Heating hardship: 4.9 million households can’t afford to stay warm this winter
Millions of Australians are choosing shivering over high electricity costs, according to new research by Finder.
A Finder survey of 1,049 respondents revealed 49% of Australians – equivalent to 4.9 million households – have gone cold for fear of a high energy bill this winter.
The research found 1 in 8 (13%) go without heating 'all the time', while a further 36% admit they avoid using the heater as often as they can.
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More than 1 in 4 Aussies (26%) said their energy bill was one of their top 3 most stressful expenses in July, according to Finder's Consumer Sentiment Tracker.
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Mariam Gabaji, utilities expert at Finder, said rising energy bills and the uncertainty of wholesale electricity prices are overburdening stretched household budgets.
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"Years of steep electricity bill increases have left Aussies paying significantly higher costs.
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"Somes face the impossible decision between buying food or heating their homes as the cost of living crisis reaches a breaking point."
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Gabaji said millions are unable to keep their homes warm through July and August due to money worries but also poor insulation.
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"An estimated 80% of the housing stock in Australia is poorly insulated and can get very cold during winter.
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"Research suggests these homes have an energy efficiency rating of 2 stars or less out of 10.
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"An old home with no insulation is like living in a tent," Gabaji said.
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Finder looked at running costs for 70 electric heaters and 10 gas heaters to work out how much it would cost on average to run a heater this winter.
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On average, gas heaters work out more expensive ($274) compared to electric heaters ($239), but it depends on the state where you live.
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The research shows it will cost the average household $257 to run a single heater – up from $228 in 2023 – at a daily cost of $2.82.
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That's equivalent to almost $1.7 billion spent nationally on staying warm during the cooler months.
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Gabaji said Australians spent $1.1 billion in loyalty tax on electricity in 2023.
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"Comparing your energy plan options at least once a year is the best way to make sure you're on a competitively-priced electricity plan.
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"If you are experiencing extreme difficulty paying your energy bill, talk to your retailer about their hardship program."
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Finder's data shows Australians spent $387 on average on their quarterly electricity bill in July.
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| Have you gone cold for fear of a high winter energy bill? | |
|---|---|
| Yes, all the time | 13% |
| Yes, I try to avoid using the heater as often as I can | 36% |
| No, it's not cold enough where I live | 13% |
| No, I always have the heat on when I need it | 37% |
Sources
Methodology
- Finder's Consumer Sentiment Tracker is a monthly recurring nationally representative survey of more than 60,000 respondents.
- Figures in this release are based on 1,049 respondents from July 2024.
- The Consumer Sentiment Tracker is owned by Finder and operated by Qualtrics, an SAP company.
- The survey has been running monthly since May 2019.
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