September 30th, 2025Crack down on big energy companies

The state government is cracking down on big energy companies by strengthening consumer protection laws and helping save families money on their energy bills.

Minister for Energy and Resources Lily D’Ambrosio recently announced changes to the Energy Retail Code of Practice, making them the strongest in the nation and putting $258 back into the pockets of Victorians each year.

Energy retailers will be required to automatically switch customers in payment difficulty, and customers who have had debt on their energy bill for more than three months and over $1000 debt, onto their best offer. This will save 75,000 electricity and 60,000 gas customers a total of $27.8 million per year. Customers can opt-out.

Victorians on older contracts often pay higher rates because they haven’t switched plans. That’s why we’re also introducing a reasonable price limit on energy plans over four years old.

This will stop busy working families being ripped off by the ‘loyalty penalty’ business model where customers sign up to cheap offers, that end up more expensive over time. Around five per cent of customers haven’t changed plans in more than five years and are missing out on potential energy bill savings of up to $730.

There are also increasing protections against disconnection by raising the minimum debt amount that customers must have before a retailer can try to disconnect them from $300 to $1000.

Other changes include capping fees for things like paying bills at the post office or paying late, and banning direct debit only offers – so that customers who don’t or can’t pay via direct debit can access cheaper offers.

For some low-income families, direct debit is hard to manage when payments are taken straight from their account which can lead to additional bank fees or overdrawn accounts if their balance is low, adding financial stress.

More information can be found at esc.vic.gov.au/electricity-and-gas