Effective immediately, the minimum debt at which a customer can be disconnected has increased from $300 to $1000.
Retailers will also be permitted to switch customers — or encourage them to switch — to their best offer only when it is expected to save them at least $50 a year, up from the previous $22 threshold.
The reforms are part of a broader package of changes to Victoria’s energy rules, including new measures aimed at ending the “loyalty tax” faced by long-term customers.
The Essential Services Commission is seeking feedback on further amendments intended to remove unnecessary requirements and clarify existing consumer protections.
Essential Services Commission commissioner and acting chair Elly Patira said the reforms built on existing safeguards for households in financial difficulty.
“These changes will make it easier for Victorians to access better energy offers, while ensuring they are only encouraged to switch when there is a meaningful saving,” Ms Patira said.
“Retailers must provide clearer information and more flexible payment options to help customers make informed choices and better manage their energy bills.”
Ms Patira said Victoria already had strong protections in place to help customers avoid disconnection.
“These reforms build on those safeguards and strengthen support for households experiencing payment difficulty,” she said.
