AER approval of minimum disconnection amount

The National Energy Retail Law (Retail Law) and National Energy Retail Rules (Retail Rules) are expected to commence on 1 July 2012.

Part 6 of the Retail Rules sets out the circumstances under which a retailer can arrange for the disconnection of a customer’s premises. In particular, under r. 116 of the Retail Rules, a retailer cannot disconnect a customer for non payment where the amount owing is less than an amount approved by the AER and the customer has agreed to repay that amount.

The AER has approved an amount of $300 (GST inclusive) for the purposes of r. 116. This will apply to both gas and electricity and to all jurisdictions adopting the Retail Law and Rules. The AER will review this amount again, once it has been in effect for 18-24 months.

The AER has published a letter outlining its considerations and decision on this matter.

The AER held a stakeholder forum in January 2012 and published a subsequent consultation letter in February, seeking comment on the AER's proposed approach. The views put forward as part of this consultation process have information the AER's decision. Copies of the forum agenda and presentations as well as the submissions received to our letter have been published.

Issued date: 
5 April 2012
AER reference: 
AC 017/12
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