New energy rules help customers get the best price, stay connected, and tackle loyalty tax

The Essential Services Commission is changing Victoria’s energy rules to ensure customers doing it tough get the best price and stay connected, and to tackle the energy market’s ‘loyalty tax’.

Under the changes to the Energy Retail Code of Practice, the minimum debt a consumer can be disconnected for increases from $300 to $1000 (from October 2026), and retailers must:

• move customers onto their cheapest plan if they are on payment difficulty support, or have been in debt for more than three months and owe more than $1,000 (from October 2026)
• ensure customers who have been on the same plan for more than four years are paying a reasonable price or move them onto a cheaper plan if they are not (from July 2026)
• offer payment methods other than direct debit for each plan (from October 2026)
• have effective processes available for customers to switch to their best offer (from October 2026)
• check if customers are eligible for concessions at key times (from October 2026)
• include details for the Energy and Water Ombudsman Victoria on the front page of all energy bills to increase awareness of independent and free dispute resolution (from 1 February 2026).

Measures to ensure customers are on competitive plans directly address energy affordability. The commission’s analysis found customers who had been on the same plan for two years or more could have saved up to $410 each year by being on their retailer’s cheapest plan, and those who hadn’t changed plans for over 10 years could have saved up to $950 each year.

These rule changes are in response to a request from the Victorian Minister for Energy and Resources, alongside recommendations from the Energy and Climate Change Ministerial Council. They   are informed by consultation with consumers, industry, community organisations and advocacy groups.