ELECTRICITY prices will go up 20 per cent this week, raising fears households will be disconnected.

The Public Interest Advocacy Centre said average electricity bills would rise by $200 because of an approved price hike.

Policy officer Joel Pringle said victims of the global downturn and pensioners would struggle.

"In the middle of an economic downturn, pensioners are facing increases of over $200 dollars a year and the NSW Government is only offering an extra $18 in the energy rebate," Mr Pringle said.

He said NewStart allowance recipients were already "barely surviving" on incomes much lower than the pension rate.

Mr Pringle called for the State Government to extend the energy rebate to all health care card holders. Last financial year more than 18,000 electricity disconnections were recorded in NSW.