Information for Victorian consumers

From 1 February 2026

Improving the awareness of free and independent dispute resolution

The front page of your energy bill will include the telephone number of the Energy and Water Ombudsman (Victoria), which is a dispute resolution service you can use if you are unsatisfied with the outcome of a complaint raised with your energy retailer.

From 1 July 2026

Protection for customers paying higher prices

If you have been on the same energy plan for over four years, your energy retailer must ensure you are paying a reasonable price. If you are not paying a reasonable price, the retailer must lower your tariff or switch you to a cheaper plan. A retailer must undertake this check at least once a year for all its customers who are on contracts four years or older. 

Retailers will consider a range of factors to determine a reasonable price, including:
•    the median price of energy for their other customers
•    their cheapest plan
•    the value of the plan’s additional benefits.

Most energy tariffs increase once a year, so households that stay on the same plan end up paying more for their energy than those who switch to newer, cheaper plans. Under this rule change, you will not end up paying too much for your energy simply because you haven’t changed plans.

Improving the application of concessions on bills

Many energy consumers are not receiving the energy concessions they are entitled to.

In addition to asking about concession eligibility when you sign a new contract or switch plans, your retailer will have to ask about your eligibility for concessions whenever it is reasonable to do so.                                                                                             
Your retailer will also have to take all reasonable steps to ensure you receive any concession you are eligible for and must let you know if you become ineligible for a concession you were receiving. 

Extending protections for contracts entered into before 1 July 2020

If you signed your energy contract before 1 July 2020, any additional retail charge or payment discount you receive related to a payment method will now be limited to the costs incurred by your retailer. This protection already applies to contracts entered into from 1 July 2020.

Retailers must set reasonable costs for pay-on-time discounts on all contracts. In setting pay-on-time discounts, retailers must consider the same criteria we have been using to cap pay-on-time discounts over the past five years.

If the charge or discount exceeds what is reasonable, your retailer must apply this discount unconditionally or not make a charge at all.

If your plan has an active benefit, such as a discount, rebate or credit, on contracts entered into before 1 July 2020, your retailer must provide this benefit until the end of the contract. This protection already applies to contracts entered into from 1 July 2020.                                                                                                               

From 1 October 2026

Increasing the minimum debt disconnection amount

The minimum amount of energy debt which you can be disconnected for will increase from $300 to $1,000. 

This change considers increases in the annual cost of energy bills since the previous threshold was set. It also reinforces our position that disconnection for non-payment should be the last resort.                                                                                  

Ensuring struggling customers are automatically switched to the cheapest plan

Your retailer must move you onto its cheapest plan if you are on payment difficulty support or have been in debt for more than three months and owe more than $1,000.

If you are eligible to be automatically switched onto your retailer’s cheapest plan, you will still be given an opportunity to remain on your current plan.                        

Improving access to cheaper offers

Retailers will no longer be able to make a particular payment method mandatory for an energy plan. For example, they will no longer be able to limit access to an energy plan to people who pay by direct debit. This will enable all customers to access the best energy plans.

Retailers will be able to charge conditional fees or offer conditional discounts for some payment methods, but these must be based on reasonable estimates of the costs or savings associated with that payment method.

Making it easier to switch to a better plan 

Your retailer must have an effective process for you to switch to its best offer plan. It must also have instructions on how to switch energy plans on its website, and a process for doing so over the phone. 

Changes to ‘best offer’ messages

Your energy retailer must include a message on your bill to let you know if you are receiving the ‘best offer’ energy plan. Your retailer must include this at least once every three months for electricity and once every four months for gas.

Under the rule changes, you will only receive ‘best offer’ messaging if the annual savings you would get by changing plans are more than $50.

We expect this change to improve consumer confidence in the ‘best offer’ message by providing a bigger saving to customers who switch. 

How to contact us

You can contact the Essential Services Commission via email, mail or phone.

Email: energyreform@esc.vic.gov.au

Mail: Essential Services Commission, Level 8, 570 Bourke Street, Melbourne Victoria 3000

Phone: +61 3 9032 6290