Debt collectors sent after Queenslanders as power bills skyrocket

Energy companies have sent debt collectors to more than 12,000 Queensland households in the first three months of the year, shock new data reveals.

Energy companies have sent debt collectors to more than 12,000 Queensland households in the first three months of the year, shock new data reveals.

The number of Queenslanders on hardship programs with their power retailer also rose by a whopping 15 per cent – the highest increase in the country.

Social services groups are urging people struggling to pay their bills to talk to their retailer about payment plans, as costs rise for families from groceries to rent.

The Australian Energy Regulator’s latest report shows the financial squeeze impacting Queenslanders right now, with more than 38,000 households having a debt with their power retailer of an average amount of $795.

Many Queenslanders are struggling to pay electricity bills.

But it is a slight reduction of the amount during the same period last year, of 40,000 households, indicating government rebates have helped.

The data was released ahead of July 1 when average electricity prices are set to rise by 21.5 per cent in southeast Queensland and more than 28 per cent in regional Queensland.

There were 19,578 Queenslanders on electricity retailer hardship programs in the first quarter of the year, or 0.91 per cent of households, up from 16,989 Queenslanders the previous quarter.

Those on hardship programs had an average debt of $1351, an amount which had increased by more than $100 in the past year.

The AER report noted that retailers referred fewer customers to credit collection in 2022 due to natural disasters, particularly in the June and September quarters.

“Since then, credit collection activities have recommenced, likely driving the increase in referrals since last quarter,” the report stated.

There were 12,193 Queenslanders referred to debt collectors by power retailers in the March quarter, compared to 10,700 in the previous three months.

St Vincent de Paul Queensland CEO Kevin Mercer said it was possible that the state government’s power bill rebates had helped reduce the number of Queensland households in debt to energy providers and that the upcoming rebates would also assist many people.

St Vincent de Paul Queensland CEO Kevin Mercer

“Queenslanders are already feeling the pinch everywhere – from their homes to the supermarket to the fuel bowser and beyond. Any support for those financially struggling is welcome, including further electricity rebates,” he said.

“With around 300,000 Queenslanders already spending more than 30 per cent of their income on rent alone, once fuel and groceries are accounted for, there is often very little left for utility bills.”

Mr Mercer said the increase in Queenslanders on hardship programs could be due to greater awareness of them, as rising electricity prices make the news.

“For Queenslanders struggling with electricity bills, it really is worth talking to your provider, seeing what hardship or payment plans they provide or seeing if you are currently on the best plan available for your home,” he said.

“It can be an overwhelming or even embarrassing prospect for many, but there is nothing wrong with asking for help – these programs exist for a reason.”

Originally published as Debt collectors sent after Queenslanders as power bills skyrocket