Excess electricity concession

Find out what you can do when your annual electricity costs are more than you expected.

What does this concession apply to?

Domestic mains electricity usage and service costs above $2,725 for the annual period starting 1 December 2016. This amount is reviewed each year.

Who can apply for the concession?

An electricity account holder whose annual electricity costs are above $2,725 and who holds one of the following eligible cards:

  • Pensioner Concession Card
  • Health Care Card
  • Veterans’ Affairs Gold Card.

How much is the concession?

17.5 per cent of electricity usage and service costs.

The concession is calculated after retailer discounts and solar credits have been deducted.

How do I apply for the concession?

Your electricity retailer will check if you need to apply for the Excess electricity concession and send you an application form.

You must sign a declaration confirming that the electricity used at your address is for domestic purposes, that no commercial business is being conducted at the address, and that the electricity is not being used for an illegal purpose.

After you have signed and dated the form, send it to this department at the address listed on the form.

We will check your eligibility and advise your retailer. Your retailer will calculate the Excess electricity concession and apply the concession to your next bill.

My bills are high due to medical needs – do I need to apply?

If you receive the Life support concession or the Medical cooling concession you do not need to complete an application form to receive the Excess electricity concession. Your electricity retailer will apply the concession to your account.

More information

Phone your electricity retailer or the Concessions information line.

  • I normally receive the Annual Electricity Concession. Is this an additional concession?

    No.

    The Annual Electricity Concession is only given on electricity charges up to an annual limit of $2,725.

    The Excess Electricity Concession is only given on electricity charges over the annual limit of $2,725. Only around 5 per cent of concession households are expected to reach this limit.

    You need to complete an application form for this concession.

  • I have been sent an application form for the Excess Electricity Concession – why do I have to apply for this concession?

    As your electricity charges have reached, or are expected to reach, the annual limit of $2,725, your electricity retailer has sent you an application form for the Excess Electricity Concession.

    You need to apply for this concession to verify that the electricity your household is using is for home-related purposes. This is to make sure that concessions are targeted to those households most in need of assistance

  • I don’t believe my electricity costs are that high – what should I do?

    Your electricity retailer sends out application forms to customers whose electricity charges have reached, or are about to reach, the annual limit of $2,725.

    If you do not believe your usage has reached this limit, please contact your retailer.

  • How do I complete the Excess Electricity Concession application?

    Your details have already been filled in by your retailer, so the form only needs to be signed by the person who is named as the account holder, and by a witness.

    If you are the named account holder, you need to sign the form, write your name, and write the date that you are signing. Your witness needs to do the same thing.

    If any of your details on the form are incorrect, please contact your retailer and ask them to update your information and send you an updated form. Please do not amend the form

  • Where do I write the date?

    Underneath your name, write the date in the boxes marked DD MM YY. This stands for day, month, year, for example, 2 March 2017 is 02 03 17.

  • Who can witness my application?

    The witness can be anyone over the age of 18, including a family member, partner or housemate.

    The witness does not need to be a Justice of the Peace.

  • The application form is in my partner’s name but we are both account holders – can I sign?

    No. The form needs to be signed by the named account holder. You can sign as the witness.

    If the named person no longer lives at the address, contact your electricity retailer to update the account details, and ask for an updated form.

  • I am no longer with the retailer named on the form – do I still need to complete the form?

    Yes. The form relates to the electricity used while you were a customer of the named retailer.

    Do not change the retailer name on the form.

    If you have not done so already, please contact your new retailer and give them your concession details.

  • The concession period listed on the form has ended – do I still need to complete the form?

    Yes. The form relates to the electricity used during the period on the form.

    Do not change the dates on the form.

    You may have missed out on receiving some of your concessions during the period on the form. When your form is completed and approved, your account will be credited for these concessions.

  • Where do I send my form?

    Send your form to the address on the bottom of the form:

    Concessions Unit - Excess Energy Concession

    Department of Health and Human Services

    PO BOX 38

    Laverton Vic 3028

    You can also scan and email your form to Excess Electricity Concession.

  • I have sent in my application form – what happens next?

    Applications take up to four weeks to be processed.

    The department will write to you once your form has been approved, or if there are any problems with your form.

    Once approved, the department will tell your electricity retailer that you are approved to receive the concession, and any missed concessions will be credited to your account.

  • How is the concession calculated?

    The concession is calculated in the same manner as the Annual Electricity Concession.

    The concession is calculated as follows:

    A = [17.5% x (B – C)] – (D x 0.0823)

    Where:

    • A is the amount of the concession

    • B is the electricity charge

    • C is the contractor discounts and solar credits

    • D is the number of days in the billing period.

    Contractor discounts means the sum (excluding GST) of regular discounts, rebates, feed-in tariffs and other benefits offered or applied by the contractor directly in relation to the electricity charges.

    Calculation example

    Billing period 1 August – 27 October (88 days)

    Electricity charge (B) $560.00

    Contractor discounts (C) $24.25 cr

    [17.5% x (B($560.00) – C($24.25))] - (D(88) x 0.0823) = $86.51

    Concession amount is $86.51.