The number of Australians accruing hefty power bill debt has reached a five-year high in a major blow to households struggling with elevated costs.
Figures from the Australian Energy Regulator show 164,748 residential electricity customers in NSW, Queensland, South Australia, Tasmania and the ACT had power bills overdue by 90 days in the first three months of 2026.
This is 15,000 more customers than during the same period in 2025.
Meanwhile, these customers’ average debt has lifted from $1679 a year ago to $1764 in the recent data.
It comes as inflation picked up in the second half of last year and into the beginning of 2026 – even before the oil crisis set in.
Labor ending its power rebates has also weighed on households struggling with financial pressures.
Electricity prices rose 21.1 per cent in the 12 months to May but would have lifted 3.9 per cent without the impact of the rebates.
The rise in households falling behind on the power bills can heap pressure on hardship programs or debt recovery action.
Some households may face referrals to debt collectors while others could be disconnected from their power if they fail to contact their retailer.
More than 150,000 electricity customers were signed up for hardship programs at the end of March.
This is an increase of almost one-third compared to a year earlier and the average level of debt owed by these households lifted from $1985 to $2438.
The rising debt comes as millions of Australians are expecting to go cold this winter to avoid a power bill shock.
Research from Finder showed 79 per cent of Australians were taking action to save money on their bill.
About half said they will wear extra layers while 49 per cent said they will switch off the lights more.
A worrying 12 per cent of Australians – equal to 1.2 million people – said they will not run their heater to avoid high power prices.
Finder’s utilities expert Mariam Gabaji said it was “confronting” to see so many Australians shun their heating to save funds.
“Energy prices remain stubbornly high, and it’s forcing people into difficult trade-offs between comfort and cost. For some, that means enduring a cold home,” Ms Gabaji said.
“Going without proper heating isn’t just uncomfortable – it can have real impacts on health and wellbeing, particularly for older Australians and young children.
“The pressure of rising energy bills can also spill into other areas of the budget, with families cutting back on essentials to make ends meet.”
Meanwhile, Australian customers whose power was disconnected owed an average of $2509.
The number of disconnections has more than doubled over the past year while referrals to debt collection agencies lifted almost 40 per cent.