It’s official – gas bills for many households in New South Wales are about to soar.
The Independent Pricing and Regulatory Tribunal (IPART) has given the nod to a massive increase in regulated gas prices of 17.8% from July 1.
“From 1 July 2014 typical annual gas bills will rise by between $155 and $225 for households, depending on where they are located and how much gas they use,” says IPART.
The reason for the rise is due to Australia exporting gas to lucrative overseas markets. The ongoing calls for increased gas drilling have had nothing to do with securing cheap gas for the domestic market and everything to do with chasing big overseas bucks.
So not only is this non-renewable resource being stripped from Australia at a rapid clip and leaving environmental problems in its wake; the average Australian is also being penalised in the hip pocket as a result instead of benefiting from the huge quantities of gas being produced.
While the increases in New South Wales apply to the 25% of consumers who are on regulated tariff; IPART says those on market tariffs may also face price increases, depending on their contract.
The price increases include a carbon component for 2014/15. If the carbon price is repealed during the period, the regulatory framework allows for the carbon
component to be removed from regulated prices.
Gas is rapidly losing its reputation as a cheap energy source and where New South Wales is going, other states will follow.
The ongoing gas price increases makes going solar even more attractive – either through installing a gas-boosted solar hot water system that can reduce water heating costs by up to 75%, or a rooftop solar panel system to help offset gas bills. A heat pump or rooftop solar combined with an electric-boosted solar hot water system are also solid money-saving options.
