Australians struggling with energy bills are facing inconsistent responses from power retailers, with many missing out on support they’re legally entitled to, a new survey has found.
Despite mandatory hardship policies, a nationwide survey of 400 financial counsellors revealed wide disparities in how energy companies assist vulnerable customers.
Major issues included:
- A lack of proactive help
- Rigid repayment plans
- Complex application processes
- Misuse of disconnection practices
“This should be a wake-up call for regulators, industry, and governments to consider how energy costs and hardship responses are affecting consumers,” said Zyl Hovenga-Wauchope, CEO of Financial Counselling Victoria, which led the research.
“Unless you’re with one of the few top-performing retailers, your chances of getting effective help are slim.”
Best and Worst Energy Retailers Revealed
The report, which drew on insights from financial counselling bodies across Australia, ranked energy providers on their handling of customer hardship.
WA’s Synergy earned the top spot, while ENGIE, a French-owned company, was ranked the worst.
“ENGIE stood out for all the wrong reasons — poor communication, poor understanding of hardship, and unrealistic support options,” Hovenga-Wauchope said.
Retailers were rated on a 10-point scale. The final scores were calculated by subtracting the percentage of negative reviews from positive ones.
Retailers were scored poorly for:
- Denying hardship assistance
- Being inflexible with payments
- Making access to support unnecessarily difficult
Sarah Duane, a financial counsellor from Melbourne’s western suburbs, shared a case where a small energy company repeatedly contacted a customer in distress — even after she had lost her home and was living in her car. The company refused to deal with the counsellor, and the issue was only resolved after escalation to Victoria’s Energy and Water Ombudsman.
On the other hand, she praised some providers for showing compassion in cases involving family violence, offering reasonable plans and, at times, debt waivers without excessive proof of hardship.
High ratings from counsellors were linked to empathy, flexibility, and positive collaboration with hardship teams.
Widespread Bill Stress, Limited Hardship Support
According to Energy Consumers Australia, around 40% of Australians are struggling to pay their energy bills. However, only 1–1.5% are enrolled in formal hardship programs, according to Louisa Kinnear, CEO of the Australian Energy Council.
“That number hasn’t significantly changed, but it’s something we’re monitoring closely — especially as government energy relief comes to an end,” Kinnear said.
Recent regulator decisions mean electricity prices could rise by up to 9.7%, depending on location. While federal subsidies continue until the end of the year, concerns remain about the affordability gap that will follow.
Energy Sector Lags Behind Banking and Water
The energy industry fared poorly compared to other sectors when it comes to hardship support:
- Only 12% of financial counsellors rated energy companies as “excellent”
- Banks scored 31%, and water providers 36%
“Banks have worked closely with regulators to set minimum hardship standards. Energy needs to follow that lead,” Hovenga-Wauchope said.
Kinnear agreed the energy sector could learn from banking and water. Consumers unhappy with retailer responses can escalate issues to their state or territory energy ombudsman.
Calls for National Hardship Standards
Consumer advocates are urging reforms to ensure consistent hardship support nationwide, regardless of location.
“Varying state requirements complicate things for both customers and retailers,” Hovenga-Wauchope explained.
“We need uniform national standards, so no matter where a customer lives, they can expect fair and accessible support.”
Kinnear added that state-specific language rules for retailer communication can actually confuse customers.
“The scripted language some states require is too complex for many experiencing hardship. We’re working with regulators to improve this.”
Key Recommendations for Retailers
The report urges energy companies to:
- Use available data to identify at-risk customers
- Train staff in trauma-informed and culturally sensitive practices
- Offer flexible repayment options
- Automatically apply eligible concessions and grants
- Provide personalised energy efficiency advice
Disconnections, it stressed, must remain a last resort.
Kinnear supported this, noting that most retailers only disconnect when there’s no customer engagement.
“Still, we can do better to ensure disconnections are approached with consistency and care,” she said.
