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Gas bills set to rise in Victoria and Albury next year

Residential gas bills in Victoria and Albury are set to rise next year, following an increase to the distribution costs of delivering gas supply to customers.

The Australian Energy Regulator (AER) has approved the 2022 gas tariffs as outlined by the region’s natural gas distributors – Ausnet Services, Australian Gas Networks and Multinet.

This means from January 1, the typical gas bill for residents will rise by up to $20 a year, which the AER noted is due to inflation and rising network costs.

Network costs typically cover things like the operation, maintenance and distribution of gas through the underground network of pipes, otherwise known as the gas mains. These costs usually make up around a third of residential gas bills in Victoria.

Small business customers can also expect gas bills to rise between roughly $8 and $67, depending on location.

A similar increase to network costs occurred for electricity bills in Victoria recently, which has seen customers on standing or default offers pay between $3 and $6 more a month.

Gas distribution tariffs are updated on a yearly basis with the approval of the Australian Energy Regulator. Tariffs are determined by the expected revenue of each network for the coming year.

The updated pricing for these tariffs does not take into account any movements in wholesale gas prices.

How much are gas prices increasing?

Below you’ll find the expected annual gas bill increase for both residential and non-residential customers across three distribution networks in Victoria and Albury. It is important to keep in mind that these prices are based off the average annual consumption in these areas and therefore, may be higher or lower for your household, depending on your gas usage.

Network Residential Bill Increase (2022) Non-Residential Bill Increase (2022)
AusNet Services (central zone) $2.43 $8.66
AGN (central zone) $19.67 $17.36
Multinet (metropolitan area) $19.34 $67.03

Source: Australian Energy Regulator.

What are network costs on my gas bill?

Network costs are charged to customers on behalf of the gas distributor, not the gas retailer, to help cover the costs of supplying gas to homes and businesses. Through this charge, bill-payers help cover any maintenance, operational or building fees that come with distributing gas through the network.

Some gas retailers will include the gas network costs into their customers’ existing plan already, by charging higher usage or supply rates. Other providers, however, may just add the costs onto the final bill.

Image credit: In Green/

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