The Australian Energy Regulator (AER) is providing a more in-depth quarterly analysis of the retail markets with the release of a new look quarterly retail performance report.
Our latest report, released today, looks at the market from October to December 2021, analysing current trends and providing comparisons with the same time in the previous year.
Key trends from the report show a healthy sign for competition, with smaller energy retailers gradually increasing their share in a market that is dominated by Origin, AGL and Energy Australia.
Customers continue to save on cheaper energy deals with the number of residential customers on market contracts at 78% for electricity and 88% for gas at the end of the quarter.
And, in good news for retailers, customer complaints were down 16.5% on the previous year.
COVID-19 continued to impact customers during the quarter with average residential energy debt increasing by $59 to $1,056, while average small business debt decreased by $198 to $2,202.
However, customers on hardship programs increased by 3,486 compared to the previous year, signalling that more retailers were identifying and supporting customers in financial difficulty following the long lock-down periods. The average debt upon entry into a hardship program has increased and is now $1,469 at the end of December 2021.
Our Statement of Expectations stopped disconnections in areas where stay-at-home orders were in place and has been an effective tool throughout the pandemic to support vulnerable people.
Disconnections reduced during the quarter and are still only at around 25% of the levels seen prior to the COVID-19 pandemic.
The number of customers on payment plans reduced in the quarter. While payment plans that were completed or cancelled during this time, close to two-thirds were cancelled for non-payment.
Through our Consumer vulnerability strategy, we will put a spotlight on the need for improved identification of consumers who need support, for consumers to have access to affordable payment plans, and for the promotion of a trusted, ongoing, two-way dialogue between retailers and consumers who experience payment difficulty.
We want to see consumers experiencing vulnerability offered timely and effective supports that work for both consumers and energy businesses, improving energy affordability, helping consumers stay connected and reducing energy businesses’ cost to serve.
For further analysis and commentary, link to the full Q2 Quarterly retail performance report.