The Essential Services Commission is reminding Victorians that energy retailers cannot automatically require customers to completely pay off debts before reconnecting essential energy services.
Early data indicates that 1,383 residential electricity disconnections occurred in March 2026 due to non-payment, continuing a run of elevated monthly disconnections. Forty per cent of residential customers disconnected for non-payment in March had previously accessed assistance to help manage their bills.
In Victoria, energy consumers have specific protections when facing financial hardship. Retailers are mandated to assist consumers struggling to pay their bills in a way that is fair and reasonable for their individual circumstances.
However, the commission has become aware of concerning reports that some customers disconnected for non-payment are being asked to pay large amounts of arrears before their energy is restored.
Customers who are asked to pay substantial debts before reconnection should ask their energy retailer about affordable payment arrangements and hardship support. They may not need to pay the full amount upfront to have their energy restored.
The commission has contacted retailers to provide guidance and to ask them to review their processes to ensure they are acting fairly and considering all the circumstances of a customer when considering reconnection requests and payment arrangements.
Customers are encouraged to contact the Energy and Water Ombudsman Victoria if they require further assistance after speaking to their retailer.
Quotes attributable to Essential Services Commission Chairperson and Commissioner Gerard Brody
“We want to be clear about the intent of Victoria’s energy rules so there’s no room for misinterpretation – disconnection is a last resort and reconnection processes should focus on helping customers reestablish workable arrangements, rather than creating additional barriers.”
“We know that when people are struggling to pay their energy bills, they are often making very difficult trade-offs. Approaches that support realistic repayment arrangements are more likely to lead to long-term positive outcomes for both customers and retailers.”
Quotes attributable to Kane Johnson, Senior Financial Counsellor on the National Debt Helpline, Consumer Action Law Centre
“We often see energy providers using disconnection, or the threat of disconnection, as a debt collection tool. Energy debts are one of the most common issues discussed with financial counsellors on the National Debt Helpline. Our data shows threats of disconnection are increasing, which is alarming and indicates retailers may not be complying with their obligations.”
“We urge energy providers to comply with all their obligations under the Energy Retail Code of Practice before disconnection is even considered. This includes setting customers up on affordable payment plans, putting payments on hold for short periods or applying for government grants for eligible consumers.”
Background
Retailers must work with customers, having consideration to the amount of debt owing and ongoing energy use and must provide customers with agency to put forward affordable payment proposals. Retailers must accept a customer’s payment proposal if it:
- includes regular, equal payments made at intervals of up to one month
- clears arrears within two years of the first payment
- covers both ongoing energy use and debt repayment
- is based on a reasonable estimate of the customer’s expected energy use over the next 12 months.
