Energy reconnection rules apply after 1,383 March 2026 disconnections
Victorians disconnected from electricity over unpaid bills may not have to clear their full debt before energy reconnection, after 1,383 residential electricity disconnections were recorded in March 2026.
Early data from the Essential Services Commission shows March 2026 continued a run of elevated monthly disconnections for non-payment. In March 2026, 40% of residential customers disconnected for non-payment had already accessed help to manage their bills.
However, the commission has received concerning reports that some customers disconnected for non-payment were asked to pay large arrears before their power was restored. As a result, the Essential Services Commission contacted retailers, issued guidance and asked them to review reconnection requests and payment arrangements.
Gerard Brody, chairperson and commissioner at the Essential Services Commission, said: “We want to be clear about the intent of Victoria’s energy rules so there’s no room for misinterpretation – disconnection is a last resort and reconnection processes should focus on helping customers reestablish workable arrangements, rather than creating additional barriers.”
Essential Services Commission guidance
In Victoria, retailers must assist customers who are struggling to pay their bills in a way that is fair and reasonable for their individual circumstances. Customers asked to pay substantial debts before reconnection should ask their retailer about affordable payment arrangements and hardship support.
According to the commission, customers may not need to pay the full amount upfront to have energy restored. After speaking with their retailer, customers who still need help can contact the Energy and Water Ombudsman Victoria.
Brody said realistic repayment plans can help both sides over time. He said people facing energy debt often make difficult trade-offs when bills become hard to pay.
Meanwhile, Kane Johnson, senior financial counsellor on the National Debt Helpline at the Consumer Action Law Centre, said threats of disconnection are increasing. Johnson said energy debts are one of the most common issues raised with financial counsellors on the National Debt Helpline.
Johnson said: “We often see energy providers using disconnection, or the threat of disconnection, as a debt collection tool. Energy debts are one of the most common issues discussed with financial counsellors on the National Debt Helpline. Our data shows threats of disconnection are increasing, which is alarming and indicates retailers may not be complying with their obligations.”
Johnson urged energy providers to comply with the Energy Retail Code of Practice before disconnection is considered. That includes setting customers up on affordable payment plans, according to the Consumer Action Law Centre briefing.
