Comparatively economical gas hot water systems won’t be so cheap to run soon.
While Australia will triple its gas production in the near future, prices are set to increase as well; adding even more pain to businesses and households still reeling from rapid electricity price rises.
The reason is much of the new gas will be exported to Asia, which pays almost triple the wholesale price of gas compared to locally. This will put upward pressure on domestic pricing.
The Consumer Utility Advocacy Centre’s Martin Jones fears consumers won’t see this coming and they could be facing bill rises of between $50 and $500 depending on gas consumption.
Australia’s love affair with gas exports could also cost 100,000 local jobs according to Manufacturing Australia’s Sue Morphet as the rises will have a marked effect on businesses relying on gas for various processes.
While businesses and consumers may not be able to halt the export gas juggernaut, they can take some steps to help protect themselves from the effects of it.
Solar power can be utilised in 2 ways. Solar hot water systems can in many cases practically wipe out a water heating gas bill and a solar panel system used in conjunction with electric hot water storage can also offset water heating costs.
Gas price rises may be closer than many realise. For example, earlier this year it was reported AGL wants to add an extra 20 per cent for customers in the greater Sydney region and inland New South Wales. Origin Energy was also proposing a similar increase for the south-west of the state from July this year.
According to Zero Emissions‘ Matt Wright, common major gas appliances already have an electric competitor on price and performance; including induction cooktops, heat pumps and reverse cycle air-conditioners.
