New consumer resource: Guaranteed service level payment scheme for distribution energy outages

Victorian energy consumers can expect electricity distribution companies to meet guaranteed service levels relating to how they manage unplanned power outages. These outages can occur for a number of reasons, however they are generally infrequent, and last for short periods. 

Customers who experience many, or long, unplanned power outages during the year may be entitled to compensation from their energy distributor.

The Electricity Distribution Code of Practice sets out the minimum service standards for electricity distributors and the corresponding amounts they must pay affected customers if those standards are not met within the specified timeframe.

The Essential Services Commission administers a general payment scheme – known as the guaranteed service level scheme – that compensates affected customers where energy distributors have not met the standards. This guaranteed service level payment scheme applies to small customers consuming 160MWh or less of electricity per year.

The scheme is a safeguard for Victorian energy consumers, particularly those who may be experiencing vulnerability, ensuring customers are fairly compensated in circumstances where a distributor fails in its responsibility to make a guaranteed service level payment.

The commission has released a new consumer information sheet regarding the guaranteed service level payments scheme in Victoria, to provide customers with clear and accessible information about the scheme and the appropriate steps to take if they qualify for a payment but have not received it.

An energy compliance and enforcement priority in 2022-23, the commission remains committed to ensuring electricity distributors uphold reliable service levels and pay customers in instances of service failures — promoting distributor accountability and improved delivery of essential services to Victorians.

To find out what your energy rights are and how to access the guaranteed service level payment, see our consumer information sheet.