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Research Shows Prohibiting Energy Disconnections Unlikely to Disrupt Market Stability

February 3, 2026
in Social Science
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Emerging research spearheaded by RMIT University is charting a transformative pathway toward eliminating harmful electricity disconnections, a challenge confronting millions of vulnerable households worldwide. This inquiry delves deeply into pioneering protections adopted by select European nations and Australia, explicitly highlighting the nuanced interplay between energy consumer rights and the operational imperatives of competitive energy markets. The findings underscore that safeguarding households from disconnection, without precipitating market destabilization, is not only feasible but essential for achieving equitable energy access.

In 2022 alone, data from the EU Agency for the Cooperation of Energy Regulators revealed that approximately 20 million European households experienced electricity and gas disconnections due to non-payment. Meanwhile, Australia reported around 23,000 electricity disconnections in the 2023–24 period. These figures belie the significant physical and psychological ramifications of disconnections, which exacerbate health vulnerabilities, intensify financial insecurity, and inflict considerable mental stress on affected populations. The threat or occurrence of energy loss plunges individuals into environments deprived of critical services, underscoring the urgent need for effective protective policies.

The study, conducted in collaboration with Universidad Autónoma de Madrid, University College Dublin, and ISG International Business School in France, meticulously reviews national frameworks that have instituted considerable or total bans on disconnections for vulnerable consumers. Spain exemplifies this paradigm through its legal framework that forbids disconnection for designated vulnerable households while redistributing the associated costs between energy retailers and local authorities. The country’s social bonus tariff further enhances affordability with discounts reaching as high as 65 percent. This innovative dual approach safeguards households without compromising supplier viability.

Distinctive to France and Ireland are wintertime moratoriums on disconnections, preventing energy loss during seasons of heightened risk. Both countries also employ managed supply reductions, allowing partial curtailment of electricity rather than complete disconnection, which maintains essential household functionalities. This calibrated reduction approach demonstrates an advanced technical and regulatory mechanism designed to uphold critical energy access while managing shortfalls or delinquencies.

Australia, meanwhile, maintains minimum debt thresholds—currently set at AU$500—before considering disconnection, while successfully avoiding the deployment of prepayment meters that often induce self-disconnection. Prepayment meters, prevalent in some jurisdictions, require consumers to pay in advance for energy consumption and can inadvertently lead to loss of supply when funds deplete. The countries reviewed consciously eschew strategies that place disproportionate burdens on vulnerable users, indicating a shift toward more compassionate and effective energy management models.

Ireland’s Energy Engage Code represents a seminal advancement in reorienting energy disconnection policies from punitive to supportive paradigms. This code mandates that customers who remain engaged with their energy retailers—through communication or active payment plans—must not be disconnected. Such regulatory commitments transform the consumer relationship from adversarial to cooperative, potentially serving as a blueprint for other nations grappling with disconnection dilemmas. This model reinforces the critical role of sustained customer engagement as a mediator in energy continuity.

Intriguingly, some electricity providers in France and Spain have voluntarily adopted no-disconnection policies, transcending regulatory obligations. These corporate practices illuminate an evolving ethical stance within the energy sector, where maintaining continuous service to vulnerable households is recognized as a social responsibility rather than merely a compliance issue. This voluntary ethos fosters a more resilient consumer relationship and augments societal trust in energy providers.

Despite these advances, critical gaps remain unaddressed globally. The study advocates for extending disconnection prohibitions to residents reliant on prepayment meters and those within embedded networks—settings such as apartment complexes or caravan parks—where energy is often purchased through intermediaries lacking regulated safeguards. Embedded network consumers frequently face heightened disconnection risks due to opaque supply arrangements and limited regulatory oversight, intensifying their vulnerability. Addressing these deficiencies is paramount in realizing universally equitable energy access.

The study’s findings resonate profoundly against the backdrop of surging energy prices and the European Union’s directive to fully protect vulnerable and energy-poor customers from electricity disconnection. The rising cost of energy disproportionately impacts low-income households, magnifying the social urgency of robust disconnection safeguards. The European models examined provide a strategic framework that can be adapted and fortified to confront these ambient challenges while maintaining market stability.

Lead researcher Associate Professor Nicola Willand articulates that “ending harmful disconnections is a policy choice,” affirming that market operations need not be shackled by historically entrenched practices that permit energy loss for non-payment. Governments and regulators possess the agency to architect frameworks balancing consumer rights with commercial sustainability. This insight shifts the narrative from inevitability to proactive policymaking, signaling a paradigm shift in energy governance.

The research’s robust literature review methodology synthesizes cross-national policy insights, demonstrating that stronger protections are not only practical but effective in mitigating the myriad harms associated with disconnection. These protections ensure continuous access to essential energy services, enhancing public health, financial wellbeing, and social stability. By foregrounding empirical evidence, the study offers policymakers actionable intelligence that aligns social equity with market dynamism.

Importantly, the study spotlights avenues for enhancing and adapting existing European safeguards, suggesting that tailored policy innovations could serve global needs. The adaptability of these models underlines the potential for cross-jurisdictional learning and policy harmonization aimed at eliminating disconnections universally. As energy markets evolve, integrating consumer-centric protections will be vital to sustaining trust and preventing exclusion.

In conclusion, the research sets forth a compelling case for reframing energy disconnection policies away from punitive withdrawal towards inclusive, sustainable frameworks. Protecting vulnerable energy consumers embodies a confluence of ethical responsibility, practical policy design, and market stability. As countries worldwide confront escalating energy challenges, the lessons derived from France, Spain, Ireland, and Australia offer an indispensable roadmap toward compassionate, resilient energy systems that uphold the fundamental human right to energy access.

Subject of Research: Not applicable

Article Title: Balancing rights and markets: Towards a typology and critical review of residential electricity disconnection prohibitions in France, Spain, Ireland and Australia

News Publication Date: 5-Dec-2025

Web References:
https://doi.org/10.1016/j.erss.2025.104485

References:
Willand, N., et al. (2025). Balancing rights and markets: Towards a typology and critical review of residential electricity disconnection prohibitions in France, Spain, Ireland and Australia. Energy Research & Social Science, DOI: 10.1016/j.erss.2025.104485.

Keywords: electricity disconnection, energy consumer protection, vulnerable households, energy markets, social equity, energy policy, prepayment meters, embedded networks, energy affordability, energy access, competitive markets

Tags: Australia electricity disconnection statisticscompetitive energy market dynamicsenergy disconnection policiesequitable energy access initiativesEuropean energy protection measuresinternational collaboration in energy policymarket stability and consumer rightsmental health impact of energy lossnon-payment electricity disconnectionsprotective policies for electricity consumersRMIT University energy researchvulnerable households energy access
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