More Queenslanders apply for electricity hardship payment programs

THE number of Queenslanders on electricity payment hardship programs to avoid having their power switched off is soaring.

The cost of electricity is becoming prohibitive for many families.

THE number of Queenslanders on electricity payment hardship programs to avoid having their power switched off is soaring.

And consumer advocates warn that the looming long, hot summer will push many more families into debt as they are forced to fire up airconditioning to stay cool and safe.

Figures from the Australian Energy Regulator show that at the end of June, 18,423 ­residential customers in Queensland were on hardship programs run by electricity companies.

Airconditioning is a luxury that few can afford to run as power bills get out of hand.

That was a 16 per cent jump in just three months – and nearly double the 9402 customers two years ago. The average amount owed is $1001.

But the formal hardship figures are just the tip of the iceberg. The AER says another 2.5 per cent of customers – 53,000 – also have power bill debts, owing an average $502.

More than 21,000 Queenslanders had their power disconnected for unpaid bills in 2015-16, the second highest rate in the country.

“The cost of electricity is simply too expensive for many, many people to afford,’’ Queensland Electricity Users Network co-ordinator Jennifer Brownie said.

She said people were using portable camping gas stoves to cook, living off baked beans and being taken to hospital with heat exhaustion rather than turn on aircon and fans, while the State Government used electricity as “a cash cow” taking $3.2 billion from Energex and Ergon.

The Palaszczuk Government this week announced that its $330-a-year power rebate scheme – currently available to pensioners, veterans and seniors – will be extended in January to include Commonwealth Health Care cardholders.

The number of disconnections for debts fell by 8000 – 37 per cent – in 2015-16. Pic: iStock.

That will increase the number of recipients by 157,000 to 668,000 – one in three of all residential consumers.

Ms Brownie said while they welcomed the move, the fact that a third of all Queenslanders needed rebates to afford power was an indictment in itself and many people struggling on low incomes would still miss out.

Energy Minister Mark Bailey said rules requiring all electricity retailers in Queensland to have approved hardship policies meant customers needing help were better identified for assistance rather than being cut off.

The number of disconnections for debts fell by 8000 – 37 per cent – in 2015-16, compared to a record high the ­previous year.

“This demonstrates the price stabilisation delivered by the Palaszczuk Government is having an effect, making it easier for households to manage their electricity costs,” he said.