As electricity companies impose double digit price rises from the weekend, a key government advisory group has called for more uniform assistance for those finding it difficult to pay their bills, which includes almost as many middle-income households as poorer ones.
The Australian Energy Markets Commission, which monitors activity in the country's electricity and gas markets and provides advice to the country's federal and state energy ministers, has warned that nearly one family in four finds it difficult to keep the lights and heaters on.
The most vulnerable households are likely to be among single mothers, renters, those not in full-time employment, recent grants, those living in rural areas, the Indigenous or those who have experienced major stress such as the arrival of a baby or a family death.
But it is those on middle incomes who, overwhelmed by financial and family commitments, may be under the most pressure, it said in a report released Thursday because, unlike poorer households who are familiar with support services available from their energy supplier or the government, those on middle incomes often don't.
In particular, middle-income households were likely to have a smaller buffer of savings to help tide them through any difficulties even though many were on annual incomes of up to $100,000. This group of "more 'hidden' vulnerable consumers require more targeted outreach", it said.
In particular, more flexible payment arrangements should be offered by electricity and gas companies as a matter of course, it said, while retailers which provide support and leniency with payments could engender "significant loyalty and even advocacy" from their customers.
The research found that 24 per cent of all households find it difficult to pay their gas and electricity bills, with half of these households being on low incomes, and the rest middle or higher income households.
In a recent report, Victoria's Essential Services Commission argued that the assistance framework has left many households deeper in debt to their gas and electricity provider, and had led to "inconsistent outcomes".
In Queensland, for example, anyone aged over 60 years receives a concession on their energy bills – even if they have solar panels so that they are actually receiving income from selling power into the grid. In South Australia, a flat-rate concession applies, although there is pressure to adjust any benefit to meet household needs.
The chairman of the commission, Mr John Pierce, said concession policies need to be overhauled to target those most in need, while regulations should be standardised between different states.
"Making it easier for customers to access the information and tools they need to find the best deal is particularly important for those most vulnerable to price increases, and as more technologies and services become available," Mr Pierce said.
The report found that fewer than one in five households changed their gas or electricity provider in the past.
