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Victorians unable to pay energy bills, access hardship payments under mounting cost of living pressures

Vulnerable Victorians are crying out for help as bills for gas, electricity and water mount — but millions aren’t claiming power rebates and concessions they are eligible for.

Victorians are in desperate need of assistance as household bills grow and they struggle with the cost of living crisis.
Victorians are in desperate need of assistance as household bills grow and they struggle with the cost of living crisis.

The number of struggling Victorians urgently seeking help to pay their energy bills is soaring as vulnerable families are hit with towering gas, electricity and water bills.

People at risk of getting into debt with their energy retailers are crying out for help, with complaints about hardship payments rising by more than 500 per cent in the April to June quarter compared to the same period last year.

The alarming new figures, released by the Water and Energy Ombudsman, found the number of Victorians submitting complaints about high bills jumped by 22 per cent compared to the same quarter last year.

And consumers having trouble accessing payment difficulty entitlements jumped from 25 to 160 — a whopping 540 per cent increase.

The number of Victorians urgently seeking help to pay their energy bills is soaring. Picture: NCA NewsWire
The number of Victorians urgently seeking help to pay their energy bills is soaring. Picture: NCA NewsWire

Ombudsman Catherine Wolthuizen said the number of associated complaints had been “rising steadily since retailers raised prices in June last year”.

“This year-on-year increase is consistent with a strong affordability theme in our caseload,” she said.

Recent data from the Essential Services Commission also showed a surge in payment assistance and tailored assistance since June last year, as well as people commencing hardship payments.

The number of customers accessing tailored assistance for gas supply in between January and March this year surged by 17 per cent compared to the same time last year, while the number of Victorians applying for hardship payments — known as Utility Relief Grants — rose by 28 per cent for electricity and 38 per cent for gas.

Consumers are facing an onslaught of challenges at accessing difficulty entitlements. Picture: Supplied
Consumers are facing an onslaught of challenges at accessing difficulty entitlements. Picture: Supplied

Victorian Council of Social Service chief executive Juanita Pope said it was good news that more Victorians are learning about the concessions they’re entitled to.

But said that retailers should be “doing all they can to help people learn about discounts and supports, and apply successfully.”

“Studies indicate 14 per cent of energy users aren’t claiming a concession they could be,” she said.

“We need to make sure the application processes for concessions and payment difficulty supports are clear and easy to follow.

Opposition spokesman for Energy David Davis said it was “no wonder” Victorians were feeling the squeeze.

“Victorian Labor has increased taxation and charges on Victorians, squandered more than $40 billion on project cost overruns, allowed massive surges in gas and electricity prices: it is no wonder the pips are squeaking, it is no wonder the pressure is on everyday Victorians,” he said.

Millions of Aussies aren’t claiming a concession they could be, according to officials.
Millions of Aussies aren’t claiming a concession they could be, according to officials.

A government spokesman said Victoria had the strongest consumer protections in the nation.

Since 2019 energy retailers have been required to tell customers regularly on the front page of their bill whether they’re on the best energy plan and how much they could save by switching.

“We know many Victorians are struggling with cost of living — it’s why we’ve invested $3.75 million in the Energy Assistance Program, which provides one-on-one energy advice for customers struggling with bills, helping them access discounts and hardship programs that they’re entitled to,” he said.

Original URL: https://www.heraldsun.com.au/news/victoria/victorians-unable-to-pay-energy-bills-access-hardship-payments-under-mounting-cost-of-living-pressures/news-story/b4791367920045682699d75fe9dbba2a