Victorians’ gas bills set to rise from August 1

The cost of living crisis is set to get worse for many Victorians with new bill pain from next month.

Victorian families and businesses will have to fork out hundreds of dollars more for their gas bills following rate hikes next month.

From August 1, major energy companies are advising households of price rises of up to 12 per cent, or more than $200 annually.

The soaring prices are another blow for people struggling amid the cost of living crisis, with small businesses also facing increases of almost $700 a year on average.

Energy experts warn the hip-pocket pain will continue due to looming gas shortfalls, high production and network costs.

Households are being warned of price rises of up to 12 per cent on their gas bills.

Victoria has the highest gas usage in the country with more than two million people using gas in their homes and businesses.

New price notices, obtained by the Herald Sun, show some Globird customers on market offers are set to see their gas bill rise by $210 or 11.8 per cent over the next year.

Annual prices for AGL customers on standing offer and variable rate market contracts in Victoria will rise 8.6 per cent, or $134 for households and $691 for businesses on average.

Origin residential customers will see their annual bills rise 7.3 per cent or $125, while small businesses face an increase of 5.7 per cent or $462.

Gas is expected to get more expensive in Victoria as supply and demand falls.

The rates at both major energy companies are much higher in Victoria than interstate.

NSW AGL customers experiencing a $71 rise in household gas bills, while Origin customers can expect an $83 rise on average.

A combination of higher network, retailer operating and environment costs are behind the latest hit, with average market offer bills about $1500 for families.

But some Alinta Energy residential customers will see their annual costs reduce by 3 per cent or $50 on average.

St Vincent de Paul Society energy director Gavin Dufty said people were going to “get smashed” because they had been using more gas to heat their homes during the cold weather.

Mr Dufty said utility bill rises coupled with council rates, insurance repricing and increased NBN costs meant more household budgets would be under strain in the coming months.

“Anybody out there who’s feeling the pinch should get in touch with your energy company,” he said.

“They have provisions to support people. And don’t feel embarrassed because we’re all doing it tough at the moment.”

Australian Industry Group energy director Tennant Reed said even though wholesale gas prices had plummeted from the incredible highs of 2022, they probably weren’t going to “fall much, if at all”.

He said this was due to forecast gas shortfalls and higher production costs, such as piping gas from Queensland to southern states.

Energy Minister Chris Bowen said the government knew that people were “doing it tough” and expected retailers to “pass reduced costs onto customers where they can”.

Mr Bowen said its mandatory gas code of conduct had helped stabilise gas prices and better insulate Australian homes and businesses from the global energy crisis.

Chris Bowen says the federal government’s mandatory gas code of conduct helped stabilise gas prices. Picture: Martin Ollman

But opposition energy spokesman, Ted O’Brien, said: “Victorian households and businesses rely on gas like no other state in Australia, yet federal and state Labor refuse to actively pursue policies to increase supply which, by extension, also drives down prices”.

“As a result of Labor’s ideological hatred for gas, many Victorians are going cold this winter because they can’t afford it, while others are left wondering if gas will even flow when they try and turn it on,” Mr O’Brien said.

All energy retailers encouraged anyone having trouble paying their bills to contact them, adding they were spending millions on support for vulnerable customers.

Originally published as Victorians’ gas bills set to rise from August 1