Report calls for energy debt amnesty
The Antipoverty Centre is calling on energy retailers to wipe debt from their books using their massive greedflation profits
Energy retailers are being called on to wipe debt for those unable to pay, with a new snapshot showing how companies like Origin and AGL are posting eye-watering profits while an increasing number of their customers are on energy hardship plans.
Included below: key statistics and comments from Antipoverty Centre spokesperson Jay Coonan.
Hardship plans aren’t working for people who can’t afford to pay and they’re trapped in a cycle of debt for an essential service. This means people could be prevented from changing retailer and switching to a cheaper plan, while being plagued with unnecessary financial stress and harassed by unscrupulous debt collectors.
For many, the scale of their debt, combined with low welfare payments, health needs and poor quality housing all contribute to increased electricity usage, meaning for many they will never be able to easily manage their bills.
The Antipoverty Centre is calling on the government to create stronger regulations pulling energy retailers into line and to stop energy debt from happening in the first place.
The full report developed by the Antipoverty Centre can be found here: bit.ly/DesperateForRelief
Quotes attributable to Antipoverty Centre spokesperson and JobSeeker recipient Jay Coonan
It would be an easy thing for these retailers to wipe the debt from their spreadsheets. Bringing relief to people who are under enormous pressure is that simple.
Hardship programs clearly aren’t working if you’ve only got 30% of people paying off their debt.
The other 70% are trapped in an endless cycle of energy debt, unable to move providers to a cheaper option.
Consumers are constantly told to shop around for better deals to reduce their prices. But if you are in energy debt this ability to better your situation is often stripped from you.
People on low incomes get sick and die at higher rates when they are unable to adequately heat or cool their home. We can’t afford for people to not turn on their air conditioning or a fan and put their health at risk just because energy companies are putting their profits before people – especially as we many are dealing with a relentless summer.
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Key statistics
Click here to download a more in-depth background document containing additional statistics and links to all sources for data included in this section.
The Antipoverty Centre has conducted an in-depth survey of 417 people from across the country, which was distributed by community sector organisations and found:
20% are behind on their bills, with 58.6% of those being behind on electricity, gas or both.
- 49.5% of respondents said they have energy costs related to managing their health condition or disability.
- 65.2% said their home gets either too hot, too cold or both.
- 22.1% of people who have air conditioning or a heater available said they are rarely or never able to afford to turn it on when they need it.
The number of people in energy debt has increased with both major retailers to June 2024. The number of people in hardship plans with AGL is 27,471, up 68% since the last financial year. While Origin has 98,000 customers on hardship plans – up 38%. AGL has reported that the average debt per customer in hardship is $2,025. However, Origin has not disclosed this figure. This comes at a time when the two biggest energy retailers posted combined profits of $3 billion over financial years 2023 and 2024.1
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- According to the Australian Energy Regulator, Origin and AGL hold a combined 48% market share. See: aer.gov.au/publications/reports/performance/annual-retail-markets-report-2022-23 ↩︎