New Data Highlights Power Pain of Vulnerable South Australians
More must be to done to help South Australians on low incomes so they can afford the energy they need, according to the South Australian Council of Social Service.
New Australian Energy Regulator data shows South Australians continue to pay the highest power prices in the nation. These power prices lead to South Australia having the most unaffordable electricity of any mainland jurisdiction, even while having the lowest average usage.
The AER’s Annual Retail Markets Report 2023-24 also reveals that:
- For the third financial year in a row, South Australia has the highest average energy debt in National Energy Market jurisdictions. In the last 12 months, the average energy debt of residential customers not in hardship programs increased by more than 21% (from $1,256 in 2022-23 to $1,522 in 2023-24).
- The number of customers entering hardship arrangements increased by more than 23%, from 16,066 in 2022-23 to 19,849 in 2023-24.
- Median market offers in SA increased by 16% in 2023-24, the biggest increase in the nation.
- Electricity was more affordable in SA for low-income consumers in 2023-24, with them spending 4.4% of their disposable income on electricity compared to 5.4% last year (largely due to federal and state government subsidies)
Quotes attributable to Ross Womersley, SACOSS CEO
South Australians on low incomes continue to bear the brunt of a complex and unfair energy market. We need to keep asking why we pay the highest prices in the nation.
South Australia’s high penetration of solar means that, according to the AER, average usage is low – but not all South Australians can afford to install rooftop panels on their residence, or they may live in rentals where they may not have a choice. This means that those who are least able to afford energy are paying the most for it. We know that the median usage of a hardship customer in this State is 66% higher than the average, and this means bigger bill impacts for those households.
More must be done to help all South Australians on low incomes to afford the energy they need. Currently, many are forced to waste energy – and pay for it – to keep their homes liveable because they are so inefficient. State and federal government subsidies provided short-term relief, but do very little to reduce demand in the longer term and are currently masking peoples’ power pain.
There is an urgent need to address this through measures that would increase energy efficiency in existing homes: improving insulation and draught sealing, and ensuring more equitable access to better appliances and renewable energy.
Hardship numbers continue to rise but in one sense we perceive this to be a good sign: that more customers are acknowledging they are struggling to cope with their energy payments and are seeking help from their retailers, which the retailers are obligated to supply.
I encourage anyone experiencing bill stress in the first instance to contact their retailer – by law they must help you.