Red tape delays Albanese government's power bill savings

Struggling families have been forced to wait for $300 discounts on their power bills, after bureaucratic red tape delayed the Albanese government’s signature cost-of-living policy.

Bureaucratic red tape has delayed the Albanese government’s signature cost-of-living policy, with power giants still waiting for approval to begin applying new rebates to bills.

In May, federal Treasurer Jim Chalmers unveiled a $300-a-household rebate scheme that would roll out from July 1, with payments split over four quarterly payments.

At the time, Mr Chalmers said the relief, which would also go to millions of small businesses through $325 payments, was because families were feeling the pinch, and he argued it would also put downward pressure on inflation.

But struggling households who recently received bills without a credit applied have started contacting retailers with complaints, forcing Origin Energy to clarify on its website there was a “delay in rebate payments to NSW, Victorian and South Australian customers”.

The Herald Sun has learnt that a legal document that requires state and federal sign-off in those three states has not yet been finalised, blocking retailers from applying rebates.

Mr Chalmers said the rebates would help families who were feeling the pinch. Picture: Dan Peled

It can also be revealed that although an implementation date for the scheme was set at July 1 in Queensland and Western Australia, it was set at July 31 in other states. A similar bill relief scheme the previous year began on July 1.

A spokesman for the Australian Energy Council, the peak body for electricity retailers, said: “Retailers stand ready to deliver the bill relief payments as soon as possible”.

“While the payments are from the federal government they are administered by the states and territories,” he said.

“Retailers are awaiting approval of the final arrangements to allow them to deliver the payments on customer bills.

“Retailers are committed to ensuring customers receive their full entitlements in a timely manner and understand some customers are feeling frustrated or confused about when the first payment will be delivered.”

A spokesman for Origin Energy said: “We are working with government to get the energy bill relief payments to our customers as soon as possible”.

Social services groups have urged the matter to be fast-tracked, with national director of energy policy at the St Vincent de Paul Society, Gavin Dufty, warning it could further erode trust in the energy sector.

“It appears to be bureaucratic red tape getting in the way of people getting cost of living relief in a cost of living crisis,” he said.

Origin Energy says there was a “delay in rebate payments to NSW, Victorian and South Australian customers”.

Customers have been assured they will still get their payments of $300 over the financial year regardless of when the first payment is issued.

In Queensland, credits have already been applied to bills, along with $1000 state sweeteners dished out in the lead-up to its October 26 election.

Victorian opposition energy spokesman David Davis said that Energy Minister Lily D’Ambrosio needed to “process required paperwork and ensure money flows this week”.

“Households are being overwhelmed by surging energy costs and they deserve immediate access to promised relief – although it will barely touch the sides,” he said.

A spokeswoman for the Allan government said all households with an electricity account will automatically receive the full $300 bill rebate “credited in instalments over the 2024-25 financial year”.