The minimum disconnection amount is one of several protections designed to support customers who may be struggling to pay their energy bills.
Under the Retail Law and Rules, disconnection should be a last resort, and retailers cannot disconnect a customer where the outstanding amount is below the approved threshold and a payment arrangement is in place.
Our submission (PDF, 580.23KB) supports strengthening this protection but emphasises that increasing the threshold must be part of a broader reform agenda to reduce harm and improve early support for customers in hardship.
We make three key recommendations:
- Disconnections must be treated as an absolute last resort and should not be used to prompt engagement.
- The minimum disconnection amount must sit inside a system of proactive, early-intervention supports that make disconnection unnecessary.
- Reform must be responsive — future reviews of the minimum disconnection amount should occur regularly.
With rising energy prices and growing household debt, now is the time to modernise how the energy system identifies and supports people experiencing payment difficulty, ensuring access to energy is protected for all consumers.
