Overpaying for power? Find out why many concession cardholders spend more than they should!
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Managing expenses becomes more crucial in the golden years of retirement.
Every penny saved can make a significant difference, and one area where savings can often be overlooked is the power bill.
It's a common expense that can quietly chip away at your budget, but did you know that you might be paying more for your electricity than necessary?
Recent findings have revealed a startling fact: six in ten Australians with concession cards are paying more for their power than they should.
This means that millions of Australians, many of whom are seniors, could be missing out on substantial discounts on their power bills.
The issue at hand is that while concessions and discounts are available, they are not automatically applied.
Instead, eligible individuals are required to ask their power company to apply these discounts.
Unfortunately, this has led to a situation where many people either don't realise they are eligible or simply forget to request these discounts, especially when changing retailers.
Those eligible for these discounts include recipients of the age pension, Jobseeker, Youth Allowance, or disability support payments.
With an estimated $108 million worth of energy rebates going unclaimed each year, it's clear that customers are paying more than necessary for power.
Research conducted by the Melbourne Institute and Roy Morgan found that as many as two-thirds of concession card holders were unaware of the discounts they were eligible for.
This lack of awareness is a significant barrier to accessing much-needed financial relief.
Recognising this issue, the federal government is proposing to shift the responsibility from customers to energy retailers.
Energy Minister Chris Bowen has highlighted that 'vulnerable customers aren't always best placed to navigate the energy system.'
The proposed changes would require energy retailers to take a proactive approach to helping customers save.
They must ensure each customer receives the best possible bill through the right plans and concession discounts.
The process of implementing these changes, however, is not without its complexities.
Energy retailers are currently obligated to inform new customers about potential discounts at the time of sign-up.
The proposed changes take this a step further, requiring retailers to proactively inquire about customers' eligibility for discounts and to reach out to existing customers who might be missing out.
The Australian Energy Regulator has suggested that the ultimate goal is to automatically apply all rebates and concessions to bills, ensuring that no one misses out.
This would necessitate a more intricate system where energy retailers collaborate with Services Australia to determine eligibility and apply discounts accordingly.
Cassandra Goldie from the Australian Council of Social Services has praised the proposed changes, emphasising the importance of ensuring those in need receive the financial support they deserve.
‘ACOSS and other consumer advocates have long called for these reforms, and these changes can't come soon enough.’ she said.
The Australian Energy Market Commission is currently working through the potential changes, with a draft decision expected by May.
If these changes go through, it could mean more money in your pocket and less worry about the rising living costs.
So, dear members, check if you're eligible for any power bill concessions and contact your energy retailer to ensure you're not missing out on discounts.
Keep an eye on this space, as we'll be sure to update you on any developments regarding these important changes.
In other news, Australians nationwide feel the strain of rising living costs, but various rebates and relief measures will be available in different states starting in August.
Eligible customers from different states will see the federal government's $300 energy bill rebate applied to their next billing cycle, while Queenslanders will receive additional state rebates. You can read more about it here.
Have you had any experiences with power bill concessions? Were you aware of the discounts available to you? Share your stories in the comments below, and let's help each other stay informed and save money where possible.
Every penny saved can make a significant difference, and one area where savings can often be overlooked is the power bill.
It's a common expense that can quietly chip away at your budget, but did you know that you might be paying more for your electricity than necessary?
Recent findings have revealed a startling fact: six in ten Australians with concession cards are paying more for their power than they should.
This means that millions of Australians, many of whom are seniors, could be missing out on substantial discounts on their power bills.
Many concession card holders pay more for electricity due to unused discounts. Credit: Daniele Mezzadri / iStock
The issue at hand is that while concessions and discounts are available, they are not automatically applied.
Instead, eligible individuals are required to ask their power company to apply these discounts.
Unfortunately, this has led to a situation where many people either don't realise they are eligible or simply forget to request these discounts, especially when changing retailers.
Those eligible for these discounts include recipients of the age pension, Jobseeker, Youth Allowance, or disability support payments.
With an estimated $108 million worth of energy rebates going unclaimed each year, it's clear that customers are paying more than necessary for power.
Research conducted by the Melbourne Institute and Roy Morgan found that as many as two-thirds of concession card holders were unaware of the discounts they were eligible for.
This lack of awareness is a significant barrier to accessing much-needed financial relief.
Recognising this issue, the federal government is proposing to shift the responsibility from customers to energy retailers.
Energy Minister Chris Bowen has highlighted that 'vulnerable customers aren't always best placed to navigate the energy system.'
The proposed changes would require energy retailers to take a proactive approach to helping customers save.
They must ensure each customer receives the best possible bill through the right plans and concession discounts.
The process of implementing these changes, however, is not without its complexities.
Energy retailers are currently obligated to inform new customers about potential discounts at the time of sign-up.
The proposed changes take this a step further, requiring retailers to proactively inquire about customers' eligibility for discounts and to reach out to existing customers who might be missing out.
The Australian Energy Regulator has suggested that the ultimate goal is to automatically apply all rebates and concessions to bills, ensuring that no one misses out.
This would necessitate a more intricate system where energy retailers collaborate with Services Australia to determine eligibility and apply discounts accordingly.
Cassandra Goldie from the Australian Council of Social Services has praised the proposed changes, emphasising the importance of ensuring those in need receive the financial support they deserve.
‘ACOSS and other consumer advocates have long called for these reforms, and these changes can't come soon enough.’ she said.
The Australian Energy Market Commission is currently working through the potential changes, with a draft decision expected by May.
If these changes go through, it could mean more money in your pocket and less worry about the rising living costs.
So, dear members, check if you're eligible for any power bill concessions and contact your energy retailer to ensure you're not missing out on discounts.
Keep an eye on this space, as we'll be sure to update you on any developments regarding these important changes.
In other news, Australians nationwide feel the strain of rising living costs, but various rebates and relief measures will be available in different states starting in August.
Eligible customers from different states will see the federal government's $300 energy bill rebate applied to their next billing cycle, while Queenslanders will receive additional state rebates. You can read more about it here.
Have you had any experiences with power bill concessions? Were you aware of the discounts available to you? Share your stories in the comments below, and let's help each other stay informed and save money where possible.
