Victorian households struggling with unpaid bill debt as high as $33k

Desperate households unable to cope with electricity, gas and water costs have unpaid bills as high as $33,000, with the most stressed customers using twice as much as they can actually afford to pay. But there’s help at hand.

Rising bill debt is crippling some Victorian households.

EXCLUSIVE: Desperate households unable to cope with electricity, gas and water costs have unpaid bills as high as $33,000.

Costs for Victoria’s most stressed customers are twice as much as they can actually afford to pay, a report reveals.

Ballarat, Casey, Greater Bendigo, Melton, Brimbank, Darebin and Hume municipalities have the highest rates of financial hardship reported to the state’s Energy and Water Ombudsman.

Ombudsman Cynthia Gebert said illness, relationship breakdown, unemployment and family violence were among factors that could lead to such vulnerability.

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Some Victorian households are using $100 worth of energy or water while only able to afford $45.

Startling new figures reveal a quarter of all credit investigations that the ombudsman’s office closed from July to December last year involved customers who couldn’t afford to pay for their use.

“Some customers consume energy and water at an average of $100 per fortnight while their average fortnightly capacity to pay is only $45,” Ms Gebert said.

“While many such customers have negotiated payment plans with their retailer, the plans are often beyond their means and customers quickly accumulate debt.”

Many of the most vulnerable customers, who on average owed $3286, were unable to meet costs despite getting concession card discounts.

Ms Gebert said it was hoped new protections that have been in place since January this year would better help people manage.

Under the revised rules, any customers with payment difficulties must be offered a payment plan.

Those with a debt exceeding $55 must be offered tailored assistance to help reduce their arrears. Retailers must also give details about government grants and concessions, and help reduce energy use and costs.

In total, EWOV closed 730 credit investigations involving customers complaining about payment difficulties, debt collection, disconnection or restriction from July to December.

Of those, 174 were identified as financially vulnerable consumers unable to pay their utility bills.

A Victorian Council of Social Service report last year estimated 180,000 households statewide had persistent problems paying energy bills.

Those in entrenched energy hardship included households with low incomes, children, long-term health conditions or a disability, and poor mental health.