As an energy provider committed to serving the interests of our clients, Next Business Energy takes pride in offering current, clear, and comprehensive information regarding energy developments in Australia.
The Energy Bill Relief Fund is a landmark initiative designed to cushion the effects of rising electricity costs on households and small businesses.
Unpacking the Energy Bill Relief Fund
The Commonwealth is partnering with states and territories to provide a staggering $3 billion of electricity bill relief. The Energy Bill Relief Fund aims to extend support to eligible households and small businesses, effectively making energy costs more manageable for those who need it most. This fund is to be administered by the respective states and territories, ensuring that help is efficiently distributed.
The Impact on Electricity Prices
Prior to the introduction of the Energy Price Relief Plan, electricity customers were staring down the barrel of a forecasted 36% increase in electricity prices for the year 2023-24. However, the Government’s proactive measures since December have managed to curb this hike.
Support for Small Businesses
The Energy Bill Relief Fund provides substantial support to small businesses, alleviating the impact of rising electricity costs. Under this initiative, the Commonwealth, in collaboration with states and territories, will contribute a total of $3 billion towards bill relief. The fund aims to make energy costs more manageable for eligible households and small businesses.
To support small businesses, the Commonwealth will contribute $325 per eligible customer. The total bill relief amount varies based on the approach taken by each state and territory government:
- New South Wales, Queensland, Western Australia, South Australia, Tasmania, and the Northern Territory will match the Commonwealth’s contribution of $325, resulting in a total rebate of $650 per customer, paid in quarterly instalments.
- The Australian Capital Territory has implemented the Large-scale Feed-in Tariff Scheme (the Scheme), which lowers electricity tariffs for all households and businesses. In 2023-24, the Scheme will provide $75 million in direct bill relief. The relief amount for businesses will depend on their electricity consumption, with an average business estimated to receive relief of $624 per annum.
- Victoria will administer the Commonwealth’s rebate to small businesses with a one-off payment of $325.
Payments will be made to eligible small business customers – on their electricity account, with the first payment scheduled at the end of July. Only one account per eligible customer will have the Energy Bill Relief payment credited to it.
At Next Business Energy, we understand the challenges faced by businesses, particularly in times like these. The Energy Bill Relief payments provide relief from rising energy costs and represent a positive step forward and we assure you that we are here to assist with any questions or concerns you may have. Our commitment is to help you navigate these changes, optimise your energy consumption, and make the most of the resources available to you.
Who is Eligible?
While the Energy Bill Relief Fund is a boon for many, it’s important to understand the specifics of eligibility to ascertain whether your business can benefit.
Eligible small businesses that meet the definition of electricity ‘small customer’ according to the thresholds in each jurisdiction will receive bill relief automatically. These thresholds are already in use in most jurisdictions to govern business support and consumer protection arrangements for small business electricity consumers. Small businesses whose combined consumption is above the threshold in their jurisdiction will not be eligible for the bill relief fund.