Minimum disconnection amount – 2025 review

The minimum disconnection amount is one of a range of consumer protections in the National Energy Customer Framework to assist customers who may be struggling to pay their energy bills.

The minimum disconnection amount provides a baseline level of disconnection protections to all energy customers in the National Energy Customer Framework, which applies in the ACT, NSW, Queensland, South Australia and Tasmania. Under rule 116(1)(g) of the National Energy Retail Rules, the AER sets the minimum amount that must be outstanding before a customer can be disconnected for non-payment of a bill, provided that the customer has agreed with their retailer to repay the amount. This amount is currently $300 (including GST) and has been in place since the National Energy Customer Framework was introduced in 2012. The amount was last reviewed by the AER in 2017.

Following our Review of payment difficulty protections in the National Energy Customer Framework, we are proposing to increase the minimum disconnection amount to $500 (including GST). In proposing this amount, we have considered:

• the long-standing principle that customers should not be disconnected for being one quarterly bill behind
• changes in the broader context of the energy market, including inflation, energy prices and estimated quarterly electricity costs
• implementation considerations, including the impact on retailer costs, customer awareness and engagement, and ongoing monitoring and compliance.

We have published a draft decision for the new amount and are seeking stakeholder feedback. Consultation closes on Wednesday, 18 June 2025. We aim to make a final decision on the new minimum disconnection amount in mid-2025.

Background

Reviewing the minimum disconnection amount was Action 10 in the AER’s Towards energy equity strategy. 

Through our Review of payment difficulty protections in the National Energy Customer Framework, we consulted on the effectiveness of the minimum disconnection amount, including how it operates in practice, the appropriateness of the current amount, and any unintended consequences. The review identified an opportunity to strengthen minimum disconnection protections, including by increasing the minimum disconnection amount.

Our Review of payment difficulty protections in the National Energy Customer Framework also recommended complementary rule changes to strengthen minimum disconnection protections, including by amending the National Energy Retail Rules to ensure the minimum disconnection amount protects customers regardless of whether they have explicitly agreed to repay the amount.

Progress to date

• 14 May 2024: The issues paper for the Review of payment difficulty protections in the National Energy Customer Framework consulted on the effectiveness of the minimum disconnection amount, including how it operates in practice, the appropriateness of the current amount, and any unintended consequences.
• 15 May 2025: The findings from our Review of payment difficulty protections in the National Energy Customer Framework identified an opportunity to strengthen minimum disconnection protections, including by increasing the minimum disconnection amount.
• 15 May 2025: We published a draft decision for a new minimum disconnection amount.