Minimum disconnection amount draft decision
In this submission, we discuss the significance of energy affordability in determining a disconnection amount, the risks with setting a threshold to disconnect a person or household from an essential service, and the resulting harms this approach may cause. We provide some insights into how a disconnection threshold relates to the principle of essentiality, and the dependency of energy on the health and wellbeing of Australians. Lastly, we propose some recommendations towards a principles-based framework, with the view to ensuring that disconnection is truly a last resort, and provides strong protection against disconnection for people experiencing disadvantage or vulnerability.
The minimum disconnection threshold is just one consumer protection in a broad energy poverty landscape; that is, it’s not a standalone solution to energy debt. The minimum threshold must be set alongside other forms of assistance including the introduction of a ‘constantly connected’ class of customers, as considered by the AER in its National Energy Customer Framework (NECF) Review.
Keeping customers experiencing vulnerability connected to their essential energy supply is fair, reasonable and good policy, and removes the power imbalances that we observe on the NDH when retailers use the threat of disconnection to secure agreement to highly unsustainable repayment plans.
Read our full submission (PDF).
20250620 AER Minimum disconnection threshold draft decision 1