When a Victorian man contacted his energy provider over an outstanding utility bill of $750, he expected to discuss payment plans or hardship assistance with an operator – options that have become increasingly common as the cost-of-living crisis continues to bite.
asserted
crisis → contact → living
Instead, the man’s energy provider disconnected his service and told him that the entire outstanding amount would have to be paid in full before it could be switched back on.
uncertain
it → disconnect → him
It was only after he contacted the state’s energy and water watchdog that his power was reconnected.
asserted
power → contact → watchdog
That same day, not only was his service returned, but he was offered a cheaper plan and given up to two years to pay off his outstanding debt.
asserted
he → return → debt
His case comes as new figures from the state’s Energy and Water Ombudsman reveal complaints from Victorians facing gas or electricity disconnections have doubled between April and June, compared with the same quarter last year, prompting consumer advocates to warn that cutting off struggling households must be a “last resort” or outlawed.
asserted
cutting → come → households
The latest data also shows complaints involving debt collection have jumped 58 per cent in 12 months, while cases involving customers struggling to pay their utility bills had also increased by 28 per cent compared with the same quarter last year.
asserted
cases → show → quarter
Consumer Action Law Centre assistant director, Eleanor Doran, said she was “deeply concerned” about the increase in complaints about disconnections and warned that retailers had an obligation to help customers struggling to pay.
“We say disconnecting people from energy in a cost-of-living crisis is not fair, and must be an absolute last resort for retailers,” she told The Age.
asserted
she → say → Age
“Retailers have obligations to work with customers if they are experiencing energy debt.”
asserted
they → have → debt
Victorian Council of Social Service (VCOSS) said it wanted gas and electricity retailers barred from cutting off customers altogether, bringing them into line with longstanding protections against households.
asserted
retailers → say → households
“Disconnections do nothing to help people pay off their debt,” VCOSS chief executive Juanita Pope said.
asserted
Pope → do → debt
“Research shows that disconnection – or even the threat of it – can harm people’s health.
asserted
disconnection → show → health
It causes distress, anxiety, isolation and shame.
asserted
It → cause → distress
It can also push people into harmful behaviour such as rationing energy or other essentials like food.
asserted
It → push → food
“Victorian households can’t be disconnected from water if they can’t pay – with good reason because water is essential.
asserted
water → disconnect → reason
And like water, access to energy is something that everyone needs to live healthy and dignified lives.”
asserted
everyone → need → lives
The most recent data from the Essential Services Commission shows electricity disconnections for unpaid bills jumped 37 per cent in a single year, with 13,776 residential customers cut off in the 12 months to March, up from 10,055.
Household gas disconnections rose even more sharply, surging 64 per cent, from 3682 residential customers to 6050 in the 12 months to March.
In July, the Commission issued a warning to Victorians that energy retailers cannot force customers to completely pay off debts before reconnecting essential energy services.
asserted
retailers → show → services
In total, EWOV recorded 23,957 complaints last financial year – up 23 per cent.
asserted
EWOV → record → complaints
The state watchdog also found repeat examples of energy companies demanding struggling customers pay large sums of money upfront before their power or gas was switched back on, which it said was creating “a significant barrier to restoring an essential service”.
asserted
it → find → service
Ombudsman Catherine Wolthuizen said some energy and water companies were required to provide assistance.
asserted
companies → say → assistance
“Customers experiencing payment difficulty should be met with practical support from providers, not unnecessary barriers,” she said.
asserted
she → experience → providers
“We ask providers to act fairly, give full consideration to a consumer’s circumstances and support them to access the right assistance.”
asserted
We → ask → assistance
The ombudsman also highlighted the financial impact of billing system failures, with the watchdog intervening in one case involving a small business owner who went almost two years without receiving an energy bill before being hit with a bill of more than $21,000.
asserted
who → highlight → 21,000
The business owner said a fault in his energy provider’s billing system meant he had been unable to monitor his usage during the 22-month period.
asserted
he → say → period
After the watchdog intervened, the provider backdated the bills at a cheaper rate, wiping about $900 from his bill and offering a further $5000 discount if he paid the remaining amount upfront.
asserted
he → intervene → amount
The surge in complaints about utility providers comes as households continue to grapple with cost-of-living pressures.
asserted
households → come → pressures
Prices rose 3.8 per cent in the year to June, with electricity remaining one of the biggest contributors to inflation, rising by more than 20 per cent in 12 months following the end of government subsidies.
asserted
electricity → rise → subsidies
Data from the National Debt Helpline, provided to The Age, shows demand for financial counselling has also jumped in the past year, with call and chat inquiries up 12 per cent in the 12 months to the end of August.
asserted
inquiries → provide → August
Working-age households accounted for the bulk of demand, with 70 per cent of callers aged between 25 and 54.
Financial counselling Victoria chief executive Zyl Hovenga-Wauchope said households often prioritised rent and mortgage repayments over bills.
asserted
households → work → bills
“Around one third of Australian households report difficulty paying home electricity or gas bills, showing that energy affordability and access to hardship support are systemic problems,” he said.
asserted
he → report → support
“Energy retailers must ensure they are offering genuine and realistic hardship provisions.”
asserted
they → ensure → provisions
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