East coast gas prices are too high, ACCC declares

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The Australian Competition and Consumer Commission (ACCC) has thrown down the gauntlet on gas producers, claiming price savings aren’t being passed down to consumers.

In a new report, the consumer watchdog found that at some points last year, retail gas prices were approximately 25 per cent above expected gas export prices for this year.

The ACCC estimates the average price east coast consumers are paying for gas at $9-$12 a gigajoule. This is in contrast to the gradual decline in average export costs resulting in prices of $7.50 a gigajoule by August 2019.

ACCC Chair, Rod Sims, has commented on the difference between gas prices offered to everyday Australians and their original export price.

“[It] is a concern for the ACCC and in 2020 we intend to now delve much deeper into the reasons why this is occurring,” he said.

Mr Sims also suggests that since August, ‘netback’, or export prices, have fallen even more.

“Average netback prices expected for 2020 have been under $7/GJ since November 2019, which is well below prices being offered to domestic buyers,” he said.

“We have been watching prices closely, and have observed instances where prices offered have included a fixed price component, on top of an LNG spot price linked component.”

The report also suggests that gas prices remained high for an extended time due to a prolonged period where supply was less than what it is today. Though the period of concern over gas supply still may not be over, as questions for the long-term supply of natural gas in southern states still looms.

In light of that, the report points the finger at natural gas producers to avoid the practice of ‘warehousing’, where development is deliberately delayed, holding gas back from the market and keeping prices high for consumers.

Can I still save on gas?

Whilst you can’t control the gas market, what you can do is make sure you’re on the cheapest gas deal available to you. Compare plans on our database below.

Gas Plans Compared in VIC

Here are some of the cheapest gas deals on our database for Victoria. These estimated annual costs are based on the Australian Gas Network in Melbourne with a daily gas usage of 80MJ, but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest estimated cost. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.

Brand Features Price(estimated**)
Origin Logo
Energy Fact Sheet

Max Saver – Online Special

Conditional Discounts

  • 20% discount off gas usage and supply charges for paying by direct debit

Other Features:

  • Must sign up to direct debit & e-fulfilment
12 Month
Benefit Period
$786
incl. conditional
discount

 
Go To Site
Momentum Energy Logo
Energy Fact Sheet

Momentum Gas

No Conditional Discounts

Other Features:

  • $50 online sign-up credit
12 MonthBenefit Period $836

Go To Site
AGL Logo
Energy Fact Sheet

Essentials Saver

No Conditional Discounts

OngoingBenefit Period $848 Go to Site
Energy Australia Logo
Energy Fact Sheet

Total Plan

No Conditional Discounts

Other Features:

  • 27% guaranteed discount off gas usage and supply charges
  • Fixed rates for 12 months
12 Month
Benefit Period
$857 Go to Site
Click Energy Logo
Energy Fact Sheet

Flora Gas

No Conditional Discounts

OngoingBenefit Period $866 Go to Site
Powershop Energy Logo
Energy Fact Sheet

Market Offer

Conditional Discounts

  • 5% discount off gas usage and supply charges for fulfilling e-communication requirements

Other Features:

  • Pre-payment required
OngoingBenefit Period $867
incl. conditional
discount
Go To Site

Gas Plans Compared in NSW

Here are some of the cheapest gas deals on our database for NSW. These estimated annual costs are based on the Jemena Gas Network in Sydney and daily gas usage of 50MJ, but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest estimated cost. This table includes products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.

Brand Features Price(estimated**)
Alinta Energy Logo
Basic Plan Information

Home Deal

No Conditional Discounts

OngoingBenefit Period $732 Go To Site
Click Energy Logo
Basic Plan Information

Banksia Gas

No Conditional Discounts

OngoingBenefit Period $748

Go To Site
Simply Energy Logo
Basic Plan Information

Simply NRMA

No Conditional Discounts

Other Features:

  • Price includes a $50 sign-up credit
12 Month
Benefit Period
$749 Go To Site
AGL Logo
Basic Plan Information

Essentials Saver

Conditional Discounts

  • $25 credit off first bill for signing up online
12 Month
Benefit Period
$750
incl. conditional
discount
Go To Site
Energy Aus Logo
Basic Plan Information

No Frills

No Conditional Discounts

Other Features:

