The move many energy customers are doing to avoid bill shock

Cash-conscious households are changing the way they pay their bills to avoid getting hit with massive bills each quarter. Here’s how it could work for you.

Cash-conscious households struggling with soaring energy costs are turning to more frequent repayments to cope with their bills.

New figures from some of the nation’s largest energy retailers found customers are shying away from old-fashioned quarterly bills and instead opting to pay their accounts more frequently.

EnergyAustralia figures showed a majority of customers using the company’s regular payment plan options were paying their bills fortnightly (64 per cent), compared with monthly (20 per cent) or weekly (16 per cent).

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Data at rival company Origin found of all customers on monthly billing, 69 per cent are in Victoria.

Nationally, about one in five Origin accounts for electricity, gas and serviced hot water are now paid monthly.

Energy customers are turning to more frequent billing options to help reduce the financial pain.

Latest statistics from the Australian Energy Regulator found electricity prices soared 56 per cent in the 10 years to June 30 last year. And gas price increases are not far behind, rising by 46 per cent during the same time frame.

Origin spokesman Stuart Osbourne said paying more frequently helped many customers who are struggling to minimise the impact of hefty bills.

“Paying monthly makes budgeting easier by allowing them to make smaller, more regular payments for energy like they do for other services such as phones and internet services,” he said.

“If customers are having troubles paying their bill they should contact us to discuss ways we can help.”

In many cases energy customers are set up on quarterly electricity bills but with most retailers they can choose more frequent payment options.

Paying more frequently helps customers who are struggling to minimise the impact of hefty bills.

Financial Counselling Australia’s executive director Fiona Guthrie said it was good to see retailers offering more frequent payment plans to reduce quarterly bill shock.

“It’s a good idea for customers to match their expenditure to their income, particularly for big lumpy bills like energy that can come every quarter,” she said.

“You don’t really know how big or small a bill is going to be so paying it in smaller bites makes a lot of sense.”

EnergyAustralia’s chief customer officer Chris Ryan said “good retailers will offer different plans and options to suit different needs.”

The company provided individual and personalised plans and support, he said.

Altina Energy spokesman s Jim Galvin said their customers have told them that “receiving quarterly bills can make it difficult to manage their household budgets”.

Originally published as The move many energy customers are doing to avoid bill shock