The rising number of Australian households struggling to pay electricity bills has emerged as a critical concern, with an escalating number seeking support through hardship programs. The major energy retailers in the country have noted a substantial surge in this trend, even exceeding the levels seen during the peak of the COVID-19 pandemic.

On 1 July, retail electricity tariffs in several states experienced an average increase of over 20%, leading to a significant escalation in customer bills. A Senate committee discussing the cost of living has revealed that tens of thousands more people are now accessing hardship relief, driven by climbing interest rates and soaring energy costs.

Charitable services such as Foodbank WA have seen a 45% increase in their customer base within a year, underscoring the severity of the cost-of-living crisis. Energy Australia reported that the number of people accessing their hardship program has doubled since mid-2022, establishing a direct correlation with rising interest rates. Currently, around 45,000 of their customers are enrolled in this program, amounting to nearly AUD 30 million. Other companies like AGL Energy and Origin Energy have also witnessed significant upticks in customer participation in their hardship programs.

The energy companies have attributed the heightened financial strain on households to increased wholesale energy costs, influenced by geopolitical tensions and supply issues. They predict spending millions on support measures and emphasize that boosting energy supply is a key strategy to drive prices down. The effectiveness of the government’s recent market interventions in reducing energy prices remains uncertain at this time.

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