Payment difficulty framework implementation review 2021

What is the payment difficulty framework?

The framework is a set of energy rules to better protect and support residential customers that are anticipating or facing payment difficulty. The framework was developed in 2017 in response to high numbers of residential customers being disconnected for non-payment.

The framework’s objectives are that:

• customers are supported to pay their ongoing energy use, repay their arrears and lower their energy costs
• customers are only disconnected for non-payment as a last resort and
• customers avoid getting into arrears with their retailer.

We now have an increased awareness that the barriers to getting help are exacerbating the experience of vulnerability.

Why are we doing this review?

When we established the framework, we committed to review how it was working in practice two years after it came into effect.

How will we conduct the review?

We will focus on evaluating the operation of the framework in meeting its objectives. We will gather customer experiences directly, and information on whether the implementation of the framework has been effective. We will also draw on insights and data from the community, regulated businesses, and our partners across government to inform the review.

Based on this assessment, and our findings, the review will also identify options for improving the operation of the framework such as:

• working with interested stakeholders to design practical solutions to the issues raised in the review
• developing guidance notes or industry education material to further support implementation of the payment difficulty framework.

Feedback on our approach

We invited submissions on our proposed approach from 2 September to 19 September 2021. This initial period of engagement focused on the appropriateness of the scope and purpose of the review. We received eleven submissions from a variety of stakeholders including community representatives, energy retailers and energy consumers.

There was a general level of comfort across the submissions about the scope of the review and the appropriateness of our review questions. Many submissions emphasised the need to refer to both quantitative, as well as qualitative data, throughout this review and welcomed our proposed collaborative approach to stakeholder engagement. All submissions received can be found under the 'Review documents and submissions' tab of this web page. 

We were also provided with a number suggestions of areas or issues for us to consider such as:

• other sources of information to refer to
• the application of the framework rather than the framework itself
• addressing any issues or discrepancies in the current framework
• the interaction between customer debt and customer engagement.

After considering this early feedback, and given the level of comfort expressed in submissions, we have not changed our proposed approach to the review or our key review questions.

Feedback on key review questions

Between 19 September and 30 November 2021, we invited your feedback on our key review questions. We are now analysing those submissions along with the data and insights we already have. The information from these submissions will inform our findings report, planned for release in March 2022.

Visit Engage Victoria to find out more.