Power bills are costing some households more than rent and energy retailers are on notice that unless prices come down they'll face federal government intervention.
Federal minister Craig Laundy says a report by the Australian Energy Market Commission, which found just 39 per cent of Australians trust their energy retailer, didn't surprise him at all.
"You now have the absurd situation where electricity bills are outstripping the cost of rent, and you're seeing that particularly in regional centres where the rents are obviously lower than the CBD," he told reporters in Sydney on Friday.
The watchdog's report also revealed people feel they get better value for money from banks, phone and internet providers than their power companies, prompting a warning from Energy Minister Josh Frydenberg.
"My message to the retailers is unless they get prices down and they pick up their act, you will see more (government) intervention because that's what the public will demand of their political leaders," he told ABC radio.
The government's proposed National Energy Guarantee is a way to avoid that intervention, but also stabilise the market and lower prices, he said.
Mr Frydenberg admits hyper-partisanship has delivered uncertainty until now, contributing to higher prices.
Energy Minister Josh Frydenberg has put power companies on notice. Source: AAP
He also blames low trust on the fact people find their bills too complex and discounts hard to compare or highly conditional.
"And you only get a better deal from your energy retailer when you threaten to leave, so in fact, the retailers are rewarding disloyalty instead of the loyalty of their long-term customers," he said.
Senior Labor MP Anthony Albanese said policy uncertainty over five years had led to a lack of investment in renewables, driving prices higher.
"They have had a war on renewables. What that led to was uncertainty, a lack of investment and higher prices as well as higher emissions," he told the Nine Network.
The AEMC quotes a customer survey in April which found just 45 per cent of customers felt positive they were getting value for money from their electricity provider.
"While prices are now flatter or falling, we are disappointed to see retailers are still not doing enough to help their customers," AEMC chairman John Pierce said.
Anthony Albanese has also slammed energy retailers. Source: AAP
That compared to positive results of 57 per cent for gas services, 61 per cent for internet services and 70 per cent for banks.
Mr Pierce believes there's nothing stopping retailers being more innovative or cost-competitive, but they've been slow to act and consumers who can afford it are increasingly turning to do-it-yourself power alternatives like rooftop solar panels.
Almost two million households are using residential solar power sources - a number he expects will continue to rise.
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