Australian Energy Market Commission introduces new customer protections

The Australian Energy Market Commission (AEMC) has introduced a new rule to provide stronger protections for energy customers facing financial hardship. This move follows data from the Australian Energy Regulator (AER) indicating that residential energy debt of 90 days or more has reached a five-year high.

A review revealed that existing protections were often complex and applied inconsistently, with approximately one-third of indebted customers failing to receive adequate support through payment plans or hardship programs. The new regulations aim to close these gaps by requiring retailers to use at least two communication channels when contacting customers at risk of disconnection.

Additional reforms include reinforcing disconnection as a last resort, simplifying eligibility categories for payment difficulty protections, and requiring clearer information regarding payment assistance on retailer websites and in warning notices. AEMC chair Anna Collyer noted that the reforms are designed to help consumers access support earlier as cost-of-living pressures impact energy users.