AER/ESC Disconnection threshold

As highlighted in our recent compliance webinar, we would like to remind you of an important regulatory change coming into effect on 1 July 2026 that may impact your billing processes and customer communications.

This reform includes an increase to the Australian Energy Regulator (AER) minimum disconnection threshold for electricity and gas customers in New South Wales, Queensland, South Australia, Tasmania, and the Australian Capital Territory.

Please review the information below to understand how these changes may affect your organisation and any actions required to ensure compliance ahead of the effective date.

AER disconnection threshold in NSW, QLD, SA, TAS, ACT

From 1 July 2026, the Australian Energy Regulator (AER) will increase the minimum disconnection threshold from $300 to $500 (including GST). This means electricity and gas customers cannot be disconnected for non-payment unless the outstanding balance meets or exceeds the new $500 threshold.

ESC disconnection threshold in VIC

In Victoria, the Essential Services Commission (ESC), and the Payment Difficulty Framework (PDF), has approved an increase to the minimum disconnection threshold from $300 to $1,000. The change is expected to take effect 1 October 2026..

Your actions

Below is the list of actions you'll need to complete.

AER disconnection threshold
Please review and update the minimum amounts configured on your treatments to ensure they align with the new regulatory requirements effective from 1 July 2026.

Where applicable, treatment thresholds related to payment reminders, collections, and disconnection processes should be updated to reflect the new minimum disconnection amount of $500/$1000 (including GST) for electricity and gas customers. 

ESC disconnection threshold
Please review and update the minimum amounts configured on your treatments to ensure they align with the new regulatory requirements effective from 1 October 2026

Refer to the Knowledge Base article Treatments - edit.

Note: If you have customers both within and outside Victoria, you can either apply the higher disconnection threshold to all customers or maintain separate treatment processes for Victorian and non-Victorian customers. If you would like your treatments split into Victorian and non-Victorian groups, please submit a support ticket. Please note that this change will restart any treatment cycles that are currently in progress.