Thousands disconnected

Record numbers in hardship owe $62.2m on power, gas

ELECTRICITY and gas retailers have been disconnecting almost 1000 Victorian households a week over unpaid bills.

And a record number of customers in hardship programs owe a staggering $62.2 million as they struggle with escalating energy costs.

A new report reveals 26,004 residential customers were cut off because of unpaid accounts from July to December last year — at a rate of 989 a week.

Hardship program customers ballooned to 36,239 by the end of last year.

The shocking state of energy stress comes as retailers face new rules designed to give better and faster help.

Essential Services Commission chair Ron Ben-David said hardship participants had almost doubled in three years.

“While there was a recent fall in total disconnections since October, the rate remains high, and disconnections are only one part of the story,” Dr Ben-David said.

“High participation in hardship programs and the level of debt for those entering these programs underlies why we all need to work together to prevent customers falling into large debt.”

News Corp analysis of figures reported to the regulator show gas disconnections hit 11,720 for the six months to December — up 50 per cent on the same period a year earlier.

Companies cut off 14,284 electricity customers, up 19 per cent on the same time the previous year. However, total disconnections eased in the final few months of last year.

Retailers must follow strict procedures, such as adequate warnings, before disconnection. Hardship program customers can’t be cut off.

From July 1, the minimum debt before companies can pull the plug increases from $132 to $300.

By January 1 next year, they must also comply with revamped rules including flexible payment options.