Victorians struggling to pay gas and electricity bills will be entitled to more help to prevent debt and disconnection under new rules for energy retailers.
Flexible payment options, lower tariffs and a six-month debt payment "hold" for people who have missed paying their energy bills are part of changes announced by the Essential Services Commission on Tuesday.
Retailers who break the rules can be forced to pay $500 a day to wrongfully disconnected customers and face a $5000 fine.
"The new rules raise the bar for what energy retailers must do to help customers who are struggling to keep on top of their energy bills," chair Ron Ben-David said.
Up to 13,500 Victorian households were disconnected for non-payment between April and June, ESC figures show.
"Disconnections should always be a measure of last resort," Dr Ben-David said.
Under the new system, all Victorians who are struggling to pay bills but have no debt to energy companies will be able to access flexible payment plans and get advice on reducing costs.
There are also options to pay equal payments for a specified period, pay the same amount every month instead of every quarter, postpone a payment, or pay a set amount in advance.
"These measures hold retailers to account for the results they achieve for the customer," Dr Ben-David said.
He said the changes are a "once-in-a-generation" change to benefit customers, meaning Victoria is "leading the pack" for rules to help struggling energy customers.
The change was welcomed by the Australian Energy Council, who represents electricity and gas retailers.
"Disconnection is a last resort and retailers seek to work with customers to avoid a debt-disconnection cycle," council retail general manager Sarah McNamara said.
The plan to limit disconnections and offer more help to struggling households has been backed by the Victorian Council of Social Services.
"This will mean fewer people racking up monster debts or living in the dark," chief executive Emma King said.
But for many households on low incomes there is not enough money to pay the power bills, she added.
"Skyrocketing power prices, low wage growth, expensive housing and inadequate income support have created a toxic mix, making support for low-income Victorians more crucial than ever."
The new measures will come into effect on January 1, 2019.
Share
