Shock rate of power cuts in Victorian in 2023 homes over unpaid bills

The number of Victorians reporting their power has been disconnected for not paying their bills due to rising costs has soared in recent months. 

Zerin Hassan contemplates a recent power bill. Picture: Ian Currie

The number of Victorians reporting their power has been disconnected for not paying their bills has soared 31 per cent during the first two months of this year.

As skyrocketing living costs continue to strain household budgets, new figures from the state’s energy ombudsman reveal Victorians are coming under increasing financial pressure.

But Daniel Andrews and Anthony Albanese say a proposed $426 increase to annual household electricity bills for people on the Victorian Default Offer is still better than it could have been, following opposition claims they had both broken promises to slash prices.

Fears of gas shortfalls during winter cold snaps – which could also drive up prices next year – has also sparked renewed calls from industry for greater investment in gas production.

Victoria’s Energy and Water Ombudsman has experienced a 31 per cent increase in consumers contacting them after being disconnected for not paying their power bills between January and February this year.

The number of Victorians reporting their power has been disconnected for not paying their bills has soared 31 per cent during the first two months of this year. Picture: supplied

Almost three complaints a week were made in January, while four complaints a week were made in February.

Ombudsman Catherine Wolthuizen urged people having trouble paying their energy bills, or worried they might be disconnected to contact their energy provider.

If the issue cannot be resolved they should contact the ombudsman, Ms Wolthuizen said.

“We know this is a challenging time for consumers, businesses and the community, and we are here to help,” she said.

But Consumer Action Law Centre spokesman Luke Lovell said: “I am worried that more Victorians will fall behind with their bills and more households will be cut off, especially as we head into winter”.

Daniel Andrews has hinted at another round of its popular $250 power saving bonus scheme. Picture: NCA NewsWire

“Energy retailers need to do their part by offering their customers all the assistance they are entitled to, including payment plans and help to apply for government grants,” Mr Lovell said.

More than 450,000 households and businesses on the Victorian Default Offer are set to be hit with respective annual power bill rises of $426 and $1738, after the Essential Services Commission released its draft decision on Wednesday.

But the Victorian Premier said the draft figure was “still better than the offer it replaced” in 2019, adding broken down coal-fired power plants were driving up prices.

The Prime Minister blamed the war in Ukraine for the “significant” 31 per cent rise in the draft default offer, but said it would have been greater if his government had not intervened with a price cap in December.

New figures from the state’s energy ombudsman reveal Victorians are coming under increasing financial pressure. Picture: file image

Mr Albanese, who was out campaigning in Aston on Thursday afternoon, said $1.5bn would be provided in the May federal budget to “lower those bills to give some energy price relief”.

Mr Andrews also hinted at another round of its popular $250 power saving bonus scheme, with the fourth round of one-off payments for households that compare their energy provider online commencing from March 24.

He said he was not worried about potential shortfalls this winter because there were “sufficient reserves”, and reiterated the need for a domestic gas reserve.

But Australian Petroleum Production & Exploration Association chief executive Samantha McCulloch said: “We need a clear strategy from governments to promote new supply to avoid shortfalls and put downward pressure on prices rather than ad hoc interventions that do the opposite and undermine investment confidence.”

Resources Minister Madeleine King said the “best possibility for increasing supply” to the east coast was the extension of existing gas fields in Bass Strait, adding it would work with the Victorian government on future exploration permits.