Annual Victorian Energy Market Report shows more customers in debt, but fewer disconnections
29 November 2024
The Essential Services Commission today released the 2023-24 Victorian Energy Market Report. The report looks back at the last financial year, providing the community with clear insights into energy businesses’ performance including how they address payment difficulty.
The report shows more customers faced financial stress in 2023-24 than in the previous year. A higher number of customers missed a bill payment, were in debt, or were at risk of disconnection.
Despite these challenges, fewer customers were disconnected for non-payment.
Essential Services Commission Chairperson Gerard Brody said although it was pleasing to see fewer disconnections, other data highlighted in the report is concerning, particularly for customers experiencing payment difficulty.
“The data highlights there are many customers in arrears that are not receiving payment assistance. We expect retailers to be proactively identifying and offering support to customers experiencing payment difficultly.
“This includes assisting customers to apply for concessions and Utility Relief Grants and providing suitable payment plans that help customers pay down their debts before things spiral out of control.
“Additionally, while more people are receiving assistance, growing proportions of customers are unable to afford ongoing use and almost half exit payment plans due to non-compliance – this data raises questions about the suitability and effectiveness of those payment plans offered by retailers.”
There are strict rules in place to protect energy customers in Victoria. Among other protections, energy retailers must offer assistance to any customer who misses paying a bill and cannot disconnect a customer who is receiving assistance.
Commissioner Brody also highlighted the increase in disconnection warning notices outlined in the report.
“Energy retailers must provide assistance to residential customers to help them avoid getting into arrears and assist those who are in arrears. It is important that retailers communicate effectively with customers experiencing difficulty paying their energy bills rather than placing too much reliance on disconnection warning notices,” Commissioner Brody said.
The report also shows an increase in the number of Utility Relief Grant payments applied for and granted by the Department of Families, Fairness and Housing.
Payment difficulty and making sure customers experiencing financial hardship receive adequate support remain key compliance and enforcement priorities for the commission, with several investigations into compliance breaches currently underway.
