Problem
Discuss 4 economic or public policy impacts that can occur by approval of the following initiative below. This can be costs or benefits associated with approval of the initiative. Do not refer to any additional material, all the information that you need to develop your response is the passage!
The Initiative - $250 Power Saving Bonus
In the 2022-23 NSW Budget, a $250 Power Saving Bonus was announced to assist NSW residents 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 NSW Energy Compare website. The Power Saving Bonus is available to all NSW 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 NSW households could save up to $580 a year. On 22 July the NSW Government announced an additional $205 million to meet the popularity of the program, on top of the initial $250 million funding.