Bill shock in store for poor as COVID-19 and cold weather bites

Tango Energy

An energy retailer is predicting a 40 per cent spike in household electricity consumption as Australians try to stay warm while staying at home.

Tango Energy chief executive officer Domenic Capomolla says the company’s residential customers used 25 per cent more electricity last month compared with April 2019.

Mr Capomolla believes the upward trend is due to people spending considerably more time at home.

He is advising Australians to keep tabs on their energy consumption while social distancing, especially during spells of cold weather like last weekend.

‘We saw at least a 25 per cent increase in household electricity consumption in April compared to the same month last year,’ Mr Capomolla said.

‘And we’re predicting that could increase up to 40 per cent this month as the mercury drops and isolation measures stay in place – unless consumers take preventative action.

‘People are working from home and staying inside so it is likely they are keeping their lighting and heating on, and powering their electronic devices, for longer periods of time.’

Mr Capomolla said he was concerned about the added energy costs of staying and working from home, particularly for lower income and regional families.

The Australian Energy Regulator found that in 2019, low-income households on median market energy offers already paid about twice the proportion of their disposable income for electricity than an average-income household.

He said discrepancies between the assurances given by the Australian Energy Regulator and the Essential Services Commission on whether consumers could be disconnected during COVID-19 were confusing for families experiencing financial hardship.

Tango Energy has assured its customers it will not be disconnecting households from its services for not being able to pay bills during the lockdown period.

‘We recognise we are a service essential to people’s health, safety and well-being during a period of great uncertainty,’ Mr Capomolla said.

‘We’ve set up a COVID-19 support page that helps people struggling with bills to make payment arrangements, extensions and how to access government grants ad assistance with utilities.’

The CEO shared some tips on saving energy while staying at home.

· Heating only the rooms you are using

· Closing doors and using draft snakes under doors

· Wearing extra layers during the day

· Swapping light bulbs with halogen incandescent bulbs, compact fluorescent lights (CFLs), and light-emitting diode bulbs

· Unplugging appliances when they are fully charged or not in use

· Turn off the 2nd fridge if you can

· Using natural light during the daytime

· Getting active to raise body temperature

/Public Release.