Energy retailers must provide assistance to residential customers anticipating or experiencing difficulty paying their energy bills
Payment difficulty framework
Overview
Payment difficulty framework
The payment difficulty framework is a set of energy rules to better protect and support residential customers that are anticipating or facing payment difficulty.
The framework's purpose is to:
- help residential customers avoid getting into debt with their retailer
- make it easier for residential customers to pay for their ongoing energy use, repay their debt when they have missed a bill and lower their energy costs
- ensure residential customers are only disconnected for non-payment of a bill as a measure of last resort.
The payment difficulty framework is outlined in Part 6 'Assistance for residential customers anticipating or facing payment difficulties' of the Energy Retail Code of Practice.
Payment difficulty framework guideline
In July 2024, we released the payment difficulty framework guideline to assist energy retailers and exempt electricity sellers meet their obligations under the framework. The guideline specifies required forms of assistance and provides case studies and best practice examples.
The guideline was developed as part of our 'Getting to fair' strategy and follows our payment difficulty framework implementation review in 2021. It also consolidates and replaces guidance notes that we previously issued.
Background
The payment difficulty framework was developed in 2017 in response to the high numbers of residential customers being disconnected for non-payment.
In 2019, we updated the energy rules and introduced the payment difficulty framework to better protect residential customers that are anticipating or facing payment difficulty. The updates took effect on 1 January 2019 and are reflected in Part 6 of the Energy Retail Code of Practice.
In February 2019, we audited retailers’ websites to ensure they included information for customers on their entitlements to assistance.
In 2021, we conducted a review of how energy retailers were implementing the payment difficulty framework. We found that the framework delivers positive outcomes for customers when it is implemented effectively. However, we also identified areas where implementation could be improved for the mutual benefit of customers and retailers.
In the same year, we launched our 'Getting to fair' strategy to address consumers' experience of vulnerability and break down barriers to essential services. Both the framework and guideline align with the strategy's purpose to support consumers experiencing vulnerability.