The Australian Energy Market Commission (AEMC) has proposed reforms to strengthen protections for energy customers experiencing payment difficulties through earlier intervention and clearer safeguards against disconnection.
Currently, more than 200,000 residential customers have energy debts exceeding 90 days, while around one in three customers with energy debt are not receiving support through a payment plan or hardship program.
The proposed changes follow a 2025 review by the Australian Energy Regulator, which found existing consumer protections were failing to consistently reach customers in need.
Under the draft reforms, energy retailers will be required to make greater efforts to engage customers before disconnection, including contacting them through at least two communication channels. The reforms would also introduce clearer and more consistent rules around when disconnection protections apply, reinforcing that disconnection should remain a measure of last resort.
Other proposed changes include simplifying eligibility categories for payment difficulty protections and improving the visibility of payment assistance information across retailer websites, reminder notices and disconnection warning notices.
Anna Collyer, Chair at AEMC, shared that the reforms are intended to ensure customers receive support before financial pressures escalate.
“No one should have to wait until energy debt becomes unmanageable before they are offered practical support,” Collyer said.
“We want to help retailers identify payment difficulty sooner and provide clearer options to customers before debt becomes harder to recover from.”
Alongside the draft rule, the AEMC has also released a consultation paper on a separate proposal that would prevent retailers from requiring customers to provide evidence of their financial circumstances before receiving assistance.
The AEMC explained that the proposed rules recognise that requests for sensitive financial information can discourage people from seeking help and may create unnecessary barriers for customers already experiencing hardship.
The reforms stem from five rule change requests arising from the Australian Energy Regulator review of payment difficulty protections in the National Energy Customer Framework. That review found customers were not always receiving timely support and, in some cases, disconnection was being used to encourage engagement rather than being treated as a last resort.
The draft rules also align with broader national reforms under consideration by Energy Ministers to introduce a single, consistent definition of customers experiencing payment difficulty.
The proposed changes build on consumer protection reforms finalised by the AEMC in 2025 and complement the Commission’s recent recommendations to simplify electricity pricing and improve customer experiences.
The AEMC is seeking stakeholder feedback on both the draft rule and consultation paper, with submissions closing on 30 July 2026.
For more information, visit the AEMC website.
