AER Releases Annual Retail Markets Report 2023–24

The Australian Energy Regulator (AER) has published its Retail Markets Report 2023–24, providing key insights into energy affordability, customer service, and the support systems for vulnerable consumers.

The report highlights a slight improvement in energy affordability for low-income households, thanks to federal and state energy rebates. However, challenges persist, with 2.9% of residential customers holding energy debts exceeding 90 days, and many requiring entry into hardship programs.

While the proportion of electricity customers in hardship programs rose from 1.4% to 1.9%, average debt levels on entry increased significantly—up 23.7% for electricity and 33.5% for gas. AER Board member Jarrod Ball emphasized the need for more effective support systems and earlier intervention for struggling customers.

Median Market Offers: Residential electricity prices increased during 2023–24 but saw a drop of up to 4% in July 2024 in most jurisdictions.

Market Competition: Smaller retailers are gaining traction, introducing innovative offers such as bundled battery or EV components.

Customer Switching: Switching rates varied across regions, with up to 7% in Victoria and around 3% in the ACT changing providers.

Billing issues drove an increase in calls and complaints to retailers and ombudsman schemes. Additionally, one-third of customers with long-term energy debt are not on payment plans or in hardship programs, potentially missing critical assistance.

The AER is advocating for reforms to tackle energy debt and ensure more seamless access to concessions and debt relief. Proposed measures include:

Automatically placing eligible customers in hardship programs.

Offering tailored payment solutions.

Enhancing access to financial counseling services.

These reforms aim to break the cycle of energy debt and support struggling consumers proactively.

The AER’s Towards Energy Equity strategy continues its focus on improving affordability and support mechanisms. The regulator will review payment difficulty protections to better assist consumers in need.

EServices4u: Explore affordable and sustainable energy solutions tailored to your needs at www.eservices4u.com.au