Low-income households in Australia are increasingly at risk of “energy poverty”, a University of Sydney study has found.

A paper published in the Australian Journal of Social Issues reports that more and more households are spending more than 10% of household income on energy bills. As a result, an increasing number of Australian families face a choice between essentials such as food and electricity.

In Victoria, the leading reason for rental arrears are energy bills.

“A new approach to electricity pricing is needed to prevent adverse impacts on the standard of living for millions of Australians,” the report’s author, Dr Chester said.