The McGowan Labor Government is giving every Western Australian household a one-off $600 credit on their residential electricity bill as part of the 2020-21 State Budget.
For the first time in history, effective as of today around 1.1 million Synergy and Horizon Power customers will receive a one off $600 credit, which is expected to provide the average WA household around four months of relief from having to pay their electricity accounts.
The credit has been funded from the recent Bell Group settlement for losses incurred in the Bell Group collapse in the early 1990s.
The $600 electricity credit will see the McGowan Government deliver $644 million back into the pockets of Western Australian households, which will provide a significant boost to our local economy.
$10 million of the remaining funds from the Bell Group settlement have been retained by the Insurance Commission of WA for legal fees, insurance and other associated costs with bringing the long-running legal dispute to an end.
With the $600 credit, the average Western Australian household can expect a total saving of $663.52, or a one-off reduction of 10.4 per cent, on their household fees and charges this year.
It builds on other household support and relief measures already announced as part of the McGowan Government's more than $5.5 billion WA Recovery Plan, including the $610 provided to those customers who qualify for the Energy Assistance Payment.
The WA Recovery Plan also included a freeze on increases to electricity and water tariffs, motor vehicle related charges and public transport fares, and reduced Emergency Services Levy, wastewater and drainage charge fees by passing on the benefit of lower gross rental values.
Today's announcement also complements the one-off $2,500 energy credit provided to small businesses and charities that consume less than 50 megawatt hours per annum, as part of the WA Recovery Plan.
As stated by Premier Mark McGowan:
"It's only right that the Bell Group settlement funds go straight back to Western Australians.
"It's even more important now, as we continue on our State's recovery from COVID-19.
"Our strong and stable budget management has given us the capacity to utilise these funds in the best way possible, and at the right time for our economy.
"Providing relief and support to all Western Australian households is an important element of our jobs and recovery plan.
"The credit will be rolled out by the end of the year, ensuring families have that extra capacity to spend and support our economy in the lead up to Christmas.
"While some portion of this will be saved by households, the majority is expected to be spent in our local economy, meaning local businesses that have been particularly impacted by COVID-19, including the retail and hospitality sectors, will benefit the most.
"By generating additional expenditure in the local economy, we're supporting local jobs and we can make sure we recover from the pandemic, stronger than ever."
As stated by Treasurer Ben Wyatt:
"As Treasurer, I am pleased to have played a role in helping bring the long-running Bell Group saga to an end and returning these funds to WA taxpayers.
"Western Australians have waited almost 30 years to see an end to this dispute.
"Using these funds to benefit all Western Australians, particularly at a time when we are dealing with the impacts of COVID-19, is most appropriate.
"The $600 credit is expected to provide a significant boost to the economy and will support jobs, providing further impetus to the recovery already underway in Western Australia.
"This is the first time household fees and charges have decreased in 15 years."
As stated by Energy Minister Bill Johnston:
"This Government continues to introduce initiatives that improve energy affordability in WA.
"The WA Household Electricity Credit is about giving WA households relief and support when they need it most, and I'm pleased as a Government we've been able to do this.
"We have already frozen fees and charges as part of the WA Recovery Plan, which has benefited households as we juggle the pandemic and now this additional credit will go even further to helping WA households."
