Thousands already in energy debt face further hardship as electricity bills surge across Australia

Sky News AU

08-07-2025

Australians are attempting to adapt to a fresh financial blow following electricity price hikes which officially kicked in on July 1, affecting millions of households nationwide.
The increases announced by the country's largest electricity providers - AGL, Origin, and EnergyAustralia - are already being felt across New South Wales, Queensland, South Australia, Victoria, and the ACT, with average bills rising between $110 and $300 per year depending on the provider and state.
According to the Australian Energy Regulator (AER), the cost increases follow updated default market offers and reflect higher wholesale energy prices, increased network charges, and customer service costs.
With these rising prices, the AER's latest quarterly data revealed that more than 215,000 Australians are currently in energy debt - a number that rose by 7 per cent from the previous quarter, while Canstar Blue data insights director Sally Tindall said more than four million households will see their electricity prices rise.
The average household energy debt now sits at $1,415, up $309 year-on-year.
Shadow energy and emissions reduction minister Dan Tehan slammed the Albanese government for breaking its promise regarding rising energy bills, with the Liberal MP demanding an apology to the Australian people.
'Labor's promise that electricity prices would be $275 cheaper this year was a lie and Climate Change and Energy Minister Chris Bowen should apologise,' Mr Tehan told SkyNews.com.au.
'Instead, since Labor was elected, electricity prices across the National Energy Market increased by up to $1,058 in New South Wales, $684 in Queensland and $747 in South Australia. Prices are up to $1,300 more than what Labor promised they would be."
Mr Tehan criticised the Energy Minister Mr Bowen stating that his only approach was disrupting the energy system and leading to higher electricity prices for Australian families.
'There is no transparency about the true costs to consumers of Labor's renewables only approach and underwriting renewable energy projects using taxpayer money,' he said.
Alongside this financial increases, Anglicare Australia's 2025 Cost of Living Index paints another bleak picture for low-income earners, stating that a full-time worker on the minimum wage has just $33 left each week after rent, food, and transport.
For a single parent, that number drops to just $1, even with government support.
'After paying the basics, minimum wage, workers are left with almost nothing. In many cases, there's no money left for energy bills at all,' Anglicare executive director Kasy Chambers said.
'We're seeing more people trapped in energy debt. They are skipping meals, going without heating, and falling behind on bills they'll never be able to repay.'
Chambers also revealed that more than 330,000 customers collectively owe $300 million to energy retailers, with debts over $3,000 rising sharply.
To address rising hardship, new regulations by the Australian Energy Market Commission will limit retailers to one price increase per year, ban most late-payment penalties, and compel companies to move vulnerable customers to their best available plans.
Speaking to ABC News Radio on June 26, Australian Melissa Fisher revealed the tough choices she already has to make everyday due to the mounting pressure of her energy bill.
'If an emergency happens and I miss one payment, they can now cut me off, so that has to come before anything else. I've had to sell some stuff and not eat properly. The first thing we had to cut back on was groceries and medication,' she said.
AGL customers in New South Wales are facing the steepest increases, with prices up by 13.5 per cent, adding around $267 annually for average usage. For high-use customers, the figure could climb to $300.
In South Australia, bills are rising by 7.8 per cent, or $200 annually, while Queensland households will see a 7.5 per cent increase, amounting to an additional $155 per year.
'AGL is committed to supporting customers experiencing cost-of-living pressures with $85m of the $90m FY24 and FY25 Customer Support Package delivered to date, and we will continue to deliver programs to support our customers over the next 12 months,' the company said in a statement last June.
Origin Energy, the country's largest retailer, is increasing market plan prices by 9.1 per cent in NSW ($216 more annually), 5.5 per cent in South Australia ($122), and 3.1 per cent in southeast Queensland ($72). Victorians will see the same increase from August 1, while gas prices in the state are already set to rise by $85 per year.
EnergyAustralia customers are also facing steep rises. NSW households will be hit with an 8.7 per cent increase ($215), ACT customers face a 11.6 per cent hike ($231), Victorians will see 2.3 per cent ($47), and Queensland and South Australia will follow with increases of $53 and $73, respectively, from September 1.
The average household on a default plan in NSW, southeast Queensland, and South Australia will pay up to $228 more per year as a result of the AER's revised default market offer.
While the federal government has extended its $75-a-quarter energy bill relief until the end of the year, many argue that the assistance won't be enough to cushion the full impact of these hikes.