11 February 2016
IPART is calling for submissions on proposed changes in regulated retail gas prices in NSW from 1 July 2016.
Under proposals submitted by retailers AGL, Origin Energy and ActewAGL, on average regulated retail gas prices would change from 1 July 2016 as follows.
- Reduce an average of 3.5% for AGL customers in Sydney, Wollongong, Newcastle, Dubbo, Orange, Parkes and parts of the Riverina region.
- Increase an average of 0.5% for Origin Energy customers in the Albury/Murray Valley region.
- Increase an average of 1.1% for Origin Energy customers in the Wagga Wagga region.
- Reduce an average of 2.4% for ActewAGL customers in the Capital area.
- Reduce an average of 7.0% for ActewAGL customers in the Queanbeyan area.
- Increase an average of 2.5% for ActewAGL customers in the Shoalhaven area.
Most NSW gas customers are on market contracts, so any change in regulated gas prices would impact around 20% of residential and small business customers.IPART Chairman, Dr Peter Boxall said retail and wholesale costs make up about half the final regulated gas price, with gas network costs making up the other half.
“Retailers are proposing to either keep the retail and wholesale component of prices the same, or to increase it by the rate of inflation,” Dr Boxall said.
“The variation in average price changes outlined above is largely the result of different underlying network prices, most of which are yet to be finalised or, in the case of the Jemena network that supplies AGL and some ActewAGL customers, is subject to appeal.”
“As a result, the final regulated gas prices to apply from 1 July 2016 are uncertain.”
IPART is keen to hear from stakeholders on the retailers’ proposals. Submissions are due on 7 March 2016. There will also be further public consultation on a Draft Report and public hearing in May 2016. IPART will release a Final Report in early June 2016 in time for the new prices to come into effect from 1 July 2016.
The retailers’ pricing proposals and IPART’s Fact Sheet are available on IPART’s website <http://www.ipart.nsw.gov.au>.
Media Contact Julie Sheather 02 9290 8403 or 0409 514 643