  • Fixed rates for 12 months
12 Month
Benefit Period
$750

Go to Site
Origin Energy Logo
Basic Plan Information

Max Saver – Online Special

No Conditional Discounts

Other Features:

  • 10% guaranteed discount off gas usage and supply charges
  • Must sign up to direct debit & e-fulfilment
12 Month
Benefit Period
$774 Go To Site

Gas Plans Compared in WA

Here are some of the cheapest gas deals on our database for WA. These estimated annual costs are based on the ATCO Network in Perth and daily gas usage of 24 (units), but prices may vary depending on your circumstances. We show one product per retailer, listed in order of lowest estimated cost. This table includes products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.

Brand Features Price(estimated**)
AGL Logo

Set and Forget

Conditional Discounts

  • 48% discount off gas usage charges for paying by direct debit

Other Features:

  • 10,000 flybuys points for online sign-up
24 MonthBenefit Period $775
incl. conditional
discount
Go To Site
Simply Energy Logo

Simply Plus

Conditional Discounts

  • 40% discount off gas usage charges for paying on time
24 MonthBenefit Period $863
incl. conditional
discount
Go To Site
Origin Logo

Max Saver Usage

Conditional Discounts

  • 35% discount off gas usage charges for paying on time by direct debit

Other Features:

  • Must receive bills via email and sign up to e-communication
12 MonthBenefit Period $900
incl. conditional
discount
Go To Site
Origin Logo

Monthly Energiser

Conditional Discounts

  • 35% discount off gas usage charges

Other Features:

  • Direct debit payment required and email bills
24 Month
Benefit Period
$925
incl. conditional
discount
Alinta Energy Logo

Fair Go 35

No Conditional Discounts

Other Features:

  • 35% guaranteed discount off gas usage charges
12 MonthBenefit Period $971 Go To Site

Gas Plans Compared in SA

Here are some of the cheapest gas deals on our database for SA. These estimated annual costs are based on the Australian Gas Network in Adelaide and daily gas usage of 40MJ, but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest estimated cost. This table includes products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.

Brand Features Price(estimated**)
AGL Logo
Basic Plan Information

Essentials Saver

Conditional Discounts

  • $25 credit for signing up online
12 Month
Benefit Period
$816
incl. conditional
discount
Go To Site
Alinta Energy Logo
Basic Plan Information

No Fuss

No Conditional Discounts

OngoingBenefit Period $817 Go To Site
Lumo Logo
Basic Plan Information

Basic

No Conditional Discounts

OngoingBenefit Period $841 Go To Site
Red Energy Logo
Basic Plan Information

Qantas Red Saver

No Conditional Discounts

Other Features:

  • 2 Qantas Points per $1 spent on energy when bills paid on time
OngoingBenefit Period $855 Go To Site
Origin Energy Logo
Basic Plan Information

Max Saver

No Conditional Discounts

Other Features:

  • 10% guaranteed discount off gas usage and supply charges
  • Must sign up to direct debit & e-fulfilment
12 Month
Benefit Period
$870 Go To Site
Energy Aus Logo
Basic Plan Information

No Frills

No Conditional Discounts

Other Features:

  • Fixed rates for 12 months
  • Must pay by direct debit
12 Month
Benefit Period
$928

Go to Site

Gas Plans Compared in QLD

Here are some of the cheapest gas deals on our database for QLD. These estimated annual costs are based on the Australian Gas Network in Brisbane and daily gas usage of 25MJ, but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest estimated cost. This table includes products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.

Brand Features Price(estimated**)
AGL Logo
Basic Plan Information

Essentials Plus

Conditional Discounts

  • $25 online sign-up credit

Other Features:

  • $40/year bill credit
24 Month
Benefit Period
$635
incl. conditional discount
Go To Site
Origin Energy Logo
Basic Plan Information

Max Saver – Online Special

No Conditional Discounts

  • 3% guaranteed discount off gas usage and supply charges
12 Month
Benefit Period
$724 Go To Site
Red Energy Logo
Basic Plan Information

Qantas Red Saver

No Conditional Discounts

Other Features:

  • 2 Qantas Points per $1 spent on energy when bills paid on time
OngoingBenefit Period $727 Go To Site

Image credits: Yevhen Prozhyrko/shutterstock.com

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