Things to consider when protecting vulnerable consumers
The success of reforms often depends on how they are accepted by consumers in the reforming energy market. Managing, or at least ameliorating reform impacts on vulnerable consumers can help reform objectives be realised.
There is no single solution to meeting the requirements of vulnerable consumers. Instead, there is a menu of options available to policymakers.
Measures targeted at vulnerable consumers are most effective when eligibility is clearly defined. A vulnerable consumer policy that is too broad is likely to be too costly to a government’s budget and will diminish some of the efficiency gains from cost reflective pricing of energy.
It is also important to distinguish between long-term and temporary vulnerability.
