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SACOSS opposes mandated prepayment for energy bills

MEDIA RELEASE: Australian Energy Regulator’s (AER’s) work on Better Bills for customers is likely to be helpful, but the real focus should be on its draft Consumer Vulnerability Strategy – which has real merits but probably still won’t help protect remote SA communities from being forced onto prepayment requirements. 

SACOSS welcomes today’s release of the Australian Energy Regulator’s Draft Consumer Vulnerability Strategy for consultation. 

“We wholeheartedly support the AER’s vision to improve energy affordability and to ensure consumers in vulnerable circumstances are supported by their retailer to stay connected to an energy supply that is essential to life,” said SACOSS CEO Ross Womersley.

“This is particularly important in South Australia, because we continue to experience the highest price per unit for electricity, and are amongst the least affordable jurisdictions for electricity in the National Electricity Market. The importance of ensuring these customers are able to access assistance early in the debt cycle so they avoid unmanageable long term debts is essential.

“Retailers have an obligation to support all customers to stay connected, and disconnection should only take place as a last resort after all supports have been offered and concessions applied. 

“Our own State Government could learn some lessons from the national regulator in supporting our most vulnerable to maintain an electricity supply. The State Government has recently made regulations requiring all residents in remote Aboriginal communities to prepay for electricity when user pays is introduced in July next year. 

“Prepayment customers however do not receive payment plans or hardship supports and the first outcome of payment difficulty is disconnection. Studies in the NT have shown that prepayment customers suffer through an average of 52 disconnections per year and that over 90 per cent of public housing tenants experienced a disconnection due to lack of credit. 

The impacts of prepayment for energy were brought into focus in the last few weeks when residents required to quarantine in remote communities in the NT ran out of electricity in extreme heat. 

“SACOSS is disappointed in the State Government’s move to mandate prepayment, and will be liaising with relevant stakeholders to try and minimise the potentially life threatening impacts of these changes,” Mr Womersley stated.

What SACOSS is calling for, in relation to general energy bill woes

  • SACOSS is urging all customers who are having trouble paying their bills to contact their retailer straight away, and reach out to Concessions SA to see if they are eligible for financial support to help pay bills.
  • SACOSS is also calling on retailers to do better: in 2020/21 fewer customers in SA were receiving hardship supports or were on payment plans than pre-pandemic, despite burgeoning debt levels. And of the 3878 customers disconnected in SA during 2020/21, less than a third had been on a payment plan in the previous 12 months.
  • SACOSS is calling for a universal system of mandatory household visits before any disconnection.
  • SACOSS wants to ensure remote customers are offered post payment options, proper protections from being disconnected, and to ensure any life support customers are excluded from mandatory pre-payment arrangements.

Quick facts about low-income energy customers

  • In SA, low-income customers pay (on average) 4.9% of their income on electricity, compared with between 2.5% and 3% in Victoria. 
  • SA hardship customers have the highest average debt in the nation of $2,438 ($714 above the national average).
  • Only 40% of hardship customers in SA are receiving concessions (compared with 70% in Tasmania).
  • Energy debt is increasing in SA: in 2020/21 the average electricity debt of customers not on a hardship program was $1,277 – a 13% increase in 12 months and nearly $300 higher than the national average.

Helpful Reference

Longden, T., Quilty, S., Riley, B. et al. Energy insecurity during temperature extremes in remote Australia. Nat Energy (2021). https://doi.org/10.1038/s41560-021-00942-2

FOR INTERVIEW:

SACOSS CEO, Ross Womersley –  advocacy@sacoss.org.au 

SACOSS logo

08 8305 4222

sacoss@sacoss.org.au

Marjorie Black House
47 King William Road Unley SA 5061

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MICHELE WACHLA

Michele is an accomplished social services professional with a dual background in Social Work and Business, bringing over 18 years of experience to her work. She has developed a deep understanding of the unique challenges and opportunities within Regional, Rural, and Remote (RRR) environments, particularly in South Australia. Michele is a recognised leader, known for her expertise in designing and implementing place-based initiatives that address the complexities of RRR communities. Her work is underpinned by strategic planning, effective resourcing, and a strong focus on policy review and advocacy to ensure that services remain relevant, equitable, and sustainable. Michele’s commitment to community-centred approaches drives meaningful outcomes, nurturing resilience, and growth across regional South Australia.

