Gas price hikes to hit hard

Victorian homes to be slugged hundreds more

VICTORIAN households will be slugged hundreds more for natural gas this year, as the state’s largest energy suppliers hike prices.

Wholesale gas prices in Victoria increased from $5.71 a gigajoule last financial year to more than $10 this year to date – an increase of 77 per cent – according to the Australian Energy Regulator.

The increase has been passed on to customers by the state’s largest gas suppliers including AGL, Origin and Simply Energy.

Origin Energy confirmed its standing rate plan increased by 16 per cent on January 1, while its variable market plan would follow suit from February 1, with customers set to pay an extra $242 on average this year.

Origin Executive general manager Jon Briskin said network costs were to blame for the spike.

“The increase in natural gas prices for variable rate plans is primarily due to a significant increase in what it costs us to purchase and supply this gas to our customers,” Mr Briskin said.

“Increasing prices is not a decision we take lightly, which is why we absorbed some increases in network costs in Victoria over the past few years to keep gas prices flat for our customers throughout 2019 and 2020.”

Origin also flagged its price increase – which was higher than its competitors – was coming off a lower base than other suppliers and prices would be frozen at 2021 levels for customers on its hardship program.

Australia’s largest energy retailer, AGL, confirmed its gas prices for Victorian customers on standing offers would increase by 5.5 per cent on average, which would see a family of four pay an extra $122 on its annual gas bill.

“A range of external factors, including commodity price, network changes and market conditions, can influence changes in energy prices,” an AGL spokeswoman said.

Simply Energy said its Victorian gas charges were expected to increase by an average of 10.9 per cent, which would equate to an extra $155 a year on its basic plan.

Energy Australia did not respond to questions about its gas price increase.