The Essential Services Commission has accepted a court-enforceable undertaking with EnergyAustralia that will see it provide a customer remediation package of approximately $1.2 million of credits and debt waivers, following alleged failures to inform struggling customers of their payment assistance entitlements.
The commission alleges EnergyAustralia did not provide information about the assistance available to over 6000 customers who had been recognised by EnergyAustralia as having difficulty paying their bills. This likely led to customers missing out on concessions and grants they were eligible for, leading to further debt.
The customer remediation package averages an estimated $179 per affected customer.
The alleged conduct happened between 4 December 2019 and 9 August 2024.
In Victoria, energy retailers must provide assistance to customers having difficulty paying their bills. This includes letting customers know what help is available. These rules exist to help these customers:
- lower energy costs
- avoid getting into debt
- repay their debt when they have missed a bill
- ensure they are only disconnected for non-payment as a last resort.
Upcoming changes to help struggling customers
Under changes to Victorian energy rules that take effect from October 2026, retailers must automatically 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.
This change is part of a wider suite of changes to Victoria's energy rules to ensure costumers doing it tough get the best price and stay connected. Struggling customers should not have to pay a loyalty tax because of barriers to switching plans.
Quotes attributable to Essential Services Commission Chairperson and Commissioner Gerard Brody
"This enforceable undertaking will make a real difference to affected customers by reducing their energy bills and debt. It delivers a timely resolution and meaningful remediation."
"This outcome prioritises consumers by delivering direct benefit to affected customers. It also holds EnergyAustralia accountable for meeting its obligations to customers in payment difficulty."
"It's disappointing that a company as large as EnergyAustralia has failed its customers. We expect businesses of this size to have robust systems in place to ensure this doesn't happen."
