This support was intended to ease cost-of-living pressures but larger debts carried by fewer households are pushing the national average higher.
Rising household expenses have left more Australians unable to cover energy bills. According to the Australian Energy Regulator's latest market report, as of June 2023, the average energy debt overdue by more than 90 days reached $1367, up from $1148 the year before. These figures follow the introduction of energy rebates in mid-2023, aimed at curbing inflation which had risen close to 8%.
The proportion of residential customers in debt increased to 3.1%, up from 2.9%. A similar rise was seen in small business customers, now at 3.5%. Although rebates cleared smaller debts and helped reduce the number of households in hardship programs, which fell from 1.7% to 1.5%, fewer customers continue to hold larger debts, driving the overall debt average upward. The relief program, which was extended in March at a cost of $6.8 billion, is struggling to address deeper affordability challenges.
The issue is more severe in colder or lower-income areas. Tasmania reported the highest proportion of energy debt at 5.6%, affected by high heating requirements, poor insulation and lower incomes. South Australia followed at 3.5%, then the ACT and New South Wales at 3.2%. Queensland had the lowest share at 2.4%. Data for Victoria, Western Australia and the Northern Territory was excluded due to different regulatory systems.
Looking ahead, community organisations warn that growing energy debt could push families into difficult financial choices during the high-cost Christmas and back-to-school periods. Some economists are recommending the government scale back energy relief, arguing it might worsen inflation. The federal government has not confirmed whether rebates will continue, with a decision expected shortly.
