NSW families are struggling with growing gas bills and poor customer service, with the number of gas customers on hardship payment programs jumping by more than 50 per cent in the past year.
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The overall number of complaints to the state's Energy and Water Ombudsman fell by 22 per cent to 23,760 in the past financial year, but the proportion relating to gas grew from 18 per cent to 24 per cent, according to the annual report.
While the number of electricity customers on hardship programs rose by 8 per cent between June 2015 and March this year, the number of gas customers jumped by an astonishing 52 per cent.
"Unfortunately, the availability of payment plans and hardship programs has not led to fewer [energy] customers being disconnected from supply," said Ombudsman Janine Young.
"Most quickly reconnect through family loans, payday lenders and forgoing food, but others may experience a longer term off supply."
Residential electricity and gas disconnections are expected to reach 32,000 – about the same as the previous year – according to the Australian Energy Regulator.
More than one-quarter of all complaints were about affordability, despite the rate of price rises for electricity and water easing. They related to disconnections, denied payment plans, large arrears and debt collection.
Reflecting high levels of financial stress, the report revealed a 188 per cent increase in referrals to a financial counsellor.
Ms Young said during her visits to remote Aboriginal communities, it was common to see quarterly electricity bills soar to $2000 or more.
"Those who can least afford it often have the highest energy costs. Poorly insulated homes and appliances that are cheap to buy but expensive to run are often the norm," she said.
"We need more energy-efficient, affordable housing, which delivers the benefits of new, low-cost energy products and services to vulnerable consumers."
As part of Anti-Poverty Week, St Vincent de Paul will launch a petition calling on the government to change planning laws so at least 15 per cent of new residential developments are set aside for affordable housing where rent is less than 30 per cent of income.
"For example, the government announced the new Olympic Park precinct, and the ministers need to make the most of the opportunity to set a minimum threshold for affordable housing, at least 15 per cent," said Jack de Groot, head of St Vincent de Paul Society NSW.
Energy Minister Anthony Roberts said the government had boosted assistance for low-income households to more than $1 billion over the next four years.
He added it had extended the gas rebate to low-income households that use LPG for their basic needs.
"This government introduced the $90 gas rebate from July 1, 2015, and LPG customers have been able to access this assistance since July 1, 2016," he said.
"LPG customers will have the same eligibility criteria and must hold one of several low-income concession cards."
Tracy Howe, chief executive of NSW Council of Social Service, said the government had to raise awareness about the energy rebate, which is being under-utilised.
"Also, we have a problem with the flat rate mechanism of the rebate," she said. "Living conditions can be quite different, so it should be percentage-based, reflecting the needs of the family or individual."
The Australian Energy Regulator's figures for the first three quarters of 2015-16 show the number of energy customers in debt has declined by 2 per cent compared to the previous year's figure.
The average electricity debt for residential customers decreased from $631 in June 2015 to $624 in March 2016.
In comparison, the average debt owed by gas customers increased from $444 to $509 in the same period.
The government recently announced it would deregulate retail gas prices from July next year, promoting competition.
Jonathon Hunyor, chief executive of the Public Interest Advocacy Centre, said wholesale gas prices were unstable and price rises were anticipated.
"While in theory, [the deregulated] newly competitive market should provide a better deal for consumers, we know that many households are not taking advantage of market contracts," he said.
The increase in gas complaints can also be linked to the expansion of the gas network and a larger number of gas customers in NSW.
The overall decline in energy and water complaints partially reflects improvements in the providers' delivery of services and handling of complaints.
Mr Roberts encouraged customers to shop around for the best deals and visit www.energymadeeasy.gov.au.
