Energy Consumer Reforms 2025
Overview
In 2025, we completed our ‘Energy Consumer Reforms’ review of the Energy Retail Code of Practice. These reforms were proposed by the Energy and Climate Change Ministerial Council (ECMC) in July 2024. The objectives of this review were to help households pay less for energy and enhance protections for energy consumers.
Final Decision
On 30 September 2025, we published our final decision paper on the energy consumer reforms in stage one of our review of the Energy Retail Code of Practice. On the same day, we published version 4 of the Energy Retail Code of Practice, which incorporates administrative updates. Version 5 came into effect on 1 February 2026. Version 6 of the Energy Retail Code of Practice came into effect on 1 July 2026.
The stage one reforms will be implemented in the following three tranches:
| Implementation dates | Energy Retail Code of Practice version number | Reforms |
| 1 February 2026 | Version 5 | Improving awareness of independent dispute resolution services |
| 1 July 2026 | Version 6 | Protections for customers paying higher prices Improving the application of concessions on bills Extending protections for customers on legacy contracts |
| 1 October 2026 | Version 7 | Automatic best offer for customers experiencing payment difficulty Increasing the best offer threshold Increasing the minimum debt amount for disconnection Improving access to cheaper offers Improving the ability to switch to the best offer |
Reforms applying from 1 February 2026
Improving the awareness of independent dispute resolution services
Retailers will be required to include the name and telephone number to contact the Energy and Water Ombudsman (Victoria) on the front page of an energy bill.
Reforms applying from 1 July 2026
Protections for those paying high prices
Retailers will be required to ensure customers on contracts older than four years are paying a reasonable price for their energy.
Improving the application of concessions on bills
Retailers will be required to request concession information from residential customers when it is reasonable to do. Retailers will also be required to request this information in prescribed circumstances. Where a retailer becomes aware that a residential customer holds or is eligible for a concession, it will also be required to take all reasonable steps to ensure the customer receives that concession.
Extending protections for customers on legacy contracts
Retailers will be required to limit all additional retail charges and conditional discounts for all contracts to reasonable costs. This applies to all contracts entered into before and after 1 July 2020. Any benefits that have not yet expired since 1 July 2020 will be required to be maintained.
Reforms applying from 1 October 2026
Automatic best offer for customers experiencing payment difficulty
Retailers will be required to automatically switch residential customers experiencing payment difficulty who meet certain criteria to the best offer. Customers can opt-out of this automatic switch.
Increasing the best offer threshold
The threshold for receiving a best offer message has been increased from $22 to $50.
Increasing the minimum debt amount for disconnection
The minimum debt amount for disconnection has changed from $300 to $1000.
Improving access to cheaper offers
Retailers will be required to accept an expanded variety of payment types for small customers.
Retailers will not be able to use a payment method to restrict access to cheaper offers and additional retail charges will be capped at reasonable levels
Improving the ability to switch to the best offer
Retailers will also be required to provide customers with an effective process to switch to the best offer.
1 October 2026 Factsheet
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