A report released by ACOSS and the Brotherhood of St Laurence has revealed the economic stress that rising electricity prices are having on low income and disadvantaged households.

Energy Stressed in Australia exposes how these households are paying disproportionately more of their income on energy than that national average. When combined with the current housing affordability crisis, low wage inflation and long-term unemployment, Australia’s rising electricity prices are imposing significant stress on low income households such that some elect to go without heating and cooling, meals and other basic essentials in order to afford their energy bills.

The report finds that low-income homes are hit the hardest, with these households spending 6.4% of their income on energy, while households of the highest 20% spend far less to their relative incomes – an average of 1.5%. Low-income renters are particularly vulnerable to energy stress with tenants having less ability to install simple energy performance upgrades that would help reduce their electricity consumption.

ACOSS and the Brotherhood of St Laurence recommend:

• Reducing energy prices for all
• Reducing energy stress for vulnerable households by introducing measures including the establishment of mandatory energy efficiency standards for rental properties supported by tax incentives for landlords
• Supporting the access of vulnerable and low-income households to solar and batteries
• Establishing benchmarks by which energy affordability can be measured over time

More information here