New analysis reveals more than 1.5 MILLION in energy debt as campaign calls for immediate relief.
New analysis of market data released by regulators shows that more than 1.6 million residential electricity and gas accounts were in arrears at the end of 2025. This is despite the fact that wholesale energy prices have actually reduced.
The analysis also showed that, at the end of 2025:
- In districts monitored by the AER (New South Wales, Queensland, South Australia, Tasmania and the Australian Capital Territory), 613,000 electricity and gas accounts were in arrears.
- In non-AER-regulated districts (Victoria, WA, Northern Territory), 618,000 accounts were in arrears.
- 394,000 customers nationally were on a hardship or tailored assistance plan, with an average debt of $1616.
- The number of customers on a hardship or tailored assistance plan had increased by 19.4% since the end of 2024
- In jurisdictions monitored by the AER, the number of accounts referred to debt collection agencies has increased by 53.4% – from 29,772 at the end of 2024 to 45,666
- The total owed by customers, on a hardship plan or with a debt of 90 days or more, exceeded $700 million in AER monitored regions.
The analysis, compiled by Stop The Bill Shock, an alliance of energy justice advocates, shows that Australia is now in the grip of an energy debt crisis, so large it is distorting the energy market and pushing up energy prices for all customers. That’s because the cost of administering and recovering debts is factored into energy bills by energy companies looking to protect their profits. It’s also a key component of the calculation for the Default Market Offer, which sets the maximum price customers of a default energy plan can pay.
Stop The Bill Shock is calling for urgent government intervention in the upcoming federal budget to cancel outstanding energy debt and relieve the burden on households already suffering under the weight of skyrocketing costs for fuel, groceries and housing.
Under Stop The Bill Shock’s proposal, the federal government would buy outstanding energy debt from retailers (currently valued at approximately $700 million) – at a fraction of its market value, just as a debt collection agency would – removing that debt from customers’ accounts and reducing the upward pressure on energy prices.
The Stop the Bill Shock campaign was started by a collective of climate and economic justice organisations working and campaigning to make sure energy bills are permanently lowered and that everyone benefits from and is included in the transition to renewables – not just those who can afford home upgrades.
Stop the Bill Shock is calling on state and federal governments to:
- Cancel existing energy debts now
- Bring energy bills down for everyone, forever – by making energy companies invest more in renewable energy and pass the savings onto customers’ bills
- End the cycle of debt – with better customer protections and stronger regulations to make the market fairer and stop the profiteering of energy companies
- Help households take back control – by expanding funding and support for home upgrades (solar, insulation, efficient heating & cooling) so more homes can cut bills for good.
Jay Coonan, Stop The Bill Shock campaign spokesperson and Antipoverty Centre co-coordinator, said:
“Energy companies have shown they are unwilling to put struggling customers before profits. They have reaped billions in profits and pushed energy prices higher while hundreds of thousands of people are stuck in debt, and have resisted our calls to do anything serious to help customers who are under enormous financial strain. It is time for the government to step in to end the debt trap and help to bring costs down – not just for households trapped in debt, but for all of us.
We have no choice but to ask the government to step in and act to wipe energy debt immediately to protect people from harm. But wiping debt isn’t the end of the story – we need real changes to keep energy companies in line, expand access to cheap renewable energy and end the debt traps that are ruining lives.”
Nic Seton, CEO for Parents for Climate, said:
“Rising energy debt is a flashing warning sign of market failure. Energy is an essential service, not a luxury, and when hundreds of thousands of households are falling behind, the answer cannot be to leave families stuck in a debt trap while costs rise through the whole system. Everyone loses. Cancelling energy debt is a cost-effective intervention that would reduce pressure on families, and help reset the market in a fairer direction.
Families should not be trapped in energy debt just to keep the lights on, the heater running, or food fresh in the fridge. Cancelling energy debt would be game-changing. For children, it would mean less stress at home, safer living conditions, and a fairer chance to thrive. Energy debt on this scale is not a personal failure. It is a sign the system is failing families.”
Emma Bacon, Executive Director of Sweltering Cities, said:
“The energy debt trap puts people at risk of severe heat health impacts in our increasingly hot, dangerous summers. We have found that ¼ people are concerned about energy cost daily, and that over 60% of people say that during summer concerns about cost stop them turning on air conditioning. Living in a hot home and sweating through baking days and sweltering nights has significant mental and physical health impacts on people of all ages.
“Cancelling household energy debt will help make hundreds of thousands of households safer in the next hot summer. It’s time for the government to act.”