The hidden energy charge Australians may be paying too much for

Consumer groups are urging the Australian Energy Regulator (AER) to drop unnecessarily high fee costs, which are being added to every customer’s bills, during a cost of living crisis.  

The AER’s 2026 Rate of Return Instrument (RORI) is a complex process which determines the amount consumers pay to energy networks in order to compensate for infrastructure investments such as poles and wires.

Energy Consumers Australia (ECA) are advocating for the AER to make key changes to the RORI draft, which was released in May, to provide home owners and small businesses with more clarity on how their money is actually being used and why the rates are so high.

Customers struggling with rising energy costs

ECA CEO Brendan French says “more than a billion dollars of consumer’s hard-earned money is being poured down the energy network drain,” adding more strain to consumers in a financially stressful period.

With the cost of necessities such as heating and groceries becoming more concerning for consumers, he stresses that complex and additional charges on energy bills are the last thing Australians need.

The AER states on its website that it aims to ensure a reliable and secure market for consumers to access and that “they pay no more than necessary for energy to their homes and business.” 

However, Consumer Action Law Centre CEO Stephanie Tonkin says unaffordable energy bills are one of the main issues people are speaking to their financial counsellors about on the National Debt Helpline.

“The data shows that the amount people are owing on these bills is increasing and becoming impossible to pay down,” she says. 

CHOICE has found similar issues through recent consumer surveys of more than 1000 Australians. In March 2026, 78% of Australians said they were concerned about the current cost of electricity and more than one third found electrical and gas plans to be complicated.

Future solutions and bill relief needed

In the draft proposal for the 2026 RORI, the AER seems to be taking a step forward at addressing the high costs. However, Energy Consumers Australia says this needs to go further to actually fix the problem. 

ECA CEO Brendan French says there are still “hundreds of millions” of dollars that could be returned to small businesses and households. The ECA is advocating that the costs for infrastructure should be recovered from consumers at the lowest rate possible and this is just not being seen yet.

The AER’s conclusion on the review process will be released in December. 

The review is meant to clearly calculate the rate that energy networks are allowed to make for investments into infrastructure. With the current regulatory powers seeming to profit off consumers unnecessarily, the ECA is calling for this final decision to return some of the lost money back to consumers.  

The ECA says the regulator needs to make sure a fairer, transparent and cost-friendly system is implemented. 

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Riley Dezelak

Riley is in her final year at RMIT University majoring in Journalism with a minor in Literary Studies. She has a passion for impactful journalism and through her studies she has gained experience crafting meaningful stories through radio, broadcast production and news writing. She has previously contributed to student news organisations such as Newsline, as well as projects with local radio at Southern FM.

Riley is in her final year at RMIT University majoring in Journalism with a minor in Literary Studies. She has a passion for impactful journalism and through her studies she has gained experience crafting meaningful stories through radio, broadcast production and news writing. She has previously contributed to student news organisations such as Newsline, as well as projects with local radio at Southern FM.