01.Gas prices on the rise in NSW
Typical consumers of gas in NSW will pay between $150 and $225 more each year on their gas bill, following a draft decision from the Independent Pricing and Regulatory Tribunal (IPART).
IPART’s decision allows for an average 17.6% increase in the regulated retail gas price – seven per cent less than what retailers were originally seeking. The increase will take effect from 1 July 2014, and IPART has said prices would remain relatively stable through to 2016.
The decision comes off the back of a recent move by the NSW government to deregulate electricity prices.
Chairman of IPART, Dr Peter Boxall, said the increases were largely due to rising wholesale gas prices. This is because that, given the ability to export Liquid National Gas from Australia’s eastern seaboard, consumers will be exposed to gas prices in the world markets.
In addition to the increase in wholesale prices, gas network costs are also contributing to the rise in the regulated price, said Dr Boxall.
Most gas customers in NSW are already on a market contract with less than 25% of the regulated price.
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