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Affordability in retail energy markets (report) | 735.98 KB |
Affordability in retail energy markets (data) | 484.19 KB |
This report provides a high-level analysis of energy affordability in New South Wales, Queensland, South Australia, the Australian Capital Territory, Victoria and Tasmania with a focus on the affordability of energy for low income households. It also provides an early analysis of the effect of the Default Market Offer arrangements introduced by the Australian Government in July 2019. These regulations, which are administered by the AER, place a cap on what retailers can charge customers on electricity standing offers in New South Wales, South East Queensland and South Australia.
In a departure from our usual practice of presenting this data as part of our Annual report on compliance and performance of the retail energy market, this year we have presented this data in a standalone form. The data contained in the report indicates some modest improvements in energy affordability over the past year, although energy is still difficult to afford by historical standards.
We know that paying energy bills is a major concern for many Australian households, especially those on low incomes. Our report shows that low income households on a typical market offer spent 4.8 to 7.6 per cent of their disposable income on electricity and 2.6 to 5.5 per cent on gas.
For customers on standing offers the cost of their energy is typically even higher. For example, for a low income household in South Australia, the difference between annual electricity bills on the median market offer relative to the median standing offer is $532. This translates into a difference between spending 9.9 per cent or 7.6 per cent of their disposable income on electricity.
We encourage households, where possible, to seek out the best possible deal they can for their circumstances. EnergyMadeEasy – our independent and free of charge price comparison website – provides the information you need to compare the various offers in your area so you can see if you would be better off under a different deal. Choosing the right deal can make a big difference to your energy bills.
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