Key Points
- Australians are being hit with heightened living costs as a result of rising inflation
- Every state and territory is offering support when it comes to gas and electricity bills, but who's eligible?
As Australians head into winter, many are worrying about price hikes on their energy bill that may leave them hesitant to turn on the heating.
It's been described as a perfect storm. While the war in Ukraine has affected coal and gas supply and caused global commodity prices to soar, extreme weather in NSW and Queensland has increased energy demand at a time when coal-fired power stations across the country have experienced outages.
So what is the Albanese government doing to solve the issue in the immediate and long-term, and how are state and territory governments easing cost-of-living pressures in the meantime? And importantly, how can Australians assess their eligibility and access the support?
Will energy bills keep getting more expensive?
In May the Australian Energy Regulator approved price increases from 1 July, which will see the tariffs, known as default market offers, rise by between 8.5 per cent and 18.3 per cent in New South Wales, up to 12.6 per cent in south-east Queensland and 9.5 per cent in South Australia.
AER Chair Clare Savage said the decision to raise prices was "difficult" considering millions of Australians were already struggling with a soaring cost of living, but necessary given the rise in fuel costs experienced by energy providers.
"In setting these new DMO prices, we understand the significant impact they will have on some consumers who may already be struggling with cost of living pressures," Ms Savage said.
"If a large number of retailers are unable to recover their costs and are forced to exit the market — as we have seen recently in the United Kingdom — that will add more cost to consumers."
What is the government doing to improve energy supply?
The Australian Energy Market Operator has just triggered the Gas Supply Guarantee Mechanism for the first time since the measure was introduced in 2017 in order to secure gas for power generators and ward off a potential shortfall in southern states.
to keep a lid on rising gas prices, but a failure of energy policy and global pressures are making the task harder.
Mr Albanese said his government is engaging with the sector to see how it can alleviate pressure in the short term, with government ministers having spoken with gas providers to increase supply. Energy Minister Chris Bowen will meet with his state and territory counterparts this week to discuss solutions.
Over the long-term, the prime minister maintains it's about changing the energy mix. While gas will continue to play a key role, his government will focus on renewables and battery storage, with further approvals of fossil fuel projects considered on merit.
Meanwhile, Opposition leader Peter Dutton maintains nuclear power should be part of the energy debate as Australia seeks to cut both emissions and power prices.
What energy support payments are available and how do you access them?
Federal support
Those who claim the Disability Support Pension and are younger than 21 with no dependent children automatically receive a , which is paid quarterly with their regular payment and is not means-tested. If you’re single, you receive $170.30 per quarter, while those in a couple each receive $85.15.
In addition, those who receive Centrelink payments can arrange for regular amounts to be transferred from their payments to pay their EnergyAustralia bill. Centrelink's free service organises this on your behalf.
NSW
Households experiencing short-term difficulty paying their energy bills will have greater access to assistance after NSW Treasurer and Energy Minister Matt Kean in May raised the amount available from $300 to $400 per year, up to a maximum of $1,600 per year, though the .
Eligible customers can receive payment assistance of up to $400 per application for electricity and up to $400 per application for gas bills twice a year.
EAPA vouchers, which have already helped nearly 50,000 NSW families, are sent electronically to your energy retailer to help pay your home electricity or gas account. Applying for EAPA vouchers involves an eligibility assessment by a NSW government representative or an approved non-government EAPA provider.
The extra assistance is part of a $330 million per year government package that also includes energy rebates to around one million households.
Eligible households can also apply for different rebates including the Low Income Household Rebate, Gas Rebate, Family Energy Rebate, Life Support Rebate, Medical Energy Rebate and Seniors Energy Rebate.
There is a variety of support available for Australians around the country to tackle rising energy costs. Source: AAP
Queensland
With Queensland households likely to experience some of the steepest price hikes in the nation when it comes to their energy bills, Premier Annastacia Palaszczuk has offered every household a $175 on their next power bill.
