Last year, 23,000 Australian households had their electricity disconnected for not paying their bills. At least twenty times more electricity customers are in debt and at risk of disconnection. This poses a significant risk to the mental, social, and physical health of customers. To address, this researchers and consumer advocates alike are calling for a ban on electricity disconnections in Australia. But how would this work?
Through our Grants Program, we funded RMIT to conduct research about how disconnection bans work in France, Spain and Ireland, which are considered “good examples” for disconnection protections. In particular, the research examined how the disconnection bans worked, who they applied to, and how successful they had been for householders. Based on these insights, the research considered how this could be applied to Australia, and what possible alternatives to disconnections exist.
Importantly, the research found that disconnections can be banned in Australia without significantly destabilising the energy market. This highlights the need for an honest and courageous discussion about the potential implementation of more extensive disconnection bans in Australia.
The report includes a series of recommendations for Australian policy makers, energy retailers, and researchers, as they consider how these bans may work in practice. Key recommendations include:
- Implementation of legally binding disconnection bans based on medical electricity needs, financial or social vulnerability and collaborations with social and consumer services.
- Winter and summer disconnection moratoria to protect public health.
- Reducing the power supply rather than completely disconnecting a property, so essential energy needs can continue to be met.
- Recognise the right to energy, positioning the energy industry as a key partner in safeguarding public health and as a steward of a basic human right.
To build on this important work, Energy Consumers Australia is undertaking further research in this area, including what steps retailers, governments and policymakers must make to identify, engage and support consumers in vulnerable circumstances and help ensure households facing payment difficulties can access affordable and sustainable payment plans.
