The Australian Energy Regulator (AER) has released its Annual retail markets report 2024-25 analysing key consumer outcome metrics and data from energy retailers in the financial year to 30 June 2025.
AER Board Member Jarrod Ball said the report found that while government rebates boosted affordability for many customers, more customers ended the year with energy debt.
“Metrics related to energy debt, payment plans and hardship trended back to pre-rebate levels towards the end of the 2024-25 financial year,” said Mr Ball.
At the end of June 2025, 3.1% of residential and 3.5% of small business customers had energy debt, compared to 2.9% and 3.4% respectively at the same time in 2024.
“Rebates from federal, state and territory governments improved affordability for many customers, initially reducing debt and the number of customers on payment plans and in hardship programs,” said Mr Ball.
The overall proportion of residential electricity customers on a payment plan decreased from 1.8% to 1.5%, while the proportion on hardship programs also decreased from 1.7% to 1.5%.
“However, as smaller debts were cleared, larger debts across a smaller number of customers led to an increase of the overall average energy debt,” said Mr Ball.
At the end of June 2025 average energy debt was $1,367 compared to $1,148 at the same time in 2024.
“While two-thirds of customers in energy debt were receiving support from their retailer through a payment plan or hardship program this year, one-third were not.
“It’s critical that retailers support residential customers who are struggling with energy bill payments and explore all forms of assistance to help customers lower their costs.
“I strongly encourage customers struggling with payments to contact their energy retailer as soon as possible to receive the assistance they’re entitled to under national energy laws.
"New rules to take effect in July 2026 will also require retailers to provide more information about concessions and rebates more regularly, prompting customers to consider if they're eligible for that support.
"From December 2026, retailers must ensure that hardship customers pay no more than their deemed better offer, if available, preventing these customers from incurring more debt or expenses than necessary,” said Mr Ball.
These rule changes originated from recommendations in the AER’s Game changer report, a package of solutions designed to break the cycle of energy debt and ensure consumers experiencing vulnerability are identified early and get the support they need.
In a sign that consumers are engaging in the market, the majority of residential electricity customers continue to be on a market contract – which is typically cheaper than a standing offer contract.
“Although the gap between the lowest and highest offers in the market was smaller than last year in some regions, there are savings available for customers who shop around for a better deal.
“Visit Energy Made Easy or Victorian Energy Compare to compare your current plan against others. If you can find a better plan for your individual circumstances, consider switching. You can also ask your retailer to be put on their best available plan,” said Mr Ball.
Notes to editors
About the Annual retail markets report
The Annual retail markets report 2024-25 covers the financial year of 2024-25 and provides comprehensive and in-depth analysis of the performance of the retail energy markets and energy retailers, as well as an assessment of the outcomes for consumers and issues they experience in the retail energy markets. The insights presented provide an understanding of areas for policy and regulatory reform and compliance and enforcement priorities.
The report covers jurisdictions that have adopted the National Energy Customer Framework (NECF) and are covered by the National Energy Retail Law and the National Energy Retail Rules – NSW, Queensland, South Australia, Tasmania, and the ACT. Although not part of the NECF, Victoria is also included in some sections of the report.
From 1 July 2025, energy retailers were required to report a broader range of data that will enable the AER to monitor the retail market and consumer outcomes. We will publish quarterly reports throughout the year, drawing on updated metrics.