The cash is available to borough residents who currently pay their council tax by direct debit, with more than 30,000 expected to receive the money during May.
However, those who are yet to sign up to pay their bills by direct debit will have to wait for separate arrangements to be confirmed.
Concerns have already been raised in the borough that as many as 30,000 people who have not already registered for automatic payments could miss out of the refund.
But bosses have insisted information on how to claim the money will be sent to eligible families, promising “everyone will get the money that they are entitled to”.
A spokesperson for the local authority said: “We have now started the process of paying Direct Debit customers their £150 council tax energy rebate.
"Over 30,000 payments have been issued and we expect them to be in the bank accounts from next week.
“Households in Council Tax bands A to D will receive the £150 rebate. Second homes or empty properties will not benefit.
“We’re working through thousands of households so payment will be ongoing for a number of weeks and advise customers to check their bank accounts.
"We expect all customers who have paid their council tax via direct debit on or before May 1, 2022, to be paid by middle of May.
“Non direct debit customers will need to apply for their rebate and we will be updating residents on how and when they can apply next month. Information will be available at www.southtyneside.gov.uk/counciltax”
What is the Council Tax Energy Rebate?
A one-off payment of £150 to households living in council tax bands A – D, expected to be made throughout April and which will not need to be paid back.
Who is eligible for a rebate?
Households in bands A-D and which they live in as their main home and were liable to pay council tax on as of April 1.
This includes those receiving Local Council Tax Support, even if their council tax bill for the year is less than £150, and some households which are already exempt from paying council tax.
But residents who live in a HMO (House of Multiple Occupation) are not eligible to receive the Council Tax Energy Rebate.
How do I know if I am in an eligible property?
More details about the scheme in South Tyneside can be found here.
How do I get my council tax rebate?
If you live in an eligible property and you pay your council tax by direct debit, your local council will make the payment directly to your bank account automatically, starting from April 2022.
The Independent Office for Budget Responsibility (OBR) has predicted take up of the offer could be just 80% among households which per do not pay via direct debut.
If you live in an eligible property and you do not currently pay your council tax by direct debit, households in South Tyneside can sign up here.
How long do I have to make sure i can claim the money on offer?
Claims for the rebate can be processed up until September 30.