Notice of amendments to the Energy Retail Code of Practice

NOTICE OF DECISION

Energy Retail Code of Practice (Energy Consumer Reforms) Amendment 2025

Notice is given under section 12 of the Subordinate Legislation Act 1994 (the SL Act) that, following the publication of a regulatory impact statement (RIS) on 16 May 2025, pursuant to section 47 of the Essential Services Commission Act 2001, the Essential Services Commission has amended the Energy Retail Code of Practice (code) as published on the Essential Services Commission’s internet site.

The amendments implement the energy consumer reforms proposed by the Energy and Climate Change Ministerial Council in Victoria. They also aim to ensure that the code remains fit-for-purpose in addressing current or emerging challenges concerning the long-term interests of Victorian consumers.

The proposed draft amendments to the code and a Regulatory Impact Statement (RIS) were made available for public comment on the Engage Victoria website between 16 May 2025 and 26 June 2025.

The Essential Services Commission received a total of 31 submissions from industry participants, consumer groups, community and information support organisations, individuals and the Energy and Water Ombudsman Victoria.

These submissions have been considered in accordance with section 11(3) of the SL Act. Analysis of the feedback received resulted in refining some of the proposed amendments presented in the RIS.

The key amendments from the RIS include:

Automatic best offer for customers experiencing payment difficulty

• Certain plans that include repayments for physical energy assets or Virtual Power Plant membership will be excluded from the requirement to be automatically switched.
• Where a retailer reasonably believes that issuing a notice or completing the switch to the best offer may cause significant risk of harm to an affected customer, the retailer is not required to issue the notice of intention to switch or complete the switch.
• The Essential Services Commission has decided not to proceed with the post switch reversal we proposed in the RIS. This means a retailer will not be required to move a customer back to their original plan (if requested) after they have been switched to the best offer.

Increasing the minimum debt disconnection amount

• The Essential Services Commission has decided to increase the revised minimum debt disconnection amount for non-payment from $500 to $1,000.

Improving access to cheaper offers

• The Essential Services Commission has decided not to proceed with the requirement for retailers to offer paper bills on all plans.

Improving the ability to switch to the best offer

• The Essential Services Commission has decided not to proceed with the minimum requirement for retailers to have a process to compare a customer’s current plan to other available plans.

More details on how submissions have been considered and responded to are set out in the final decision paper published on the Energy Retail Code of Practice review Engage Victoria website and on the Reviewing the Energy Retail Code of Practice Essential Services Commission's webpage.

The code is available for download from Energy Retail Code of Practice | Essential Services Commission. The amendments to the code will be implemented in the following three tranches:

Gerard Brody

Chairperson, Essential Services Commission