All gas, electricity and water companies in Victoria are legally obliged to assist you if you are having difficulty paying your bills due to financial hardship.
In general terms you are considered to be in financial hardship if you want to pay your bills but have insufficient money to do so.
As well as being eligible for your utility company’s hardship program, you may also be entitled to concession rates, a utility grant or special services to help you manage your utility costs, particularly if you receive Centrelink payments.
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Contact your utility company
The first thing to do when you’re having difficulty paying your utility bills is to contact your utility company, explain your situation and ask for assistance from their hardship department. You may make this contact by phone or in a letter.
The 'Further Information' section on the right side menu of the page features a step-by-step guide and a request for a utilities hardship sample letter; both are available to assist you in asking your utility company for hardship consideration.
Victorian law requires utility companies to provide flexible payment options for people in your circumstances. The utility companies must also provide advice about the concessions, special services and grants available for people in unforeseen changed circumstances. Each company operates its own hardship program.
As long as you have contacted your supplier and kept them informed of your limited finances due to your circumstances – and paid something off your bill if possible – your utility company will usually offer you affordable payment arrangements and not commence debt recovery action or disconnect your service.
While gas and electricity companies can disconnect your supply for non-payment of your bills, the flow of water to your property cannot be disconnected (but can be restricted) if you don’t pay your water bills.
You may find that a simple change to paying weekly or fortnightly makes your bill easier to manage than having to pay a large bill every two or three months.
Keep a written record of all phone calls and copies of all correspondence and other documents concerning the bills you cannot afford to pay.
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Negotiating a utility payment plan
Your utility provider is required to offer you flexible payment arrangements that will allow you to pay your outstanding bills in instalments that are affordable in your current circumstances.
Prior to speaking to your utility company about a payment plan, work out how much you can realistically afford to pay. You can use MoneyHelp’s Budget tool or contact a financial counsellor for help with this.
Keep some money on hand for unexpected expenses, such as car repairs or medical expenses. Don’t over-extend yourself with payments, and never agree to pay more than you can afford. Perhaps initially, offer to pay less than you can afford so you’ll have room to move if your utility company wants more.
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If your utility company doesn’t agree to a payment plan
If your gas, electricity or water company does not offer you an affordable payment plan, you can contact the Energy and Water Ombudsman’s (EWOV) office, and lodge a complaint.
Utility companies cannot refuse to connect you for gas, electricity or water supply because you have a poor credit history. However, they may require you to pay a refundable advance as security in some circumstances in case you don’t pay.
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What is a Utility Relief Grant?
The Victorian Government operates a Utility Relief Grant scheme which provides financial assistance to Victorian low-income households experiencing short-term financial hardship who:
- are in financial hardship due to an unforeseen event in the past six months; and
- are unable to pay for a mains gas, electricity, or water account, or an outstanding LP gas or carted water account at their current address; and
- are at risk of disconnection, restriction of supply or non-supply of gas bottles or carted water.
A Utility Relief Grant provides either full or partial payment of an outstanding gas, electricity or water bill at your current address. They are not available to pay old bills at a former address. The maximum grant available is equivalent to the cost of six month’s usage.
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Who is eligible for a Utility Relief Grant?
You can apply for a Utility Relief Grant if you are a Concession Card or Health Care Card holder and can demonstrate that unexpected hardship (like a decrease in income) has left you with insufficient money to pay your utility bills without assistance, and at risk of disconnection or non-supply.
If you do not have a Concession Card you may still be eligible for a Utility Relief Grant providing you are registered with your utility company's hardship program and your household income is insufficient to allow you to pay your utility bills under a negotiated payment plan arrangement. Seek help from a financial counsellor.
Applications must meet one of the following criteria to be successful:
- a significant increase in usage
- a recent decrease in household income
- high unexpected expenses on essential items
- the cost of shelter is more than 30% of household income
- the cost of utility usage is more than 10% of household income
Find out more about the Utility Relief Grant Scheme in Victoria.
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Utility Relief Grant Applications
Application forms for the Utility Relief Grant Scheme are available from gas, electricity and water companies, and LP Gas and carted water suppliers.
You can submit a grant application for a single utility bill, or you may ask for a grant for combined gas, electricity and water bills.
Your application should provide details about the circumstances that have led to your inability to pay your outstanding utility bills.
You can apply for a grant once every two years, but only for payment of outstanding bills at your current address.
If you advise your utility company you have applied for a Utility Relief Grant, they should not take action against you or disconnect you while the application is being processed.
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If you’re receiving Centrelink payments
If you are receiving Centrelink payments, you may be entitled to concession rates or grants to make your bills more affordable. These include:
- concession rates on your gas, electricity or water bills if your current details are registered with your utility company; and
- new rebate schemes for water and energy efficient appliances for low income households will be released by the Department of Sustainability and Environment from 1 July 2011. The Home Wise and Water Wise programs ceased on 3rd May, 2011.
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Other programs to reduce water use
The Victorian Government conducts a WaterSmart Program to help Victorian householders reduce water consumption and water bills. The program provides water-efficient showerheads and a range of rebates on water saving products.
For instance, a family of four can save over 28,000 litres of water and around $100 in water and energy costs each year with a water-efficient showerhead compared to what they would use and pay with an older style showerhead. Most people find they can change over their showerhead themselves in just a few minutes.
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Contracts signed through a door-to-door sale
If a door-to-door representative convinced you to sign a gas or electricity contract in your home you may be able to cancel the contract, either:
- during the 10-day “cooling off” period that applies for all contracts entered in your home, or
- if you have been misled by a high-pressure sales pitch that is not true.
The representative may have claimed their service will save you money. However, any discount claim by the new service provider may be offset if you are required to pay cancellation fees to your old service provider.
If you can’t afford a contract you signed in your home for gas or electricity supply, and the service provider refuses to cancel the service, you can contact the Energy and Water Ombudsman Victoria (EWOV), seek legal advice or contact a financial counsellor.