The Australian Energy Regulator (AER) has released its Annual Retail Markets Report 2023-24 analysing key consumer outcome metrics and data from energy retailers.
According to the report, the proportion of electricity customers participating in energy retailer hardship programs increased from 1.4% to 1.9%, with more customers initiating entry to a hardship program compared to last year.
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The average debt for those in hardship programs has decreased by 4.3% for residential electricity customers and 4.9% for residential gas customers, but the average debt on entry to these programs increased by 23.7% for electricity and 33.5% for gas.
AER Board member Jarrod Ball says, “Energy rebates and concessions from federal, state and territory governments have helped support some households with energy affordability, with low-income households spending proportionally less of their annual household income on energy bills in 2023-24 compared to the previous year,” he said.
“The proportion of residential customers with energy debt of more than 90 days has also stabilised at around 2.9%. However, many consumers continue to struggle with energy costs, as indicated by the total number of customers in debt and in hardship programs.”
The number of residential electricity customers on payment plans but not in hardship programs was also slightly higher, up to 1.9%, while the proportion of gas customers remained stable at 1%. Around one-third of customers with debt of more than 90 days are neither on payment plans nor in hardship programs and, therefore, may not be getting assistance that they need.
Median market offers for residential electricity customers increased in all jurisdictions in 2023-24, however, prices fell in most jurisdictions on 1 July 2024.
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Billing related issues were a key driver in a sharp increase in calls and complaints to retailers and ombudsman schemes during the period.
“Between July and September 2024, we saw median market offer prices fall by up to 4% so it’s vital that all customers shop around regularly to ensure they are on the best energy plan for their individual circumstances,” Ball said.
