The number of Australian families struggling to pay their power bills has skyrocketed, with new figures revealing a dramatic 50 per cent increase in households requiring hardship assistance.
Soaring Numbers in Energy Distress
When the Albanese government was elected in 2022, more than 137,000 families were on special arrangements with their energy retailers to manage bills and avoid disconnection. According to the latest data from the Australian Energy Regulator for the June 2025 quarter, that figure has now surged to 205,000 households.
These hardship assistance customers are residents experiencing significant financial difficulty, working with retailers on payment plans for essential electricity and gas services.
State-by-State Breakdown of the Crisis
The pain is not evenly spread across the nation. Victorians are bearing the brunt of the crisis, with a staggering 83,000 families seeking help. They are followed by 63,000 households in New South Wales, 30,000 in Queensland, 18,000 in South Australia, and 6,000 in Tasmania.
Political Storm Over Power Prices
The Coalition has seized on the alarming data to attack the government's energy policies. Shadow Energy Minister Dan Tehan argued the figures show policies are "really hurting Australians who are clearly struggling." He noted the increase occurred despite federal and state government energy rebates offered in recent years.
Opposition Leader Sussan Ley, campaigning on her energy plan in regional Victoria, called the figures "heartbreaking." She accused Prime Minister Anthony Albanese of delivering higher costs of living, power prices, and inflation instead of relief.
Energy Minister Chris Bowen, appearing on the ABC's 7:30 program, conceded that retail prices remain "much higher than I would like." However, he pointed to a substantial reduction—around one-third—in wholesale prices in the last quarter, expressing hope this would soon flow through to household bills.
Broken Promise on Power Bills
The surge in hardship comes as a key Labor election pledge expires. During the 2022 campaign, the party promised to cut power bills by $275 by the end of 2025. That deadline has now passed, and prices have risen significantly.
Australian Energy Regulator data shows the stark reality for households:
- NSW households paid $2,858 for power in 2025, far above Labor's forecast of $1,665.
- Queensland households paid $2,779, compared to a forecast of $1,536.
- Victorian residents paid $1,965, versus a forecast of $1,280.
The political fight over energy is set to intensify, with warnings from the Australian Energy Market Operator about potential east coast grid blackouts if coal-fired power stations are not extended past 2027. Whether retail prices fall before the 2028 election is poised to be a defining issue.
Treasurer Jim Chalmers has indicated the federal energy bill rebate scheme could be extended. Australians are due to receive a final $75 discount in the last quarter of 2025 before the current relief measure expires.
