Brooke Mawson and her family love footy, fishing, and going for a family drive, but the rising cost of electricity is forcing them to tighten their budget.
News today that power prices will rise by 30 per cent in Victoria and up to 22 per cent elsewhere means people all over Australia with little disposable income — like the Mawsons — are going to struggle even more to afford life's simple pleasures.
"AFL is back this weekend and we love going to the footy when we can, but it's really hard with entry fees, transport, and food," Ms Mawson said.
"We probably won't be able to go for the rest of the season."
Ms Mawson, her partner, and her two children live in the Latrobe Valley, eastern Victoria, the cradle of the state's electricity production.
"It's going to be hard because you've got an allocated amount of money for rent, electricity, gas, food is going up, petrol," she said.
"We have to be very careful with what we're doing, we won't be able to go out and have dinner anymore, basically no fun stuff.
"It'll just be paying bills and trying to survive."
Ms Mawson is not alone in the struggle to stay afloat with an increasing number of regional Victorians accessing food relief, including in the Morwell Neighbourhood House where she works.
"We do over 150 to 200 meals and a lot of the times we don't have anything left by the end of the week," she said.
"A couple of older women I have in my group say they don't turn the heater on, they just sit in their bed and keep warm that way."
Why the price increase?
The likelihood of hardship for lower-income earners comes as the Australian Energy Regulator (AER) tips an electricity price increase over the coming financial year.
The AER's decision will directly affect around 600,000 customers in South Australia, New South Wales, and South-East Queensland who are on the default offer, which is effectively a price cap for household and small business customers.
Victoria's Essential Services Commission (ESC) has released its default offer, with an even larger 30 per cent increase in household electricity prices and 31 per cent for small businesses.
The ESC said a typical household bill would rise from $1,403 to $1,829 per year, while small businesses could expect an increase from $5,620 to about $7,358.
Around 400,000 Victorian households and 55,000 small business customers are on that state's default offer, according to the ESC.
Tough times in 'such a wealthy country'
The Australian Council of Social Services (ACOSS) represents community service providers trying to reduce poverty and inequality in Australia.
ACOSS CEO Cassandra Goldie said people with the least disposable income would be hit hardest by the new price hikes.
"People on the lowest incomes do not have anything left in their budgets to cut back on and are at breaking point," she said.
"We are worried about what consequences this leaves for people, including further debt, disconnection, or homelessness.
"These are unacceptable choices to be made in such a wealthy country."
Older people to suffer
Council on the Ageing (COTA) CEO Chris Potaris said older Australians, who were more likely to have a fixed income, were likely to fall behind due to price rises.
"The impact of such a price increase is compounded by the associated rise in gas costs, which have also increased by over 20 per cent in 2023," he said.
Mr Potaris said rising electricity bills were likely to force pensioners and older people into difficult decisions.
"Greater investment, effort, and outreach is needed to make sure that all possible energy supports reach those most at risk," he said.
"There are too many vulnerable older people slipping through the gaps."
