Energy debt: how to deal with arrears and get back on track

Owing money on energy is more common than you think

Arrears simply means an unpaid balance that has carried over, money owed from bills you could not pay in full. Building up energy debt does not make you irresponsible; it usually reflects a real squeeze, a run of high bills, or a change in circumstances. What matters now is not how you got here but the clear path out, and there is one.

The single most important move is to stay in contact with your retailer rather than avoiding them. Engaged customers keep their protections, keep their power on, and get access to arrangements and grants. Silence is the only thing that genuinely makes energy debt worse.

The order to tackle it

1. Contact your retailer and ask to go on the hardship program with a payment plan that clears the arrears gradually while keeping up with new usage.
2. Make sure every concession and rebate you're entitled to is applied (our rebates and concessions guide covers each state). That can reduce the debt and future bills at once.
3. Ask your retailer and your state government whether an emergency energy voucher or bill-relief grant is available, and how to apply.
4. Call the National Debt Helpline on 1800 007 007 for free financial counselling if the debt is large or spread across several bills.
5. Check you are on the cheapest plan for your usage, so you are not adding to the debt with an inflated rate each quarter.
6. Keep every agreement in writing and set reminders, and call early if you cannot meet a payment.

Emergency vouchers and grants: check your state scheme

Most Australian states and territories run some form of emergency energy assistance for people facing disconnection or a bill they simply cannot cover. You may have heard of scheme names like EAPA in New South Wales or the Utility Relief Grant in Victoria, and other states have their own equivalents. These typically provide a voucher or credit applied to your bill, and they are separate from ordinary rebates.

Because the names, amounts, eligibility and application process differ by state and change over time, the safe move is to ask your retailer, search your state government energy or community-services website, or ask a financial counsellor which scheme applies to you and how to apply. Do not assume you do not qualify. These schemes exist precisely for people under pressure, and a counsellor or the retailer can often help you apply.

Free financial counselling is your ally

If energy debt is part of a bigger picture (other overdue bills, rent, credit or buy-now-pay-later), a financial counsellor can help you see the whole situation, prioritise essentials, and negotiate with creditors on your behalf. This service is free, confidential and independent; counsellors do not sell anything and are not there to judge you. The National Debt Helpline on 1800 007 007 is the way in.

Once the debt is on a manageable footing, make sure the underlying bills are as low as they can be so the arrears do not rebuild. Claim every rebate, and check whether an expensive plan is part of why your bill is so high. EnergySorted (about $39/year) compares your plan and its Bill Health Score flags an inflated rate, while the free Energy Made Easy site offers a basic comparison. Clearing debt and lowering future bills go hand in hand.