Boost to bill relief to blunt rising living costs

Penny Sharpe hopes power bill relief means more customers for cafe owner Mohsen Jahangiri. (Nikki Short/AAP PHOTOS)

When the coffee machine whirrs in Mohsen Jahangiri's corner cafe, the rising cost of electricity is in the back of his mind.

What was a $900 power bill nine months ago is now $1300.

That's meant the Sydney cafe owner has had to trim back staffing and resort to only switching on energy-intense equipment such as toasters when needed.

"We are really hopeful of always having a fast service but unfortunately, we only use it on weekends," Mr Jahangiri said on Wednesday.

But the burden will be eased this financial year with the government automatically paying $650 of his and 320,000 other small businesses' energy bills.

Some 1.6 million households will also get quarterly bill relief of $125.

Those who don't see the rebate on their bills by July 31 are being urged to talk to their retailer or ServiceNSW to ensure they're part of the $485 million package.

The NSW government on Wednesday also lifted temporary hardship assistance to $2000 per financial year from $1600 through the Energy Accounts Payment Assistance scheme.

The program helps about 50,000 households and businesses experiencing hardships - such as loss of income, unexpected medical costs and natural disasters - avoid being disconnected by their energy retailer.

From August, those eligible can apply for two $500 vouchers for gas bills and two $500 vouchers for electricity bills over the next year.

NSW Council of Social Service chief executive Joanna Quilty said the change would make a huge difference to households in dire circumstances.

"But there’s more to do to streamline and speed up eligibility and application processes and to make sure people know this assistance is available," she told AAP.

Energy Minister Penny Sharpe shared the frustration that only about half of the 2.35 million people eligible for energy bill relief applied for it in 2020/21.

"It's a real worry," she said.

"Sometimes, it is too complicated. There's a real information gap about people not knowing or ruling themselves out as not being eligible."

Opposition health spokesman Matt Kean noted the broader relief applied to only those on federal income support and not to all of the 3.4 million households in NSW.

The coalition had expected about two in three households to apply for its planned one-off $250 scheme if it had been returned to government in March.

"The millions of families who miss out on the $250 bill relief should write to their local Labor MP and ask them where their $250 is," Mr Kean said.

He also attacked Premier Chris Minns for going on a family holiday when health workers were threatening industrial action next week as part of a bid for more pay.

The Health Services Union wants a six per cent rise or a flat increase of $3500 per worker for this financial year but the government says four per cent is all that's affordable.

Brushing off examples of coalition leaders taking leave, Mr Kean said it was incumbent on a premier who had promised "huge" increases to immediately step in.

"Leaders don't go on holidays during a crisis," he said.

But he was unaware his leader, Mark Speakman, was also on leave until the middle of next week.

NSW Parliament is on winter break, with the next sitting day scheduled for August 1.

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