Government must wipe energy debts – shopping around for cheaper energy won’t help
Only 42% of the 132,000 customers on a hardship plan with their energy company are able to repay more than they use
Organisations and community members are invited to sign the open letter to prime minister Anthony Albanese and energy minister Chris Bowen. Visit the Stop the Bill Shock website to add your name: stopthebillshock.org/letter
MEDIA RELEASE | 13 MARCH 2025
The Antipoverty Centre is repeating its call for the government to wipe energy debt for 332,000 customers as the Australian Energy Regulator announces price hikes of 5–10% due to begin in July 2025.1 Antipoverty Centre activists joined the Stop the Bill Shock campaign in December, calling on energy companies to provide relief to customers, but retailers have failed to act.
For background on the strain energy debts are placing on welfare recipients and other people on low incomes, see the Antipoverty Centre’s January 2025 report Desperate for Relief: bit.ly/DesperateForRelief
Key statistics from the December 2024 Australian Energy Regulator annual markets report:
131,746 people with an energy debt were in a hardship program (an increase of 37.8% on 2023, which was a 30% increase on 2022 figures) with the average debt amounting to $1,687.
52.3% of all people in a hardship program have a concession, generally meaning they receive an income support payment from Centrelink.
41.9% of people on a hardship plan have higher electricity costs in each billing period than the amount they are able to repay as part of their plan. This is an increase of 64% on the previous year.
Quotes attributable to Antipoverty Centre spokesperson and JobSeeker recipient Jay Coonan
Today’s news about price hikes for electricity is devastating for people on low incomes, most of whom are unable to access options such as rooftop solar to reduce our bills.
Tens of thousands of welfare recipients, who are already using as little energy as they can, are struggling with huge energy debts and cannot get ahead.
Suggesting that people can “switch to better plans” to deal with the burden of rising energy costs shows that Minister Chris Bowen is out of touch with the daily reality for people in poverty.2
You can’t just shop around for a better deal when you are trapped in debt.
Price gouging energy companies must be reined in to relieve pressure for everyone, but first the government must take urgent action to wipe energy debts so people are not locked out of accessing cheaper plans.3
Media contact: 0403 429 414 / media at antipovertycentre.org
Crisis support and counselling services
If you need support you can seek guidance, counselling or crisis help from the below organisations or talk to someone you trust.
Suicide Call Back Service – general: 1300 659 467
Roses in the Ocean – peer support: 1800 777 337
SANE Australia – general: 1800 187 263
13YARN – for First Nations people: 13 92 76
National Counselling and Referral Service – for disabled people: 1800 421 468
Headspace – for young people: 1800 650 890
QLife – fo LGBTQIA+ people: 1800 184 527
Full Stop – for people who have experienced sexual harassment and assault: 1800 385 578
Embrace Mental Health – multilingual service: embracementalhealth.org.au
MensLine – for men: 1300 789 978
Brother to Brother – for First Nations men: 1800 435 799
See today’s ABC news report: abc.net.au/news/2025-03-13/power-bills-rise-as-aer-lifts-benchmark-price/105040808
See today’s statement from Minister Chris Bowen: minister.dcceew.gov.au/bowen/media-releases/draft-default-market-offer-confirms-need-more-renewables-energy-grid-bring-down-bills
See December 2024 report from the Australia Institute on AGL and Origin price gouging: australiainstitute.org.au/report/price-gouging-agl-and-origin/