VDO and ESC reforms

Retailers will be required to review the pricing of customers who have remained on the same electricity plan for four or more years at least annually, to ensure they are paying a reasonable price. Retailers may determine how these reviews are conducted.

Retailers will also be prohibited from charging fees or additional costs linked to payment conditions — including pay-on-time arrangements — where those charges exceed the retailer’s reasonable costs. These requirements will apply across all energy contracts, including legacy contracts entered into before 1 July 2020.

Where an existing conditional discount exceeds a retailer’s reasonable costs, the discount must instead be applied unconditionally. Similarly, payment-related fees cannot be higher than the retailer’s reasonable costs.

While retailers are not required to amend legacy contracts to reduce existing discount rates, they must ensure compliance with these reforms moving forward. Existing obligations to preserve customer benefits for the duration of a contract term will also be extended to legacy contracts.

Your Actions

Below is the list of actions you'll need to complete by 1 July 2026.

Pricing review
Retailers will be required to review pricing at least annually for customers who have remained on the same electricity plan for four or more years, with retailers able to determine when these reviews are conducted. 

Charges review
Review and amend, where required, your discounts and payment-related charges to ensure compliance with these obligations. These requirements apply to all contracts, including legacy contracts entered into prior to 1 July 2020.

Refer to Knowledge Base article Charges report and Charges - add, edit or delete.