Submission to the Energy Retail Code of Practice review

Household energy is an essential service that Victorians on low incomes struggle to afford, and because of high energy costs, many are accruing unmanageable amounts of debt.

The average energy arrears for customers who cannot pay for their ongoing usage when entering tailored assistance from their retailer is currently $1,145 for electricity, and $1,003 for gas. VCOSS understands from our members that cases of debts above $10,000 are often observed by energy support services. Consumer Action Law Centre recorded a debt of $34,102 for one energy contact to the National Debt Helpline in 2023.

These impacts are compounded by retailer practice. Community sector consumer advocates observe that retailers often fail to deliver adequate assistance to customers in payment difficulty. A primary concern raised by VCOSS members is that retailers do not adequately support people onto cheaper energy offers or check for and apply eligible concessions.

In this context, VCOSS welcomes the ESC’s proposed reform objectives for this phase of the Energy Retail Code of Practice (ERCOP) review – Energy and Climate Change Ministerial Council reforms. We are particularly pleased that the ESC has heard advocates’ calls to consider ways to require retailers to lower the ongoing cost of energy for households struggling with bills, and to explore options for automating some elements of this process.

Our submission has been written with input and support from VCOSS member organisations in the community sector, and from other energy consumer advocates.