Gas prices set to fall
Distribution charges for natural gas are set to be slashed from the start of the new financial year, after energy company Jemena’s pricing and services plan was endorsed by the Australian Energy Regulator in June.
As a result, distribution charges for a typical residential customer in New South Wales will be reduced by around $254 over the next five years.
The reduction is even greater for people living in regional areas, who typically consume more gas, where savings will average around $369 over the next five years.
Jemena’s managing director, Frank Tudor, said it is now up to energy retailers to pass these savings on to customers.
“Since 2014-15 gas distribution charges have made up a smaller and smaller portion of a customer’s total gas bill. In 2014-15 distribution charges accounted for around 50 per cent of a customer’s total bill, whereas today that figure is between 35 and 40 per cent,” said Mr Tudor.
Mr Tudor said that in determining the new pricing structure, the company conducted an extensive customer engagement program.
“Jemena met with individuals, families, small business owners and large industrial customers over a two-year community engagement program across NSW. We were told quite clearly, that customers wanted natural gas for cooking, heating, and hot water at a fair price, and that is what we have delivered.
“Now, as the economy recovers from the COVID-19 pandemic, and we’ve hit winter, it’s more important than ever for customers to have access to affordable gas.”
How much do you pay for gas? Do you think energy retailers will pass on the full saving from lower prices?