The Australian Energy Market Commission (AEMC) has taken the next step on a package of reforms aimed at strengthening protections for energy consumers experiencing payment difficulties.
More than 200,000 residential customers have energy debt of 90 days or more, while cost-of-living pressures remain the number one source of anxiety for Australians.
However, a review by the Australian Energy Regulator (AER) in 2025 found existing protections were falling short, with about one in three customers with energy debt not receiving support through a payment plan or hardship program.
What the AEMC is proposing
The AEMC has made a draft rule covering four rule change requests intended to enhance requirements on energy retailers so customers experiencing payment difficulty are engaged early and given clearer, more tailored support.
The proposed changes would require:
- retailers to make stronger efforts to contact customers at risk of disconnection, including through at least two communication channels
- clearer and more consistent rules around when disconnection protections apply, reinforcing disconnection as a last resort
- simpler eligibility categories for payment difficulty protections, making it easier for customers and retailers to understand when support should be provided
- clearer payment assistance information on retailer websites, reminder notices and disconnection warning notices.
The Commission has prioritised these four rule change requests and is using a fast-track process, reflecting the importance of the issue and the extensive consultation already undertaken through the AER’s review.
It has also released a consultation paper for a fifth rule change request that includes a proposal to ban retailers from requiring proof of a customer’s financial circumstances before providing assistance.
The proposal acknowledges that sharing sensitive or embarrassing financial details can discourage people from asking for help. It also considers situations where customers may struggle to provide formal proof of payment difficulty.
AEMC Chair Anna Collyer said the proposed reforms are about making sure support starts earlier and is better matched to each customer’s circumstances.
“No one should have to wait until energy debt becomes unmanageable before they are offered practical support,” Ms Collyer said.
“We want to help retailers identify payment difficulty sooner and provide clearer options to customers before debt becomes harder to recover from.”
All five rule change requests arise from the AER’s Review of payment difficulty protections in the National Energy Customer Framework.
The review found customers were not always getting the support or information they needed, and that disconnection was sometimes being used to force engagement rather than treated as a last resort.
It also recommended simplifying the current distinction between hardship customers and other customers experiencing payment difficulty.
A proposal for a single, consistent definition for customers experiencing payment difficulty is currently being considered by Energy Ministers under the Better Energy Customers Experiences reform work.
The AEMC’s draft rules are intended to support that direction by simplifying eligibility categories and making payment assistance information clearer and more accessible.
AEMC’s broader reforms to protect consumers
The proposed reforms build on a package of new consumer protections finalised by the AEMC in 2025, which included a rule change to better assist hardship customers.
The Commission has also just released its final recommendations from its electricity Pricing Review to make power bills simpler, fairer and better suited to the energy system Australians are already building.
What happens next
The AEMC is seeking stakeholder feedback on its draft rule and determination, as well as the consultation paper.
Submissions to the draft rule Streamlining payment difficulty protections are due 30 July 2026. Visit the project page for more information.
Submissions to the consultation paper Strengthening standards for payment difficulty assistance are also due 30 July 2026. Visit the project page.
About the AEMC
The AEMC is Australia's independent energy market rule maker. We make and amend the rules that govern electricity and gas markets, conduct reviews of the energy sector, and advise Australian governments on energy market development. Our work is guided by the long-term interests of energy consumers - including reliable, safe and affordable energy.
Media: Jessica Rich, 0459 918 964, media@aemc.gov.au