Victorian households feeling the price pinch
Victorian households battling with electricity and gas costs have racked up a staggering debt – and there’s more price pain to come.
VIC News
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Crippling electricity and gas costs have left Victorian households owing almost $80 million in unpaid energy bills.
The staggering debt comes as most residents are set to be hit with price rises this month.
Vinnies spokesman Gavin Dufty said households were increasingly feeling the pinch from a range of higher expenses, and were seeking relief such as payment extensions.
“The cost of putting food on the table, paying the mortgage or rents, getting the kids off to school and keeping the lights on, combined with flatlining wages growth, has put the squeeze on households and pushes them to seek assistance,” Mr Dufty said.
Latest data published by the state’s energy regulator reveals customers getting help to deal with costs had outstanding debt totalling $77 million at the end of the financial year.
Customers on plans to reduce debt owed an average $969 for electricity and $752 for gas.
Essential Services Commission chairperson Kate Symons said: “More people are getting help earlier than ever before, energy companies now have to assist customers in financial stress to help them avoid getting into debt or put in place affordable payment arrangements.
“With the payment difficulty framework we are now able to get a clearer picture of how energy companies are helping Victorians manage energy bills and it provides safeguards to ensure that disconnection of a customer’s energy supply is only ever a measure of last resort.”
New rules from January 1 last year expanded help available to people struggling to stay on top of energy bills.
An average 141,540 electricity and 106,406 gas customers got some form of bill payment help from retailers from January to June last year.
That assistance was both for those who already owed at least $55, and also for customers who felt under pressure and wanted to avoid getting into arrears.
Energy price increases this month will add as much as $164 to average annual electricity bills, depending on retailer. Gas costs will climb by up to $63 on average.
All consumers can ask for “standard assistance” such as paying smaller amounts more often, and delaying a payment.
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If a customer misses a bill and owes more than $55, retailers must contact them and offer “tailored assistance” such as realistic repayment plans and information on how to reduce energy use.
On average almost 136,500 electricity and gas customers combined received “standard assistance” over the six months to June.
That was on top of almost 111,500 on “tailored assistance”. More than half of those indicated they couldn’t afford ongoing costs.