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Newcastle Herald
Newcastle Herald
Matthew Kelly

'Devastating': Cost-of-living crisis hits home with more people struggling to pay energy bills

Hunter households are buckling under the weight of soaring energy bills, with an increasing number seeking help to make ends meet.

Complaints from Hunter residents to the Energy and Water Ombudsman NSW about high bills were up 39 per cent for the first quarter of the year.

At the same time, the region's welfare agencies have reported an increase in the number of people struggling with cost of living expenses.

"High bills are stressful for most customers and particularly worrying for customers experiencing affordability difficulties and/or vulnerable circumstances," NSW Energy and Water Ombudsman Janine Young said.

Janine Young

"The cost of living crisis combined with increased energy prices is leaving many customers at risk. We hope to reach these potential customers before they are affected by mounting debt or disconnection."

Household energy bills will increase by a further 39 per cent in the next year due to factors including Australia's transition to a clean energy economy, the Institute of Public Affairs estimates.

For many, increased mortgage costs are adding to their financial burden.

The St Vincent de Paul Society NSW supported 7,030 people with $529,000 in financial and material assistance in the Maitland-Newcastle region between January and May 2022.

Between January and May 2023 (to date) the organisation supported 7,157 people with $556,000 in financial and material assistance.

A rising number of people are finding themselves in need for the first time.

"We are seeing first-hand the devastating effects of the cost-of-living crisis with 30 per cent of people seeking assistance from our members in NSW doing so for the first time," St Vincent de Paul Society NSW chief executive Yolanda Saiz said.

It was a similar situation at Samaritans, with emergency relief centres reporting an increase in demand for the State Government Energy Accounts Payment Assistance vouchers.

Ms Young said if a customer receives an unexpected high bill, they should contact their provider, outline their concerns and ask for an explanation of the charges on the bill.

"If the provider can't explain the bill, they can request a full investigation. If they're not satisfied with the response, they can contact EWON at any time for independent advice or to investigate the accuracy of the bill," she said.

"If customers anticipate having trouble paying their bill, they should contact their provider, or EWON straight away. The provider can help them arrange a payment plan or affordability program to avoid debt and disconnection. There are also rebates and payment assistance vouchers for eligible customers struggling to pay."

Under a $1.5 billion bill relief measure announced in last week's budget, pensioners, small businesses and people on government payments will have their electricity subsidised.

State and territory governments will also contribute to the scheme, bringing its cost up to about $3 billion.

To see more stories and read today's paper download the Newcastle Herald news app here.

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