South Australian household debts spiral, disconnections rise as power bills skyrocket

Many South Australian households were hit with a 22 per cent increase to their power bills over the past year, again the highest in the country, prompting disconnections and spiralling debt levels.

• SA has the highest power bill in the world
• Power prices up 25 per cent in just one year
• Big electricity savings on the way … in 2021

Many South Australian households were hit with a 22 per cent increase to their power bills over the past year, again the highest in the country, prompting disconnections and spiralling debt levels.

As power reliability and prices solidify as a key Federal Election issue, the Australian Energy Regulator’s annual report confirmed massive increases in bills are hitting the poorest people hardest.

The AER, one of the country’s peak energy bodies, confirmed that SA “has the most expensive electricity in the jurisdictions that we regulate” after spiking again in 2017-18.

About 100,000 households and businesses on standard offers in SA experienced a 22.1 per cent increase, the biggest in Australia. Low-income SA households now spend a crippling 11.2 per cent of their disposable income on electricity, which is also triggering a rise in disconnections.

Many South Australian households were hit with a 22 per cent increase to their power bills over the past year, again the highest in the country, prompting disconnections and spiralling debt levels. Picture: Thinkstock

The report warns that customers who fail to shop around could face an average $3000 bill in the coming year. The report encourages companies to do more for customers doing it the toughest.

“Middle and high income households may have greater capacity to make choices within the home to mitigate overall energy consumption,” the AER finds. “Retailers have an obligation to ensure that customers are provided with concessions where appropriate.

“For vulnerable low-income households, spending more on energy means spending less on other living costs.

Retailers should be working with customers to identify those requiring hardship assistance, confirm that they are on the best tariff available and accessing concessions so that they are able to manage their ongoing billing and charges.”

Customers in SA are most affected by electricity debt, to an average of $1524. In just the past financial year, that figure has risen by $586, from $938.

South Australians are twice as likely than the national average to be on electricity hardship programs.

SA Council of Social Service chief executive Ross Womersley.

State Energy and Mining Minister Dan van Holst Pellekaan.

A total of 10,556 electricity customers were cut off in SA during the year, down marginally from 2016-17.

State Energy and Mining Minister Dan van Holst Pellekaan said the report “outlines in stark detail the human cost of the mess” the new State Government now had to deal with.

“The Marshall Government will continue delivering our plan to make electricity more affordable — including the largest global rollout of home batteries, new grid scale storage, reliable generation and additional interconnection to import and export with NSW,” he said.

SA Council of Social Service chief executive Ross Womersley said concessions for low-income households must rise, and become a percentage of the bill instead of a flat payment. He was sceptical that prices would significantly come down soon.

“There’s a lot of chatter,” he said. “One of the issues that’s been deeply problematic is the toxic discussion about energy policy in this country.”

Mr Womersley said federal payments like Newstart must rise to deal with cost of living.

The Federal Government will today commit $51 million to the AER and ACCC to help deliver more affordable and reliable energy.