Invest
Debts, hardship plans for energy bills jump
The Energy Regulator’s annual report has found that electricity and gas debts have increased, while the number of people on hardship programs and being disconnected continues to rise.
Debts, hardship plans for energy bills jump
The Energy Regulator’s annual report has found that electricity and gas debts have increased, while the number of people on hardship programs and being disconnected continues to rise.
The Australian Energy Regulator has drawn attention to the rising levels of energy debt and individuals being placed on hardship programs.
According to the regulator’s end of year report, although the number of customers incurring debts has declined over the 2017-18 financial year, the size of the debts acquired is increasing.
This has coincided with a rise in disconnections over the year to date.
127,720 (or 2 per cent) of electricity residential customers and 58,498 (or 2.8 per cent) of gas residential customers experienced debt this year.
Although this signifies a decrease in the number of customers in debt compared to last year, the average debt rose significantly to between $730–$1,525 and $400–$630, respectively.
This is up from between $500–$830 for electricity and $320–$440 for gas in the 2016-17 financial year.
“While there are less customers repaying debt, the amount of debt those customers are paying is increasing, which signals that electricity is less affordable for some,” the report stated.
The report found that more than half of all electricity payment plans and half of all gas repayment plans were cancelled during the year, suggesting customers in debt are failing to make payments in the required time frames.
Alongside this, the majority of states and territories saw an increase in the number of customers on formal hardship programs over the year.
Only Queensland and NSW did not see an upsurge.
In 2017-18, 68,832 (1.1 per cent) of electricity customers and 13,701 (0.7 per cent) of gas customers are on hardship programs.
This indicates the number of electricity customers on hardship programs rose by 30,000 in the year, while gas customers in hardship programs increased by 43,000.
The average debt on entry into hardship programs also increased, with electricity customers owing an average $1,146 and gas customers an average $734.
There is also a rise in the number of customers accruing large debts of over $2,500, with 4,257 more electricity customers and 200 more gas customers obtaining hardship assistance of debts of this magnitude.
As a likely result of these trends, electricity disconnections rose nationwide in 2017-18 by more than 7,000 customers to over 70,000 households.
Gas disconnections also increased slightly from the previous financial year, with about 1,100 more customers being cut off.
Queensland experienced the highest rate of residential electricity disconnections (27,910), while South Australia saw the most gas disconnections (4,362).
Commodity
2021 to kick off 3-year-long investor heaven, property investors predict
Property investors unanimously agree that 2021 will kick off a three-year favourable investor environment with strong price growth. ...Read more
Commodity
Joining the buyers club: How to build a hefty passive income in your 20s or 70s?
“2021 is going to be the year of low stock levels, low interest rates, increased confidence and the chase for yield as people look to replace their incomes.” ...Read more
Commodity
How this investor entered the market 4 years after the last boom
Although he looked to capitalise on Sydney’s property boom a decade ago, luck would have it that Rizul Makkar would only begin to build his property portfolio four years later. ...Read more
Commodity
Electricity price hikes are coming, expert warns
The opening of Santos’ Narrabri gas pipeline will likely see consumers pay a higher price for gas, an expert has said. ...Read more
Commodity
Morrison’s technology roadmap slammed
The latest Coalition energy initiative has been slammed by a union body, which claimed that it is a substitute for a coherent national energy climate policy. ...Read more
Commodity
What’s so precious about metal?
As countries continue to battle the COVID-19 health pandemic, investors are turning to the safe havens of precious metals — a trend that’s likely to continue, according to an expert. ...Read more
Commodity
Global chocolate consumption melts on COVID-19 outbreak
The COVID-19 crisis has taken a bite out of chocolate sales, collapsing the price of cocoa, according to new research. ...Read more
Commodity
What’s up with the price of gold?
In today’s negative yield environment, buying gold to diversify and decrease market volatility “has never been so favourable” – and it’s why the price of gold is peaking, according to a mark...Read more
Commodity
2021 to kick off 3-year-long investor heaven, property investors predict
Property investors unanimously agree that 2021 will kick off a three-year favourable investor environment with strong price growth. ...Read more
Commodity
Joining the buyers club: How to build a hefty passive income in your 20s or 70s?
“2021 is going to be the year of low stock levels, low interest rates, increased confidence and the chase for yield as people look to replace their incomes.” ...Read more
Commodity
How this investor entered the market 4 years after the last boom
Although he looked to capitalise on Sydney’s property boom a decade ago, luck would have it that Rizul Makkar would only begin to build his property portfolio four years later. ...Read more
Commodity
Electricity price hikes are coming, expert warns
The opening of Santos’ Narrabri gas pipeline will likely see consumers pay a higher price for gas, an expert has said. ...Read more
Commodity
Morrison’s technology roadmap slammed
The latest Coalition energy initiative has been slammed by a union body, which claimed that it is a substitute for a coherent national energy climate policy. ...Read more
Commodity
What’s so precious about metal?
As countries continue to battle the COVID-19 health pandemic, investors are turning to the safe havens of precious metals — a trend that’s likely to continue, according to an expert. ...Read more
Commodity
Global chocolate consumption melts on COVID-19 outbreak
The COVID-19 crisis has taken a bite out of chocolate sales, collapsing the price of cocoa, according to new research. ...Read more
Commodity
What’s up with the price of gold?
In today’s negative yield environment, buying gold to diversify and decrease market volatility “has never been so favourable” – and it’s why the price of gold is peaking, according to a mark...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
