New data shows hundreds of thousands are struggling with energy debts

Stop the Bill Shock Media Release

New AER data shows hundreds of thousands are struggling with rising energy debts as Australians demand more government intervention to lower bills.

An alliance of energy justice advocates is calling for urgent government intervention to wipe-out the energy debts of struggling households, as new data shows almost 1 in 20 energy consumers cannot cover the full cost of their regular energy bill, as energy companies’ profits continue to soar and the government considers another round of energy bill rebates. Meanwhile, new polling shows the Australian public is fed up with the profiteering of big energy companies and want the Australian government to intervene to lower bills.

New data from the Australian Energy Regulator, released as part of its annual market report, shows that

• 336,615 households were in energy debt last year – a slight increase of 1.4% on the previous year
• Almost 1 in 20 of all energy customers are in some form of energy debt.
• 121,759 households were part of official hardship programs, 39% of them have been in a program for more than 12 months. Of the 150,000 people who exited a hardship program last year 68% were discontinued because they were unable to meet their agreed payment plan and schedule – only 32% had paid off their debt.
• The average value of a household’s energy debt increased by $219 last year – to $1,367
• While the Federal Government’s rebates provided some relief to hardship customers and those with very small debts at the beginning of the year, these were much less impactful in the second half of the year when debts were higher.

Advocates say new AER data confirms what households already know: Australia’s energy price crisis continues to rage on, with more and more people struggling to pay their bills pushed into debt while big energy companies rake in billions of dollars in profit. The update comes as the federal government deliberates whether to renew the Energy Bill Relief Fund rebates for a third consecutive year. The Stop the Bill Shock coalition warns that rebates are not a substitute for fixing the system itself, and that energy debt is a political and corporate choice that governments can act on right now.

The report coincides with new national polling that shows about half of Australians blame profit-seeking energy companies for rising energy bills and want the government to take more action to stop bills from rising even further. The national poll, conducted in October, found:

• 46 percent of Australians say profit-seeking by energy companies is the leading reason energy prices keep rising.
• 83 percent of Australians want the federal government to take stronger action to bring bills down and rein in unfair pricing.

Jay Coonan from Antipoverty Centre said, “The government should be stepping in to stop energy retailers taking the piss. They’ve had it too good for too long and people are sick of paying through the nose while CEO’s make millions and shareholders make off with dividends.

“Energy retailers should be made to spend their billions on bringing down bills, instead of making billions by putting people into debt.”

Nic Seton, CEO of Parents for Climate: “Parents are telling us they’re terrified about the heat this summer. Safe temperatures should be a basic right for every child, yet families are being priced out of staying safe at home while retailers record massive profits. It’s past time the government steps in to protect Australians who expect stronger action to stop profiteering and tackle the root causes of energy debt.”

Farah Chaar from Sweltering Cities said, “Energy costs have been keeping people in a cycle of having to choose between their health and their ability to pay the bills summer after summer. With another season of high temperatures and heatwave risks predicted, it’s time for urgent policy action to curb the cost of staying safe. The government’s own climate risk assessment proves it’s time to put community health first, not profits.”

The Stop the Bill Shock campaign was started by a collective of climate and economic justice organisations working and campaigning to make sure energy bills are permanently lowered and that everyone benefits from and is included in the transition to renewables – not just those that can afford home upgrades.

Stop the Bill Shock is calling on state and federal governments to:

1. Cancel existing energy debts now
2. Bring energy bills down for everyone, for good – by making energy companies pass on more of the savings generated by renewable energy
3. End the debt cycle – with new rules and regulations to make the market fairer and stop the profiteering of energy companies (like standardising Victoria’s new consumer protection rules nationally)
4. Help cut bills for good – by expanding funding and support for home upgrades (solar, insulation, efficient cooling) so families can cut bills for good.

Case studies available include:

• A single mum who prefers to remain anonymous but is currently working and receiving a Centrelink payment for a child who has just turned 18. She is in debt to her retailer and cannot get ahead on her bills and is worried about the loss of income support in the coming months as she is already working and struggling financially.

“Everything impacts and knocks on, I need to know the hours I work are worth something, and knowing if I earn “too much”, for 16 weeks, I am no longer entitled to full bulk billing doctors, dentist etc..”

“I have a huge $2,500 debt for power… I can’t get a handle on it.”

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