This minimum disconnection amount is effective from 1 July 2026.
The AER has published the final decision from our 2025 review of the minimum disconnection amount. We have decided to increase the amount from $300 to $500 (including GST), effective from 1 July 2026.
The amount applies to both electricity and gas customers.
Need the current minimum disconnection amount decision?
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 minimum 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.
Our Review of payment difficulty protections in the National Energy Customer Framework identified an opportunity to strengthen disconnection protections by increasing the minimum disconnection amount. We published a draft decision on 15 May 2025. We received 14 formal submissions and 2 informal (verbal) submissions.
On 28 August 2025, we published a final decision to increase the minimum disconnection amount to $500 (including GST). It comes into effect on 1 July 2026 and applies to both electricity and gas customers.
The new amount is reflective of today’s average estimated quarterly electricity bill. It strengthens payment difficulty protections for all customers while minimising the risk of cost increases due to unmanageable debt.
We will monitor relevant data, including retail performance data on the assistance gap, debt levels and disconnection rates, to determine when to review the minimum disconnection amount in future.
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.
- 19 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.
- 19 May 2025: We published a draft decision for a new minimum disconnection amount.
- 18 June 2025: Consultation on the draft decision closed.
- 28 August 2025: We published a final decision to increase the minimum disconnection amount to $500 (including GST) from 1 July 2026.