Heating hardship: 4.9 million households can’t afford to stay warm this winter
![Woman in winter_Canva_1800x1000 Woman in winter_Canva_1800x1000](https://www.finder.com.au/finder-au/wp-uploads/2024/08/Woman-in-winter_Canva_1800x1000.jpg)
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.
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.
Mariam Gabaji, utilities expert at Finder, said rising energy bills and the uncertainty of wholesale electricity prices are overburdening stretched household budgets.
"Years of steep electricity bill increases have left Aussies paying significantly higher costs.
"Somes face the impossible decision between buying food or heating their homes as the cost of living crisis reaches a breaking point."
Gabaji said millions are unable to keep their homes warm through July and August due to money worries but also poor insulation.
"An estimated 80% of the housing stock in Australia is poorly insulated and can get very cold during winter.
"Research suggests these homes have an energy efficiency rating of 2 stars or less out of 10.
"An old home with no insulation is like living in a tent," Gabaji said.
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.
On average, gas heaters work out more expensive ($274) compared to electric heaters ($239), but it depends on the state where you live.
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.
That's equivalent to almost $1.7 billion spent nationally on staying warm during the cooler months.
Gabaji said Australians spent $1.1 billion in loyalty tax on electricity in 2023.
"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.
"If you are experiencing extreme difficulty paying your energy bill, talk to your retailer about their hardship program."
Finder's data shows Australians spent $387 on average on their quarterly electricity bill in July.
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% |
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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