Victorians struggling to pay their energy bills are now better protected under new rules to help customers stay connected and get the best energy price.
From today, the minimum debt a consumer can be disconnected for increases from $300 to $1,000. Retailers must also:
- move customers onto their cheapest plan if they are receiving payment difficulty support, or have been in debt for more than three months and owe more than $1,000
- make it easy for customers to switch to their best offer, by providing clear and accessible information
- offer payment methods other than direct debit for each plan.
Retailers will be able to switch or encourage customers to switch to their best offer if it is expected to save them at least $50 a year compared with their current plan, up from $22.
These reforms are part of a broader suite of changes to Victoria’s energy rules to protect Victorians from paying more than they should for energy, including new rules to help end the ‘loyalty tax’ for long-term customers.
The commission is currently seeking feedback on further changes to Victoria’s energy rules. These changes are intended to remove unnecessary requirements and better protect consumers by clarifying existing rules.
Quotes attributable to Essential Services Commission Commissioner and Acting Chairperson Elly Patira
“Victoria already has strong protections in place to help customers avoid disconnection. These reforms build on those safeguards and strengthen support for households experiencing payment difficulty.”
“These changes will make it easier for Victorians to access better energy offers, while ensuring they are only encouraged to switch when there is a meaningful saving.”
“Retailers must provide clearer information and more flexible payment options to help customers make informed choices and better manage their energy bills.”
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