‘Worst-case’ gas bills for Vic, more pain ahead

Price notices, which have gone out to many of Victorians, are warning of annual gas costs soaring by as much as $1100.

Victorian families are being slugged with massive gas bill hikes of more than $1000 this year.

From February 1, the big three energy companies are advising households of average price rises of at least 20 per cent or up to $480.

But residential gas bills for larger family households, particularly those with smaller retailers, are surging by even more.

Price notices which have gone out to many of these Victorians, obtained by the Herald Sun, show they have been told to expect their annual gas costs soaring by as much as $1100.

Homes receiving these whopping increases typically rely on gas for heating in winter and have been warned of massive increases to the rate at which their gas is charged.

In some notices, the cost per megajoule has gone up by as much as 50 per cent.

Treasurer Jim Chalmers warned hikes of 20 per cent were a ‘worst-case scenario’. Picture: Liam Kidston

Almost three quarters of Victorian households use gas, with nine out of ten customers on market offers rather than default standing offers.

Average market offer bills are around $1500 for families.

Social Policy Unit manager at the St Vincent de Paul Society, Gavin Dufty, said price rises meant good gas deals were drying up and customers should shop around when their contracts were ending.

“People are going to be falling off their chairs at the moment, market offers are coming off a low base and are going way up in percentage terms,” he said.

“Don’t move until your contract is expiring if you are on a good deal, don’t move before you have to, but now is a good time to scope out what deals are around when you need to change.”

Almost 250,000 EnergyAustralia gas customers on variable market contracts face an average rise of 27 per cent or around $480 a year.

Annual prices for Origin residential customers are set to increase 22 per cent or $370 on average from February 1, while costs for AGL customers will go up 25 per cent or $326 on average.

This is much higher than increases for AGL customers on standing offer and variable rate market contracts in New South Wales, who are facing a 9 per cent rise or $78 a year for gas.

Prices for its Queensland customers will increase by 5 per cent or $40 a year, while costs for South Australians households will go up 6.2 per cent or $56 a year.

The Herald Sun revealed late last year that standing offers were soaring by about $500 a year.

Vulnerable Victorian customers on AGL’s hardship program will receive a $200 bill credit in the winter period to minimise the impact from these price increases.

Federal Energy Minister Chris Bowen said most of the gas for 2023 has already been contracted but the price rises will be “a lot less than what they would have been without the intervention”.

“In addition, we’ve taken other steps, like negotiating with state governments, rebates to consumers to help them with the price rises that will happen despite our intervention,” Mr Bowen said.

Opposition leader Peter Dutton said families were feeling the cost of living pressures go up and up every day.

Victorians are urged to contact their retailer or go on the Victorian Energy Compare website to find the best deal.