The 2015-16 Australian Energy Regulator (AER) report on the performance of the retail energy market indicates more households are doing it tough when it comes to electricity bills.
The number of customers with an energy debt who entered a hardship program increased during the period.
This was particularly prevalent in South Australia, where the number of electricity and gas customers on hardship programs increased by around a third. The state now has the unpleasant distinction of having the highest number of customers in these programs; at 1.8% (electricity). Other states’ and territories’ hardship program participation is around 1%.
While the proportion of customers with electricity debt has generally decreased nationally, in most jurisdictions the average debt of customers not participating in hardship programs has remained static.
Some may be quick to blame renewable energy for high electricity prices in SA, but South Australia has had comparatively higher costs than elsewhere in the nation for years. This was the case before the first wind turbine started spinning and the first solar panel began harnessing the power of the sun in the state.
The report also indicates the percentage of electricity customers switching retailers over the past six years in Queensland, New South Wales, Victoria and South Australia is flat or has declined. This may be the result of retailers putting more effort into customer retention as AER mentions – or perhaps time-poor people just finding the process too confusing given the number and complexity of offers.
However, there are more tools available now to make the process less vexing, such as the optimistically titled Federal Government website, Energy Made Easy.
“A key way to reduce the cost of energy is to shop around, so it is pleasing to see more people are taking advantage of market offers to save money on their electricity and gas,” said AER Chair Paula Conboy
“Our Energy Made Easy website is a simple, independent and free tool to help consumers compare all generally available electricity and gas offers in their area.”
With regard to complaints, numbers rose in South Australia, New South Wales and ACT; mainly around billing issues. However, with one major retailer taken out of the stats, complaint rates were flatter across most jurisdictions.
The AER says overall energy affordability for 2015-16 is around the same as the previous period. So, in other words – still rather pricey.
While there are already 1.6 million solar power systems now installed throughout Australia, the ongoing high cost of electricity should see many more households installing solar panels in the future; particularly after high summer power bills start hitting mailboxes and inboxes.
The full AER annual report on the performance of the retail energy market 2015-16 can be downloaded here (PDF).
