Power rip-off: Soaring energy prices crippling Victorian families’ household budgets

SOARING energy prices are crippling Victorian household budgets as families go without fresh food and shut down parts of their homes to stay afloat.

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SOARING energy prices are crippling Victorian household budgets as families go without fresh food and shut down parts of their homes to stay afloat.

Half of all Australian households are being ripped off up to $587 a year on their power bills by sneaky companies who roll their customers on to more expensive deals after luring them with discounted offers.

New modelling shows the average Victorian household, which was automatically transferred to a higher contract in 2016, paid at least $278 more for power in the past year after their discounted offer expired.

Lured by lower prices, consumers often signed up to market retail contracts before being swapped to higher standard-priced contracts after 12-24 months when the deal ran out. Some businesses are being hit with up to 50 per cent increases in electricity prices.

And a government survey released last week showed the typical Australian family was taking home less money than it was in 2009.

Today, the Sunday Herald Sun begins a campaign to get a fair go for Victorians drowning in the sea of never-ending bills.

Isobel, 3 and sister Charlotte, 1, aren't weighed down by house bills but their parents Nick and Sarah feel the pinch. Picture: Jason Edwards

Our campaign comes as the heads of seven large energy retailers, including EnergyAustralia, Origin Energy and AGL will be forced to explain the hefty price hike when they meet with Prime Minister Malcolm Turnbull in Canberra on Wednesday.

The Brotherhood of St Laurence recounted the pain felt by average Victorians.

Its energy spokesman, Damian Sullivan, said a recent report into power affordability, delivered with ACOSS, revealed everyday Victorians were in dire trouble.

“We found so many first-hand accounts of people who are struggling to pay their energy bills,” he said. “People go without hot water and won’t use their heater at night, instead they’ll just go to bed early.”

Mr Sullivan said everyday families were feeling the pinch.

“It really is across the income spectrum … people on lower incomes of course but middle incomes too,” he said.

“One of our recommendations includes a minimum efficiency standard for properties because poorly fitout rental homes are really costing tenants.”

Elisa with her kids Emily, 3, and Luke, 5, and husband Dennis. Picture: Alex Coppel

Mr Sullivan said Victoria had the highest number of electricity disconnections in Australia and had continued to grow over the past decade.

Victorian Chamber of Commerce and Industry chief Mark Stone said some of his members were this year facing “30 to 50 per cent increases”.

“One of our university members has had a $12 million increase, another university member is about to come off contract and is very concerned about what the new prices will be,” Mr Stone said.

Victoria Council of Social Service chief Emma King said families should not be forced to go through winter afraid to use heaters. “Allowing these insane prices to continue, without doing everything we can to help people, is cruel and inhumane,” she said.

For Nick La Galle, soaring gas prices are putting more strain on a family budget already under stress.

“Gas used to be cheaper than electricity but now I think it’s more expensive,” he said.

“We have a family of four … Older relatives are worried. It’s bad enough as it is but on top of other rising costs, our childcare fees have increased by 9 per cent. It becomes really difficult to manage the cost of living.”

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