We surveyed Australian households about how they pay their energy bills. Our survey focused on understanding how people manage their payments, particularly when experiencing financial stress.
Key findings
- Most Australian households are feeling the effects of the cost-of-living crisis, with 37% of energy customers surveyed experiencing financial stress and just 15% reporting feeling no increased pressure from the cost of living.
- Financially stressed energy customers are significantly more likely to have used a non-traditional lending product to pay energy and water bills in the last 6 months.
- More than a third of financially stressed customers were unable to pay an energy or water bill on time in the last 12 months.
- Among those who had been unable to pay their energy bills on time in the last 12 months, 45% cut essential spending, 40% cut optional spending and 32% contacted their energy retailer to ask for assistance.
- Almost 4 in 10 energy customers are currently or have previously been on a retailer instalment plan to smooth their energy bills.
- 44% of financially stressed energy customers are or have been on a debt repayment plan with their retailer. More than a third of these customers have never received any extra support through their energy retailer’s assistance program.
About the study
Conducted for the AER by Fonto, the research looks at:
- Which consumers are experiencing financial stress?
- How do consumers prioritise the payment of energy bills against other payments?
- Who is using non-traditional lending products?
- How extensive is the use of traditional and non-traditional lending products to pay energy bills? This includes credit cards, buy now pay later, wage advance loans, personal loans and payday loans
- How much do consumers know about how they could reduce their energy bills?
Methodology
The 15-minute digital survey was conducted from 25 October to 11 November 2024.
We surveyed 1,686 people aged 18+ who pay energy bills in New South Wales, Victoria, Queensland, South Australia, Tasmania and the Australian Capital Territory
We set quotas for a nationally representative distribution of electricity-only and electricity and gas households. The data is weighted on gender, age and state to 2021 Australian Bureau of Statistics Census data.
The financially stressed segment was determined using the Household, Income and Labour Dynamics in Australia (HILDA) survey question on ability to access $2,000 for an unexpected expense. A secondary segment for financial stress was determined using Fonto’s Financial Wellbeing Model that uses attitudinal statements to determine levels of financial stress.