energy consumers australia forum 20 february 2019 gerard ... · energy consumers australia forum....
TRANSCRIPT
Energy Consumers Australia Forum20 February 2019
Gerard Brody, CEOEthical implications of data: exacerbating inequality?
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OUR VISION:a just marketplace,
where people have power and business plays fair
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The “go to” solution of policy-makers
Problem: poor market outcomes
Cause: lack of engagement?
Solution: consumer engagement strategies
Consumer engagement
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BUT ENGAGEMENT IS DIFFICULT:Only a proportion of people will
engage, and providers can use data to distinguish between customer groups
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The aim is to increase customer value from this
passive group via increased margin.
- Retailer strategy document
“
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Result: different market outcomes between active & disengaged consumers
• Loyalty penalty can confuse or mislead
• Harmful distributional effects
• Increased average prices
ABILITY TO DISCRIMINATE:Optimisation. Personalisation. Redlining.
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Reduce reliance on consumer engagement
Default settings
Price controls
Re-thinking vulnerability
Fair conduct obligations
Competition/market power issues
Better policy solutions
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