Power bill debt passes $420m as Victorian enters the new year

Hundreds of Victorians had their power disconnected after failing to pay their bills, with more than $420m owed across the state.

Victorian households enter the New Year with more than $420m in unpaid electricity and gas bills while the number of customers who have missed a payment is at the highest level since Covid hit.

The alarming debt pile includes $109.5m owned by about 112,500 customer accounts which are either on a hardship payment plan, are in deferral or are held by households who can no longer make a payment.

Disconnections also jumped to close to 500 in November as a moratorium put in place during lockdowns was lifted.

St Vincent de Paul Society policy manager Gavin Dufty said Covid government support and a moratorium on disconnections during lockdowns had greatly eased power bill pressure on struggling households in 2021.

St Vincent de Paul Society policy manager Gavin Dufty is bracing for a surge in demand for its services in 2022 as Covid supports fall away.

But with those supports now gone, the social charity was bracing for a surge in demand for its services in 2022.

“We have already started to see a significant uptick in people seeking our support for general bills including gas, electricity and water,” Mr Dufty said.

The latest data published by the Essential Services Commission shows there is $260m in electricity bills which are either on a hardship payment plan, deferred or in arrears.

This includes $66.2m of debt held by customers who are on a hardship payment plan or in deferral, including 16,929 customers who owe $32.2m – an average of $1,904 each – who cannot make ongoing payments.

Another 295,580 electricity customers who owe $156.4m – an average of $529 each – are in arrears but have not requested hardship assistance.

For gas, there is $163.3m in bills which are either on a hardship payment plan, deferred or in arrears.

Late payments on electricity and gas bills in Victoria is at its highest level since Covid hit.

This includes $43.3m of debt held by customers who are on a payment plan or in deferral, including 13,510 customers who owe $20.6m – an average of $1,526 – who cannot make ongoing payments.

Another 248,877 gas customers who owe $105.8m – an average of $425 each – are in arrears but have not requested hardship assistance.

Essential Services Commission energy executive director Sarah Sheppard said as well as the lift in arrears, another concerning trend was an increase in energy debt levels.

“Average debt levels of these families has risen from around $1600 this time last year to $1900 now and this is just for electricity,” she said.

Ms Sheppard said households having trouble paying their electricity or gas bill should contact their provider as early as possible seek out hardship assistance, including being put on a regular payment plan.

Providers are required to offer customers a hardship payment plan and cannot disconnect someone who is engaging with them about paying off their debt.