Soaring energy bills have dented confidence in the market as consumers feel they are not getting value for money from gas and electricity services.
A consumer sentiment survey conducted by Energy Consumers Australia revealed market confidence was the lowest it had been since 2018.
More than 2200 households and 500 small business owners were surveyed nationwide, with energy costs identified as a major concern.
Just 54 per cent of households believed their electricity service provided value for money, compared to 59 per cent a year ago and 67 per cent in 2021.
Confidence that technological advances would help better manage energy supply and costs also fell.
The fall was particularly noticeable in the largest states, down six percentage points in NSW and seven percentage points in Victoria.
Additionally, consumer satisfaction with competition in the gas market fell three percentage points to 60 per cent.
A lack of confidence in the market could spell trouble as Australia transitions from coal and gas to renewable sources, Energy Consumers Australia chief executive Brendan French warned.
"Consumers do not have trust in the market, yet we need them to be engaged for the energy transition to be successful," he said.
"Consumers need support and good information on energy to give them the confidence to engage with the energy market - and that need will only increase as we make the transition to net zero."
Dr French said a one-stop-shop for information would assist consumers in understanding how to reduce energy use and cost, particularly as more people reported struggling with rising bills.
"If we don't provide that help, the energy divide will increase and things will continue to get worse for an increasing number of households," he said.
"This should be a wake-up call for the entire industry."
