Why your Gas Bill could rise by hundreds of dollars a year (and what you can do about it)
When it comes to your energy bills, it looks like Gas is the new Electricity.
Average gas bills are expected to increase more than $300 a year in Melbourne and over $100 a year in Sydney and Adelaide, according to the latest Grattan Institute report released this week.
The increases are due to Queensland’s LNG exports starting at the beginning of next year. From now on, residential customers in Australia will have to compete with international Gas prices. Which means paying more.
Average gas bills have already increased by 36 per cent over the last five years and these increases could hit larger households with a yearly bill increase of up to $435. Ouch!
As the largest consumers of natural gas, Melbournians will be hardest hit. In particular households that use gas for cooking, hot water and heating will bear the brunt.
For low gas users, such as households with only gas cooktops or using a small-capacity gas hot water system, the effect of the price rise will be minimal, at less than $50 a year.
So what can you do to avoid bill shock?
Early this year, the NSW Energy Minister urged households to embrace coal seam gas and shop around if they want to avoid a massive spike in gas prices.
While the market isn’t nearly as competitive compared to electricity (there are only 6 providers in Victoria, 4 in NSW, and 2 in Queensland), households can often save by shopping around and switching.
In fact, households in NSW can save up to $200 and in Victoria up to $400 by switching gas offers, according to research by St Vincent de Paul in NSW and VIC.
If it can save you money, consider having your gas and electricity with different providers.
The Grattan report warns the increases will mean tough decisions for many households and businesses.
Some households might choose to disconnect entirely from the gas network or switch some appliances, such as hot water. But for households that are heavily reliant on gas this will be less effective as gas generally becomes cheaper as you use more.
Of course it’s always worth looking at ways you can use less energy around the house, from energy efficient appliances to reducing hot water.
What are your best energy saving tips to share with other FiftyUp Club members?
