The safety net has been pulled out from under Australian energy consumers, leaving more than one in six households struggling to settle their latest electricity bills.
New data released today by Canstar reveals the expiration of federal energy rebates is creating "hip-pocket havoc" nationwide.
A survey of 3000 respondents found that 72 per cent of households have already seen their costs climb since the subsidies ended, with nearly 20 per cent of those people now unable to meet the higher costs without significant strain.
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Australian Bureau of Statistics (ABS) inflation data for January, released yesterday, showed a sharp spike in electricity prices.
Electricity prices jumped as the first quarterly bills without government discounts hit letterboxes. This "rebate roll-off" comes on top of a 4.5 per cent underlying increase in electricity prices over the past year, the ABS data showed.
For the past 18 months, the federal government provided a total of $450 in relief, delivered in $75 quarterly rebates. With the final payment made in late 2025, millions of Australians are now facing the full brunt of market rates.
While a quarter of surveyed households say they can still comfortably afford their bills, nearly half of the population admits to being concerned about future payments.
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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.
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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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