Energy Hardship is Growing in the ACT: Urgent Action Needed
3 January 2025
The number of ACT residents struggling to pay their energy bills has increased by 78% since 2021, highlighting an urgent need for comprehensive and immediate intervention. Priority groups, including low-income households and renters, are disproportionately affected by rising energy costs and inadequate housing conditions, leaving many unable to heat or cool their homes safely and affordably.
Today, ACTCOSS launched an analysis of energy hardship which demonstrates the significant human toll.
“High energy prices, combined with inefficient housing, low incomes, and outdated or inefficient appliances, have left many households trapped in a cycle of financial stress. This is exacerbated by lack of access to consumer energy resources and the burden of market complexity,” said Dr Devin Bowles, CEO of ACT Council of Social Service (ACTCOSS).
“Renters face unique challenges as past poor building standards and split incentives prevent critical upgrades to energy efficiency in rental properties,” said Dr Bowles.
“The ACT Government should be praised for its leadership in the transition to a clean energy future. While the ACT leads Australia in clean energy policies, the benefits of this transition are not reaching everyone equally,” said Dr Bowles.
“Energy is essential for a healthy and dignified life,” said Dr Bowles. “When families are forced to choose between heating or cooling their homes and buying food, we are failing as a community. This is a wake-up call for immediate, targeted action.”
Who is Most Affected?
The report underscores the devastating impacts of energy hardship:
- Low-income households: Spending up to five times more of their income on energy than high-income earners, these families are trapped in a cycle of unaffordability.
- Renters: More than 76% of renters have reported cutting back on heating or cooling to manage costs, putting their health at risk.
- Priority populations: Older adults, people with disabilities, and those with chronic illnesses are disproportionately affected, often requiring higher energy usage for medical needs.
The Human Toll
Energy hardship has far-reaching consequences, including:
- Poor mental and physical health due to inadequate living conditions, sometimes leading to premature death.
- Increased risk of homelessness driven by mounting energy debts.
- Social isolation as families withdraw from community activities to save costs.
- Long-term financial insecurity, especially among older residents depleting retirement savings to cover energy bills.
Recommendations for Change
The report outlines a roadmap to address energy hardship effectively, calling for:
- Minimum energy efficiency standards and incentives: Establish further standards to define baseline energy efficiency requirements for rental properties and incentivise landlords to improve the energy efficiency of rental homes.
- Reform of retailer hardship obligations: Ensure the focus is preventing and alleviating hardship as opposed to the current focus of debt management and compliance.
- Accelerated energy efficiency upgrades: Fund moderate home energy efficiency measures and access to renewable energy resources for households with lower incomes.
- Measures to end long-term energy hardship: Set targets to end chronic energy hardship, review functioning of utilities concessions and energy support voucher scheme and improve cross portfolio cooperation.
- Enhanced consumer support: Establishing a one-stop shop with case management services to help priority households navigate upgrades and financial assistance, while increasing funding for ancillary supports such as financial counselling services.
- Amplified advocacy: Provide sustainable funding for consumer advocates to ensure vulnerable groups have a voice in the energy transition process.
A Call to Action
As the ACT continues its clean energy transition, equity must remain at the forefront of decision-making. “We need bold and immediate action to protect our most vulnerable residents,” Dr Bowles emphasized. “Policymakers must prioritize ending energy hardship as a critical goal, setting clear targets and allocating the resources necessary to achieve them.”
The time for incremental change is over. We must act decisively to ensure every household in the ACT can afford safe and reliable energy. Without swift intervention, the human and economic costs of this crisis will continue to mount.
ACTCOSS advocates for social justice in the ACT and represents not-for-profit
community organisations. Follow us @ACTCOSS on Twitter, Facebook and Instagram.
For more information or comment, please contact
Dr Devin Bowles, CEO, ACTCOSS, on 0413 435 080.
Authorised by Dr Devin Bowles on behalf of the
ACT Council of Social Service Inc (ACTCOSS)