One in Six Households Faces Challenges with Power Bill Payments Amid Disappearing Rebates

New insights from Canstar unveiled today highlight the financial turmoil households are experiencing nationwide due to the cessation of federal energy rebates.

A survey encompassing 3,000 individuals revealed that since these subsidies have lapsed, 72% of households have witnessed an uptick in their expenses. Alarmingly, nearly 20% of these respondents report that managing the increased costs is causing significant financial strain.

As the first quarter’s bills devoid of government discounts reach consumers, electricity prices have surged. This “rebate roll-off” coincides with a 4.5% underlying rise in electricity prices over the previous year, as indicated by ABS data.

Over the past 18 months, the federal government extended $450 in assistance through $75 quarterly rebates. With the final installment paid in late 2025, millions of Australians are now confronting the full impact of prevailing market rates.

While 25% of surveyed households still find their bills manageable, almost half express anxiety over their ability to afford future payments.

A further 12 per cent of respondents have already begun making other financial sacrifices just to keep the lights on.

Canstar’s data insights director, Sally Tindall, said the rebate had acted as a vital shock absorber that has now reached its limit. 

“Now it’s gone, reality is starting to set in for millions of households across the country who have to face paying the full bill, all by themselves, with thousands already struggling to pay it,” Tindall said.

Despite the grim outlook, Tindall suggested that consumers could effectively “create” their own discount by moving away from average-priced plans. 

A Canstar analysis showed that a typical household switching from an average plan to the lowest-cost provider could save hundreds of dollars annually.

In Canberra, the potential savings reach as high as $382 in the first year – an amount equivalent to more than five of the old $75 government instalments. 

Significant savings are also available in other major cities, with Adelaide residents able to save approximately $311 and Brisbane residents around $300 by switching.

What to do if you can’t pay

For those staring down a bill they cannot afford, several avenues of support remain available. Energy retailers are legally obligated to provide financial assistance, which can include tailored payment plans or hardship programs.

The National Debt Helpline (1800 007 007) offers free advice on prioritising bills and negotiating with providers. 

Various state-based programs, such as the NSW Energy Accounts Payments Assistance or the Victorian Energy Assistance Program, also continue to offer emergency relief for eligible residents.

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