Power up: How to get a rebate on your electricity bill
Feeling the sting of yet another surging power bill? There is some relief on the way – providing you meet the eligibility criteria.
Handing down the Federal Budget on 9 May, Treasurer Jim Chalmers said more than five million households would have up to $500 deducted from their power bills in the next financial year through the Energy Bill Relief Fund.
But are you one of them?
It depends on your circumstances, and where you live in Australia, as the Federal Government had to work with the different states and territories to determine the breakdown.
What is the Energy Bill Relief Fund?
This flows on from an agreement between the Federal Government and the states and territories in December to provide extra energy rebates for Australians on low to middle incomes. At the time Prime Minister Anthony Albanese said the $1.5 billion energy price relief package, which also put caps on coal and gas prices, was necessary given the “extraordinary times”.
The Energy Bill Relief Fund announced in the Federal Budget outlines the criteria and the dollar breakdown across the country. To be eligible you must:
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- Be the primary electricity account holder or another named holder on the account
- Hold an eligible concession card (such as a Pensioner Concession Card or a Health Care Card), or
- Receive an eligible government payment (such as Family Tax Benefit) in the state or territory you live in.
The fund also offers relief to small businesses on a separately metered business tariff with their electricity retailer and with annual electricity consumption less than their state or territory’s threshold. If you are operating your business from home, it is unlikely you will be eligible.
How much will I get?
Eligible households will receive between $175 and $500, while eligible small businesses will receive between $325 and $650 in rebates. The amount varies depending on the arrangement with the state or territory. Please note: all figures are only for those who meet the eligibility criteria.
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- ACT - households will receive $175 (the ACT’s tariff scheme also lowers bills in the territory by an average $152); small business will get $325
- NT and WA - households will receive $350; small business $650
- NSW, QLD and SA - households will receive $500; small business $650
- Tasmania - households will receive $250pa for two years; small business $650 for 2023-24
- Victoria - households will receive $250, plus $250 Power Saving Bonus; small business $325
How will I receive the rebate?
There won’t be extra cash to splash. The money will appear as a credit on your energy account. How and when that happens again depends on where you live.
If you’re in NSW, Queensland, South Australia, Northern Territory or the ACT, it will appear quarterly on your bill in the 2023-2024 financial year.
In Western Australia, the bill relief will be on your accounts in July and December 2023, while Victoria will provide relief in instalments in 2023-24.
In Tasmania, it will be divided into the September and June quarters of the 2023-24 and 2024-25 financial years.
It’s important to note that even if it is spread across instalments, there is only one rebate per household, even if you have more than one person living in your home.
What do I need to do?
In most cases, you won’t need to do anything. If you meet the eligibility criteria, the electricity provider should automatically credit your account when required. However, if you believe you are eligible for a concession scheme and aren’t getting it, contact your electricity supplier. You can also see what rebates you might qualify for by using the Services Australia online tool.
What if I’m not eligible?
There is still some relief, although – again - it varies according to where you live. The WA Government just announced that every household, regardless of circumstances, would be given a $400 discount on their energy bills in the next financial year. To be paid in two instalments in July/August and November/December, it’s a repeat of the cost-of-living credit handed out last year.
In Victoria, you can still apply for the Power Saving Bonus of $250, even if you have received a payment in previous rounds. This energy comparison site basically incentivises you to take a closer look at your bill, which we should all be doing given our average electricity bill is $1645 per year. You simply need to have a residential electricity account in Victoria to apply.
What else can I do?
There are ways to save money on your energy bill wherever you are. If you live in a state with a choice of energy retailers (the company that manages your account and issues your bill), shop around for a better deal. Energy rates fluctuate considerably, so keep an eye out for the best deals and incentive programs. And you shouldn’t lose power when you switch, either.
Another way to save money is to replace old appliances with more energy-efficient ones – we're talking the ones you use the most, such as the refrigerator and washing machine. It might cost you more upfront but will save you in the long run.
Think twice before you turn on the heater or the airconditioner – would adding an extra layer or removing a layer do the job just as well? Turn off lights when not in use and remember to switch off appliances at the wall, too. It's all about creating good habits as little things can save you a lot, too.
Keep an eye on your electricity bill
This is not just to see if any rebate you are entitled to lobs on time (though you should chase the credit up with your retailer if it does not). It’s about keeping track of fluctuations and being aware of any big changes not just from one season to the next – you’re more likely to have higher bills in summer and winter – but from one year to the next.
What can you do to keep usage down? And if you know that you are going to be in for a heftier bill at certain times of year, ask you provider to apply 'bill smoothing' to your account – this adjusts your bill to flatten those seasonal peaks and provide consistent payment amounts throughout the year. You can also ask for your bill to be sent monthly, rather try to budget for quarterly bills.
If you think there’s an error on your power bill, contact your energy retailer as soon as possible. They will be able to investigate the issue and correct any mistakes.
What if I can’t pay my bill?
With the rising cost of living, as many as four in 10 Australians are suffering financial hardship according to the National Australia Bank, with one in five missing a utility payment in the three months to March.
It may be small comfort to know that you are not alone, but there is help available. Get in touch with the provider as soon as possible to explain you are having difficulties paying your bill. Use the words 'financial hardship' and the staff member should discuss your options to repay the amount owing. If you don't organise a payment plan, you might have your power disconnected.
As always, if you have a problem with your electricity provider, lodge a complaint with us and we’ll help you handle it.
