Energy disconnections cause serious harm

Tuesday 28 April 2026

EWON report calls for national rule reform

The Energy & Water Ombudsman NSW (EWON) is calling for urgent reforms to the National Energy Customer Framework to minimise the serious harm caused to customers who are disconnected from their energy supply.

9,998 residential customers in NSW had their energy disconnected for non-payment in the first half of FY 2025-26 (up to 31 December 2025).

EWON’s new report Spotlight On The Harms of Disconnection draws on hundreds of customer complaints, to show that disconnection for non payment does not help people engage with their retailer, but instead results in destabilised families, compromised health and safety, increased psychological distress and ultimately, entrenched financial vulnerability.

Energy & Water Ombudsman NSW, Janine Young, said the report highlights the real consequences of Australia’s current energy affordability crisis and disconnection rules.

“When households lose power, they don’t just lose electricity – they lose safety, stability and dignity,” Ms Young said.

“We’ve seen examples of families not being able to access their homes, children staying with other family members, fear of medication spoiling, medical devices failing, and people being pushed deeper into crisis. These harms are foreseeable, and avoidable.”

EWON is calling for urgent reforms to address systemic gaps in the affordability framework to better protect customers that simply cannot afford to pay their energy costs and whose financial circumstances are unlikely to change, including:

• removing the ‘two strikes’ payment plan rule
• prohibiting upfront payments to avoid disconnection or reconnect customers experiencing payment difficulties
• implementing debt relief for consumers who cannot afford their energy costs
• increasing the minimum disconnection amount from $500 to $1,000
• establishing a compensation framework for customers who have been wrongfully disconnected
• removing the term ‘hardship’ from the National Energy Customer Framework (NECF)
• ending disconnection of customers currently labelled in the NECF as ‘hardship customers’
• retailers improving engagement practices to reach customers experiencing vulnerability.

“Energy is an essential service. The rules must do more to recognise the reality people are facing and prevent harm before it occurs,” Ms Young said.

Case study available: Sue Wilson, EAPA assessor, St Vincent de Paul Society NSW. 

Sue called EWON’s Extra Help Team as an advocate for a single mother in severe financial difficulty, who was also experiencing family violence and mental health issues. The customer had a $11,000 energy debt. EWON prevented the customer from being disconnected. Sue can describe the extreme situation this customer was experiencing.
 
For further information or to request an interview with the Ombudsman, please email jacquelinem@ewon.com.au or call 0426 822 341. 

Read the report