Gas fight heats up across district

Australian energy company Origin is exploring ways of entering the natural-gas retail market in Horsham in a move that might help end a long-running debate about a monopoly in the sector.

Origin senior media manager Stuart Osbourne confirmed his company was looking into the potential of entering the market in the region.

“We’re not really in a position of confirming plans, but it is certainly something we’re looking at and hope to do,” he said.

“We don’t have any arrangement with a private pipeline contractor but we are hoping to overcome any obstacles if we want to pursue this. It’s a case of watch this space.

“We’re hearing that people in the area want to go with us with gas and it appears to be an anomaly that this part of Victoria has only one piped-gas retailer.”

Energy Australia is the sole pipedgas retailer in Horsham despite the sector supposedly open to competition.

Member for Lowan Emma Kealy has continually raised concerns about the circumstance, fearing Horsham people have been left vulnerable to a monopolised essential service.

She has written a detailed letter to Energy, Environment and Climate Change Minister Lily D’ambrosio outlining her concerns in detail and again calling for government action. She said in her letter, submitted on February 8, that Horsham residents had experienced a significant increase in retail gas prices since expiration of The Wimmera and Colac Gas Supply Tariff Order 1998.

She added that many worried constituents had contacted her about the situation. In her letter to Ms D’AMbrosio she wrote –

“As you are aware, Energy Australia currently owns 100 percent of the transportation capacity of the pipeline supply gas to western Victoria, making them the sole gas retailer in the region.

“The Wimmera and Colac Gas Supply Tariff Order 1998 constrained Energy Australia’s gas tariff increases to no more than the Consumer Price Index.

“Since expiration of the Order in 2013, gas retail prices in Horsham have risen dramatically with a cumulative increase of about 85 percent.

“The increase in 2018 alone was 15.3 percent, followed by a further increase of almost 10 percent in January this year.”

Ms Kealy requested in the letter that the government immediately act to establish regulatory framework to protect Horsham residents from the potential risk of future price gouging.

She also outlined major concerns in her letter about the marketing practices of some gas retailers she believed were exploiting the circumstances.

“I am deeply concerned that Horsham residents are missing out on discount offers and are being charged excessive gas rates due to a lack of competition or a capped increase agreement such as that previously provided by the Wimmera and Colac Gas Supply Tariff Order 1998,” she wrote.

“I am also extremely concerned by the marketing practices that appear to exploit the gas supply and retail monopoly to Horsham.

“Your government has previously made commitments to ensure the interests of consumers in the Wimmera are protected in relation to gas price increases.

“I am seeking your advice regarding when this commitment will be honoured.”