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DAVE ADAMSON

Dave moved to Australia following a 30-year academic career in the UK. He has since worked in the Community Housing sector and authored the 2016 Towards a National Housing Strategy, and helped to establish the Everybody’s Home campaign. He also researches the interface between poverty and climate change and actively supports the United Nations Sustainable Development Goals. He has worked with government at all levels and has experience of policy development and evaluation. He is co-author of Sustainable Places: Addressing Social Inequality and Environmental Crisis (2022, Routledge). In his spare time he plays and builds guitars.

ROHAN FEEGRADE

Rohan is an experienced and forward-thinking CEO, senior executive and board director with demonstrated expertise across the not-for-profit, private and government sectors. Currently CEO of Lutheran Care, he has proven record for creating substantial organisational, stakeholder and client value, and has extensive experience in strategically positioning organisations for transformational change and growth within the health, disability, education and community service sectors. Rohan is a socially responsible professional, genuinely passionate about creating opportunities for people who live with disadvantage and disability, always acting ethically to serve those he works with and for.

JANE MUSSARED

Jane has worked in for purpose and government health and human service settings throughout her career. In June 2024 she returned to SA and joined the Maggie Beer Foundation as CEO following 20 months based in Canberra as an Advisor to the Federal Minister for Health and Aged Care. Previously she was Chief Executive of COTA SA and before that an executive of ACH Group. Jane served on a range of boards and committees prior to moving to Canberra, including the SACOSS Policy Council until 2022, as chair of the South Australian Circus Centre and as a non-Executive Director with the Maggie Beer Foundation.

NANCY PENNA

Nancy has than 30 years of experience in South Australian community services, and a a unique understanding of the political and social landscape and the issues and opportunities facing South Australia. Currently responsible for the strategic and operational oversight of AnglicareSA’s community services portfolio, she has previously held executive roles in government within child protection and disability, with her executive experience underpinned by her earlier career as a social worker in child protection and youth justice. She is also Chair of the Child and Family Focus South Australia (CAFFSA) Board and most recently on the Housing Security for Older Women Taskforce.

NICOLE CHAPLIN

Nicole is a dedicated and experienced youth support professional, specialising in solutions for disadvantaged young people in South Australia. As CEO of St John’s Youth Services, she oversees innovative programs like youth110 and Foyer Port Adelaide. With over thirty years in the community sector, Nicole has built extensive networks and her expertise spans governance, service delivery, policy development, and partnerships. Recognised with the 2018 AHI Inspirational Leader Award, Nicole is an active participant in housing and homelessness networks. She holds leadership roles in various organisations, including Anglicare Australia’s National Reconciliation Network.

EMMA CROSBY

Emma is a chartered Accountant with more than 15 years experience as a board member, finance and business professional, strategic advisor and company secretary. She has strong values and a passion for enabling and leading organisations to meet its operational and strategic direction through long-term financial sustainability, operational efficiency, innovation, leadership, transformation and partnerships. As Treasurer and Board member at SACOSS, she is committed to successfully leading and making a purposeful impact to the organisation and its stakeholders.

David PANTER

David has worked in health and social care for almost 45 years, over half of which has been as a Chief Executive. In the UK he initially worked in the NHS and more latterly in local government, where he was Chief Executive of Brighton & Hove City Council. In 2004 David was recruited to the South Australian public health system for over 10 years leading reforms including the development of the new Royal Adelaide Hospital. From 2015-2022 David was the Chief Executive of not-for-profit aged care provider ECH. At the end of January 2022 David became the Chief Executive at Minda, SA’s largest provider of services to people living with an intellectual disability.