assist people at risk
- a range of ‘best practice’ solutions to address payment problems for disadvantaged utility customers.
Following the completion of the Study in October 2004, the Utility Debt Spiral Project has formed two sub-groups as follows:
1. Group A. Government Partnership
Participants agreed that the policy objectives should be that:
no person should be disconnected from an essential service solely due to an inability to pay; and
essential services should be available to all on fair and reasonable terms, and without compromising health and other welfare needs.
2. Group B. Industry and Community Partnership
Participants agreed that there was great value in utility retailers continuing to develop and enhance their strategies for working with customers in financial hardship.
The purpose of Group B is that representatives from industry, civil society and government continue to collaborate and develop industry hardship strategies.
Participating Organisations
Committee for Melbourne (project initiators, coordinators and facilitators)
State Government of Victoria
City of Melbourne
Energy and Water Ombudsman
Essential Services Commission (ESC)
Consumer Utilities Advocacy Centre (CUAC)
City West Water Ltd
South East Water
Yarra Valley Water
Origin Energy
Australian Gas and Light (AGL)
Powercor and Citipower
TXU
Saint Vincent de Paul (SVDP)
Good Shepherd
Kildonan Child and Family Services
Consumer Law Centre Victoria (CLCV)
Financial Consumer Rights Council
Victorian Council of Social Services (VCOSS)
Farrier Swier Consulting
Allen Consulting
Social Policy Research Centre (SPRC) - University of NSW
University of Melbourne
Allens Arthur Robinson
Waterfield Consulting
Links
www.un.org
www.unglobalcompact.org
www.citiesprogramme.org
Related Initiatives
UN Global Compact Cities Program
Documents
Utility Debt Spiral Project Study - A joint community, government and business initiative designed to explore the relationship between utility debt and poverty, and to identify social and regulatory frameworks and policies to assist people at risk.
The Committee for Melbourne has gathered a wide-ranging alliance including the City of Melbourne, NGOs, corporates and trade unions to discuss how to progress Melbourne’s vision and to determine what our engagement means to the city and the larger community.
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