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NewsWhy your Gas Bill could rise by hundreds of dollars a year (and what you can do about it)
Why your Gas Bill could rise by hundreds of dollars a year (and what you can do about it)

Why your Gas Bill could rise by hundreds of dollars a year (and what you can do about it)

Tags: Cost of Living Energy
Last updated by Jess Lindell on

gas-stove-radiation-400x400When 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?

Originally posted on .

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Adrienne
Adrienne from QLD commented:

I thought we already were paying for this. In Queensland LPG deliveries have gone up in price by 246% in the last 10 years. When my gas hot water system finally meets its maker I am going electric. 

Beverley
Beverley from VIC commented:

I switched to simply energy earlier this year as I could get 15% discount on my gas account and then I received the biggest gas bill I have ever had was it really worth switching from AGL? 

Robyn
Robyn from NSW replied to Beverley:

I agree, Beverley. I compared prices for all gas companies in NSW, and their rates were EXACTLY the same for my postcode area.! I decided to stick with AGL. Better the devil you know. They are bleeding us dry. 

Paul
Paul from NSW commented:

It's unbelievable that our Governments both State & Federal let this kind of thing happen. By that I mean, how can they licence the extraction of these resources to go ahead, without any guarantee from these companies, to set aside a percentage of the gas produced for Australian consumption, at fair prices. It's a bloody disgrace! It's time now, to try and stop these ridiculous price hikes, before it to late!!! 

Stan
Stan from NSW commented:

Turn the bloody thjing off 

keith
keith from NSW commented:

gas producers in australia ( probably foreign owned ) sell gas to china for 7 cents a litre ( some people say 5 cents)... a 9kg bottle of LPG costs australians $20 ,the same gas forcars 80 cents a litre ,mostly tax of course..ever since GST was introduced in australia successive governments have totally abandoned all forms of price control ,and encourage foreign companies that benefit from government public sell offs to increase prices ,to increase GST reciepts, australians should be getting our own gas for 7 cents a litre , not the chinese 

raymond
raymond from NSW commented:

Like the rest of the world we should be only selling our surplus gas; Ray. 

Kristina
Kristina from NSW commented:

Does the fifty up club have good deals for gas? 

Someone
Someone from NSW commented:

Why are we promoting solar energy which is renewable? 

Owen
Owen from NSW commented:

We should be lobbying for preserving internal energy usage, Gas etc. at production rate & only sell excess to world markets. After all this is what USA, Canada, & oil producing countries do. I think what we do in Australia is absolutely stupid. This arrangement makes Australia the unlucky country & totally loses it's energy advantage & kills local manufacturing & employment. Owen 

Brian
Brian from NSW replied to Owen:

Why do we bother, nothing is going to change....yes we have been taken for a ride for years, we are hit at the till with everything we buy in Australia, we must be the laughing stock of the rest of the world for standing for it for so long. I was in a dress shop yesterday, and clothing items were reduced from over $100 to $10 !!! One lady commented "how can they afford to do it" a response came, " because this is all they are actually worth in the first place, and a collected " yes " came from those in ear shot.... And this just about describes everything we buy down under.... 

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