More Victorians accessing assistance to pay energy bills

The Essential Services Commission has published its latest Victorian Energy Market Report for January to March 2023.

The report outlines key compliance and enforcement activities, data on customers experiencing payment difficulties and disconnections, as well as market entry and exits over the reporting period.

Between January and March 2023, 67,413 residential electricity customers accessed tailored assistance to help them pay their bills in March 2023, the highest since 2019, and 55,415 households accessed tailored assistance to help pay their gas bills.

There were also 86,482 utility relief grants credited into customers’ accounts between July 2022 to March 2023 – an increase of 22 per cent compared to the same time last year.

“We understand that rising energy prices increase the burden on consumers, particularly during this cost-of-living crisis,” Chairperson and Commissioner Kate Symons said.

Commissioner Symons said that there are strong rules in Victoria for retailers to offer and provide payment support to customers, which can help alleviate the burden of rising energy costs.

“There are a range of options available for consumers, including payment plans and concessions, rebates, and utility relief grants.”

“We expect retailers to engage with customers who may be experiencing hardship, and we also encourage consumers to contact their retailer early if they need assistance,” Commissioner Symons said.

The Victorian Government offers a range of concessions to eligible households, including Utility Relief Grants of $650 for each utility type over two years, and eligible concession card holders can apply to their retailer for a further 17.5 per cent discount off their gas bills during winter. In addition, Victorian households can take advantage of the Victorian Government’s $250 Power Saving Bonus* by visiting the Victorian Energy Compare website.

The commission further supports consumers facing cost-of-living pressures by holding Victoria’s energy companies accountable for complying with the state’s strong consumer protections.

“We have taken action to ensure retailers follow the energy rules by providing accurate data on the Victorian Energy Compare website, notifying their customers of contract changes, and only disconnecting a customer’s energy supply as a measure of last resort.”

Between January and March 2023, three retailers paid over $740,000 in penalties for allegedly charging customers incorrect rates and allegedly failing to adequately assist customers experiencing payment difficulty.

“These actions protect Victorian consumers by ensuring they receive transparent pricing information, assistance when needed, and access to a reliable energy supply,” Commissioner Symons said.

The report also looks at green energy offers, with many Victorian consumers wanting to support the energy transition and buy ‘green’ energy products.

“Searching and choosing between green energy options is currently quite challenging for energy consumers. Offers are complex, pricing is unclear and commentary on potential issues can undermine trust,” Commissioner Symons said. 

The commission’s research shows that consumers can be paying up to $284 more every year for the same contribution to emissions reduction, depending on the retailer they choose.

*Please note, the Victorian Government Power Saving Bonus closed on 31 August 2023.