The Australian Energy Regulator (AER) has today published its quarterly retail performance update for the January–March 2026 period.
Retail performance indicators show that energy affordability pressures remain high.
Compared to last quarter and the same quarter last year, more residential energy customers are carrying debt, entering hardship programs and using payment plans, while disconnections and credit collection activity have also increased.
While the average debt of customers with debt more than 90 days overdue decreased, the increase in the number of customers with debt indicates that payment difficulty is becoming more widespread.
Similarly, the increase in customers accessing payment plans may reflect earlier engagement with retailers but also points to broader affordability issues in the context of rising energy debt and hardship.
For many customers, shopping around and switching to a better offer can help save on energy bills. Residential electricity customers that are on the median market offer are able to save up to 23% by switching to the most competitive offer in the market.
Following the release of the Default Market Offer 2026–27 customers on both flat and time-of-use tariffs may see further savings from 1 July 2026.
In this environment, the AER continues to advocate for improved protections for customers experiencing payment difficulty, submitting 5 rule change requests to the Australian Energy Market Commission (AEMC) to improve protections for customers experiencing payment difficulty.
The AEMC decided to fast track 4 of these 5 rule change requests on the basis they were developed through extensive consultation by the AER.
On 18 June 2026, the AEMC made a draft rule covering these 4 rule change requests intended to enhance requirements on energy retailers so customers experiencing payment difficulty are engaged early and given clearer, more tailored support.
Stakeholders are invited to provide written submissions on the draft determination by 30 July 2026 via the AEMC website.
Background
Retailers are required to regularly report a series of metrics to us related to their performance, including customer numbers, contract types, complaints, energy debt, payment plans, hardship programs, disconnections and reconnections.
We publish this data on a quarterly and annual basis and provide commentary and analysis that contributes to understanding and decision-making in the retail markets.
Our flagship Annual retail markets report provides analysis and commentary on market share, energy affordability, and difficulties consumers face in paying their energy bills. Our report helps guide us on issues that matter most to consumers.