Reference no: EM133232274
Please analyse one of the Victorian Government initiatives outlined and communicate your findings as if you were writing an email to your manager. In your response, use economic principles to assess up to four impacts, such as the costs or benefits associated with the initiative. You should consider both direct and indirect impacts of the initiative.
You are encouraged to focus your analysis on the specific initiative, rather than government interventions more generally. Include a brief summary of your view of the initiative and whether you think it is worthwhile. You should only draw from the material provided.
Initiative - $250 Power Saving Bonus
In the 2022-23 Victorian Budget, a $250 Power Saving Bonus was announced to assist Victorians with the increase in cost of living.
The Bonus builds on an existing power saving bonus program, previously available to eligible concession card holders. Households can claim the $250 payment by comparing their current energy bills to see if they can get a better deal on the Victorian Energy Compare website.
The Power Saving Bonus is available to all Victorian households from 1 July for 12 months, and there are no limits or caps on the number of households that can receive the once-off payment.
User data shows that seven out of every 10 users can save money by switching energy offers, with typical annual savings of $330 on energy bills in the first year of switching alone. Combined with the Power Saving Bonus, that means Victorian households could save up to $580 a year.
On 22 July the Victorian Government announced an additional $205 million to meet the popularity of the program, on top of the initial $250 million funding.