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Victorian community workers fear energy price rises will mean people could die

ABC Business logo ABC Business 22.06.2023 03:54:19
A Salvation Army worker says power bill increases will kill people this winter. (ABC News: Natasha Johnson)

A year ago Mark Thomas was seeing about 80 people at the free community meals he helps organise at the Salvation Army church in Hamilton in south-west Victoria. 

Now he sees about 110 people.

Similarly, the number of houses he delivers food packages to around the Hamilton region has gone from 16 to over 30.

Mr Thomas, a Salvation Army community development worker, said that with electricity prices expected to rise for thousands of people on July 1, things are only going to get worse for many of the people relying on organisations like the Salvos to survive.

"It will actually cause deaths," he said.

"People won't be able to afford to heat their homes in winter.

"I've got people now that sleep in their armchairs covered in blankets because they can only afford to heat one room, and they only heat that for four or five hours a day at the most.

"If it's a sunny day like today, they'll be out in their car. They won't be able to drive anywhere, but they the sun coming in [through the windows] will keep them warm in their car.

"I've got people with children, they've got extra blankets, and they're only heating their houses a couple of hours a day now.

"I've had people tell me 'obviously the government doesn't care about us because they're not helping us. They're just letting whatever happens happen. We can't heat our homes. We can't afford to drive anywhere or to do anything or even have enough food to have a proper meal once a day'.

"They're at their wits' end. A lot of people."

The Electricity Services Commission (ESC) recently announced a 25 per cent increase in electricity costs in Victoria from July 1.

The final 2023-24 Victorian Default Offer will result in a $352 annual increase for residential customers, which means a typical household bill under the offer will rise from $1,403 to $1,755 next financial year.

The offer is for people "unable or unwilling to engage in the retail market", according to the ESC.

Ballarat resident Brendan Johnson has not turned his heater on in six years because it is too expensive.

He said it can make it make it tough to get out of bed in the morning.

"I don't doubt the cold weather and not having a warm house does impact on my mental health," Mr Johnson said.

"It is that challenge of thinking this is an extra thing I need to do - I need to put on warm clothes, an extra blanket, and an extra pair of socks.

"That is the bit I struggled with earlier in the week and is part of this time of year."

David Lodge, a financial counsellor with social service Meli in south-west Victoria, said people are already forgoing necessities to get by.

"We're hearing that people are going without medicines to pay rent, or going without food," he said.

"It's a major concern because people are already struggling before this first of July [power bill] increase happens.

"It's going to make the situation a lot more difficult.

"It will push more people into looking around for vouchers and free community meals."

Mr Lodge said he was seeing an increase in the number of people with jobs and mortgages seeking financial support, as well as the number of people taking out high-interest, "after pay" loans to buy food and pay rent, leading to further financial problems down the track.

"There's a bit of desperation out there," he said.

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jeudi 22 juin 2023 06:54:19 Categories: ABC Business

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