Electricity providers will automatically apply the credit to the next round of household power bills so Queenslanders don't have to apply.
There is further support available for those experiencing short-term hardships. is designed to help households struggling to pay their power bills as a result of an unforeseen emergency or short-term financial crisis. It's a one-off payment of up top $720 once every two years. Queenslanders must contact their energy provider to start the process, with more information .
In addition, Queensland pensioners and seniors may be eligible for an Electricity Rebate of $340.85 per year and a Reticulated Natural Gas Rebate of $76.19 per year. To apply, people need to contact their gas or electricity provider, with more details .
Victoria
From 1 July all Victorian households will be able to access a one-off $250 Power Saving Bonus payment to help with rising living costs. Victorians must register on the to access the payment.
The existing $250 Power Saving Bonus for Concession recipients also remains open and is available until 30 June 2022 through the .
The site also helps Victorians to slash bills by comparing energy provider prices, and suggests the right retailer for various consumer needs and budgets.
for paying overdue energy or water bills are also available to low-income Victorians experiencing unexpected hardship due to a temporary financial crisis. You can receive a maximum of $650 on each utility type in a two-year period (or $1,300 for households with a single source of energy). Victorians should phone their electricity, gas or water retailer to request an application.
Concession card holders are also able to receive an direct from their energy retailer, which gives them up to 17.5 per cent off energy usage and service costs, though it does not apply to the first $171.60 of the annual bill.
Concession card holders also have access to a to help ease the cost of living through the chilly winter months.
South Australia
Households in South Australia on low or fixed incomes are able to access up to $233.60 per year in energy bill concessions to help cover both electricity and gas payments.
A separate is designed help those on low or fixed incomes with all of their cost of living expenses such as council rates, energy and medical bills. Those who have previously received a Cost of Living Concession do not need to reapply. The concession amount per eligible household is $449 for homeowner-occupiers and $224.60 for tenants.
The Acciona windfarm near Gunning, NSW. The Albanese government wants to introduce a larger proportion of renewable power into Australia's energy mix. Source: AAP
Western Australia
All Western Australian households will receive a $400 in 2022-2023 to assist with cost of living pressures, which the government says is thanks to a stronger than expected budget surplus.
It builds on the $600 credit already delivered in 2020-21.
The state also offers a to help Western Australians in financial hardship, where payment arrangements and other hardship strategies have been exhausted. People must apply through their energy provider.
Tasmania
The Tasmanian government offers an annual electricity concession that provides a daily discount to eligible customers.
To be eligible, Tasmanians must hold a Services Australia or DVA Pensioner Concession Card, a Services Australia Health Care Card or ImmiCard (Bridging Visa E).
To apply for the annual electricity concession, eligible customers should contact their electricity retailer or complete the .
Eligible Tasmanian pensioners may also be able to access the , a payment of $56 per year to help with heating costs. Two payments of $28 are made each year on 15 May and 15 September.
Eligibility is means-tested and successful applicants do not need to re-apply each year for the allowance. The allowance is available to people who hold a Services Australia or DVA Pensioner Concession Card.
Northern Territory
Members of the Northern Territory Concession Scheme can receive a concession on electricity costs calculated on a fixed daily rate of $1.274 per day plus $0.091 per kilowatt used.
Members of the scheme can get a maximum concession of $1,200 per household per financial year, available to only one member per household.
Australian Capital Territory
Concession card holders in the ACT are able to access the Utilities Concession to cover electricity, natural gas, water and sewerage. The annual concession of $750 is paid directly to eligible households rather than as a reduction applied to utility bills.
To apply, people need to contact their energy provider directly.
And what if you still can't pay your bill?
If you can't pay your bill, you should call your service provider immediately. They will be able to offer solutions such as an extension to pay, a flexible payment plan, or a referral to a debt collection agency.
If you don't contact your provider, your service may be disconnected or suspended, and your credit score may be harmed.
