Carbon tax repeal halts gas price hike

Prices were projected to rise, on average, between $155 and $225 a year for regulated users. Now price rises are expected to increase by $81 to $133 depending on where you live and how much gas you use.

Regulated tariff users were told in June that average gas bills would rise by 17.8pc in 2014/15 by the Independent Pricing and Regulatory Tribunal (IPART).

However, regulated gas retailers AGL and Origin Energy submitted revised pricing proposals in the wake of the federal government’s repeal of the carbon tax which IPART said will reduce the price increase.

Regulated users will now pay on average 11.2pc more for their gas.

IPART said the revised pricing regime is backdated to July 2014 and customers will receive a credit on their bill for overpayment if required.

Customers on a market tariff “may expect similar action from their gas retailers”, IPART said.

Despite the recent reduction, overall gas price hikes are “significant”, according to IPART chairman Dr Peter Boxall.

He said impending gas exports from the Gladstone liquefied natural gas terminal in Gladstone, Queensland, was behind the price spike.

“The ability to export LNG is driving a fundamental change in eastern Australia’s wholesale gas market,” Dr Boxall said.

“NSW is becoming part of a single global market for commodity gas, and that means that the costs retailers face in supplying gas to their customers is rising rapidly.”