Guidance note 7 (2020): Preventing disconnections of customers receiving assistance under Part 3: clause 116(1)(d) (no longer in force)

This guidance note is no longer in force. From 24 July 2024, energy retailers and exempt electricity sellers can refer to the payment difficulty framework guideline for assistance in meeting their obligations under the payment difficulty framework.

This guidance was published prior to the Energy Retail Code becoming a code of practice under Part 6 of the Essential Services Commission Act 2001. The obligations that are the subject of this guidance note (previously located in clause 116(1)(d) of the Energy Retail Code) can be found in section 40SS(c) of the Electricity Industry Act 2001 and section 48DU(c) of the Gas Industry Act 2000.

Guidance

An energy retail industry pulse check was issued to retailers on 4 May 2020 to understand the practices retailers have in place to support customers experiencing payment difficulties and family violence in line with protections in the Energy Retail Code.

The pulse check found retailers have adopted a standard practice when it came to preventing wrongful disconnections as prohibited by clause 116. However, a key issue was whether the standard was adequate.

Having regard to current industry practices, we considered the requirements of clause 116(1)(d) and provide the following guidance.

Clause 116(1)(d) provides:

116    When a retailer must not arrange de-energisation

(1)    Restrictions on de-energisation

Despite any other provisions of this Division but subject to subclauses (2), (3) and (4), a retailer must not arrange for the de-energisation of a customer’s premises to occur:

…

(d)    where the customer is a residential customer who is receiving assistance under Part 3 and is adhering to the terms of that assistance.

Although the pulse check found most retailers’ disconnection processes included a check for customers on active ‘payment plans’, this check is not adequate if it does not cover customers who are receiving other assistance under Part 3 of the code. Guidance on this point is provided below.

Why might checking for a payment plan not be enough?

The prohibition on disconnecting a customer in clause 116(1)(d) is not limited to a customer on a ‘payment plan’ – it applies to a customer who is receiving assistance under Part 3 of the code.

A customer may be receiving assistance under Part 3 that is not a payment plan, for example a payment extension under clause 76(2)(c) of the code.

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