Gas prices for Victorian residential and business customers on Variable Market Contracts will increase by an average of 27.3 per cent on 1 February 2023, following significant increases in the wholesale cost of gas.
EnergyAustralia confirmed prices for gas customers in Victoria on Variable Market Contracts will rise by an average of 26.7 per cent (around $480 per year, including GST) for around 245,000 residential customers and will increase by an average of 35.7 per cent for about 4,000 business customers.
EnergyAustralia sources its gas from wholesale markets under contracts, including contracts established in 2022 when wholesale costs increased by up to three times the prior year’s average.
Other cost increases contributing to the Variable Market Contract increase include the cost of gas distribution networks, government green schemes and inflation of retail costs.
EnergyAustralia Chief Customer Officer, Mark Brownfield, said, “We know the news of higher prices will not be easy for our customers however a perfect storm of factors in 2022, including the war in Ukraine and extreme weather events, pushed up wholesale gas prices.
“Recent government actions are focused on the wholesale gas price for future contracts. We supply customers from our existing wholesale gas contracts, some of which were contracted during 2022,” Mr Brownfield said.
“EnergyAustralia recognises that some customers may be struggling. Our message is that we’re here to offer support. If any of our customers believe they will be unable to meet their energy costs because of this increase, we can help through payment plans, extensions, a staying-connected guarantee and access to cashflow assistance for small businesses. If you are an EnergyAustralia customer facing difficulty paying your next bill, please get in touch with us as early as possible so we can help.”
Recent government intervention may lead to lower gas prices for future contracts to help reduce the impact of higher prices.
