Power bill hike will hurt struggling Victorians

MEDIA RELEASE

The Essential Services Commission’s proposed 31% hike to Victorian power bills would drive tens of thousands of people further into poverty, Victoria’s peak social advocacy body has warned.

The independent energy regulator is planning to increase the Victorian Default Offer by 31%, pushing the average annual household bill from $1,403 to $1,829. That’s an increase of about $426.

“Make no mistake, this price hike will drive tens of thousands of people further into poverty,” VCOSS CEO Emma King said.

VCOSS will make strong representations to the Essential Services Commission detailing the damaging impact such an increase would have on struggling Victorians, and the need for any increase to be minimal and fully justified. The ESC will make its final determination in late May.

In the meantime, VCOSS is urging the Victorian Government to urgently strengthen protections for low-income households.

“If a power bill storm is about to crash on Victoria, then the government must raise the levee banks protecting our most vulnerable.”

Ms King said this urgent action must take the form of:

• Increased rebates for people with unavoidable high-use or medical conditions,
• Additional direct support for people simply unable to pay their bill,
• Greater funding for household energy saving programs, and
• More support for people to transition to solar power.

She said these measures must be done in concert with the Victorian Government’s existing, popular and highly effective Power Saving Bonus.

“Energy is a necessity.”

“Nobody should be skipping meals or medicine, shivering through winter, getting sick or plunging into debt to service their power bill.”

Ms King also put energy retailers on notice about any unjustified price-jacking or profiteering.

“People are struggling. This is not the time for power company CEOs to be making up excuses to inflate their profit margins.”

“My message to the retailers is simple: don’t price gouge. Keep your prices as low as possible,” Ms King said.

The Victorian Default Offer (VDO) is an essential safeguard. It is a standardised electricity offer open to all Victorian power customers. The VDO is used as a baseline for other power plans and priced deals.