Australian Gas Networks applies for $28 increase on household prices

Households should pay at least an extra $28 a year and businesses $362 a year for gas from July 1, says distribution company Australian Gas Networks.

Households will pay at least an extra $28 a year and businesses $362 a year for gas, under a proposal by the gas distributor.

The increases of 5 per cent and 7 per cent respectively have been requested by Australian Gas Networks from July 1.

The increase would only apply to the distribution component of the bill with any changes to wholesale and retail costs in addition to that increase.

The proposed increase has been put to the Australian Energy Regulator.

Energy Minister Dan van Holst Pellekaan

Energy Minister Dan van Holst Pellekaan “urged the Australian Energy Regulator to keep the cost of gas as low as possible” when making its assessment.

Distribution accounts for about 56 per cent of an annual residential bill of $1033.

Businesses paid an average $5816 a year in 2017-18, according to the Essential Services Commission of SA.

The application was “non-controversial”, Australian Gas Networks chief operating officer Andrew Staniford said because it followed a framework agreed in 2016 by the Australian Energy Regulator.

That saw distribution prices fall an average $145 — or 23 per cent — that year with a price path of increases at inflation plus about 3 per cent annually to 2020-21.

SA Council for Social Service chief executive Ross Womersley said the increase was not a surprise but would still hit low-income households.

“These increases are one of the reasons the energy concession should be a perecentage of a bill, not a fixed dollar amount,” he said.

The regulator is due to decide on the increase next month.