Compare WA Gas Suppliers

Kleenheat on top as WA gas market heats up

The Western Australia gas market is almost unrecognisable from just a few years ago, with new retailers now competing for your business and genuine price competition helping you save. While the WA gas market has been fully contestable since 2004, Alinta Energy was the state’s only residential and small business gas provider for many years. In March 2013, however, Kleenheat launched its WA gas service, stepping up as the first serious challenger to Alinta in Perth and other areas along the west coast. Since then, energy giants AGL and Origin have also moved west to compete for customers, resulting in a state of intense price competition – meaning it’s time to take advantage.

Each year, Canstar Blue will survey gas customers across WA to find out which suppliers are living up to expectations in regards to price and customer service. As AGL and Origin are still new to WA, they have not yet achieved the minimum sample size required to be included in the ratings, leaving Kleenheat and Alinta Energy to fight it out for the second time. Last year, Kleenheat rated highest for overall customer satisfaction, customer service and value for money – a result repeated in our latest review. Read on for details of this year’s research, as well as our price comparison for all four gas suppliers now operating in WA. The competition means you should now have the opportunity to save on your gas bills – but only if you’re proactive and shop around.

WA Gas Suppliers

Kleenheat

Kleenheat is part of the Wesfarmers group, which also includes supermarket giant Coles and retail stores such as Target, Kmart and Bunnings. This connection can pay off, with Kleenheat offering $50 store gift cards or 10,000 flybuys points when customers switch their natural gas to the Monthly Smart Saver plan or Standard Form Contract. Further flybuys points can also be earned going forward, with one point awarded for every dollar spent on gas bills. Kleenheat also provides a guaranteed 25% discount off gas usage charges for the first 24 months. To benefit, payments must be made in monthly instalments by direct debit. The retailer also now offers a ‘Monthly Energiser’ plan, with the discount increased to 35% for the first 12 months. RAC members can also enjoy an extra 3% off their gas usage charges. See the Kleenheat website for specific details of all product offers. Since launching its retail gas services in Perth in 2013, Kleenheat has been chipping away at Alinta Energy’s market dominance. The retailer has again rated five stars for overall customer satisfaction, plus value for money and customer service.

Alinta Energy

A major gas and electricity retailer across Victoria, New South Wales and South Australia, Alinta Energy also maintains a strong presence in Perth, despite being acquired by Chow Tai Fook Enterprises – a Hong Kong based conglomerate – in 2017. Alinta certainly seems to have reacted to the increased competition in WA, offering a 25% discount off gas usage charges for 24 months. Customers can also collect rewards points to earn discounts off things like movie tickets, theme park tickets and other attractions. Check the Alinta Energy website for specific details on all product offers. Like last year, Alinta has earned four stars for overall customer satisfaction, in addition to value for money and customer service.

AGL

AGL was the first of the big two energy companies to make the move to Western Australia, now offering residential customers three different gas plans to choose from. These include a fixed rate plan that sees usage and supply charges locked in for two years, meaning that prices won’t be increased during the 24 month benefit period. AGL also offers two variable rate gas plans with large conditional discounts. One applies a discount for customers that are happy to set up direct debit payments, while a slightly smaller discount is on offer for customers who do not wish to pay by direct debit but still pay on time. Discounts apply to usage charges only. All three plans also provide access to AGL’s rewards program which brings discounts on movie tickets and meals at certain restaurants, amongst other things. See the AGL website for specific product details.

Origin

Energy giant Origin arrived in Western Australia to much media attention in 2017. It gives households in the state three different gas products to pick from based on personal preference. The biggest discount is conditional on receiving bills via email and paying by direct debit, with a slightly smaller discount up for grabs for customers who would prefer not to set up automatic payments but can still pay on time. Both plans have a 12 month benefit period and discounts apply to usage charges only. Origin’s third gas plan in WA brings a smaller, but guaranteed, discount which is applied to both usage and supply charges. The benefit period can be 12 or 24 months. This plan also offers a range of billing and payment options.

Perth Energy

Perth Energy has been supplying natural gas to businesses across Perth and other parts of WA for more than 15 years, but is also due to start retailing to residential gas customers in the near future. Interested customers are currently being invited to register their interest, with Perth Energy already declaring that a discount of 25% will be available. Perth Energy also sells electricity to business customers.

Simply Energy

Another retailer from the east coast moving west, Simply Energy has also been granted a license to retail natural gas in the Perth area and should launch by mid-2018. Simply Energy is known for providing big discount offers, in addition to other incentives such as free movie tickets. It has also partnered with leading sports clubs in NSW and Victoria to provide exclusive offers to supporters.

What about electricity providers in WA?

All residential electricity customers in Western Australia are supplied by Synergy. While competition is thriving in the gas market, Synergy remains the only electricity retailer for households in the Perth area. However, large businesses have several retailers to choose from.

Where is natural gas supplied in WA?

Our customer satisfaction ratings are based on the feedback of natural gas customers, rather than those who purchase bottled LPG. In order to connect natural gas to your home or business, you must live in an area with reticulated gas mains. As you can see from the map (right), supplied by the WA Department of Finance, natural gas is only available in the most populated regions, including areas surrounding Perth, Busselton, Gingin, Albany, Kalgoorlie-Boulder, Geraldton, Mullewa and Carnamah.

Alinta Energy services all of the highlighted areas in the map, while Kleenheat, Origin and AGL can only service those regions along the western coast, from Busselton to Geraldton, which includes the greater Perth area. In Kalgoorlie-Boulder and Albany, Alinta is the only natural gas provider. If natural gas is not available to your property, a gas supplier may be able to arrange a quote from the network operator to extend the gas mains to your home or business. However, this is only practical if the property is already near a gas network. Alternatively, If the property is located in a remote area, the only option might be bottled LPG. Kleenheat and Alinta Energy both operate LPG services in some areas, as do other retailers including Origin, AGL, Elgas and Plusgas.

WA Gas Prices

Gas prices in Western Australia remain regulated by the state government for small usage customers. A customer is considered to be ‘small use’ if their property uses less than 1 terajoule (TJ) of natural gas per annum. This will realistically include all households and most small businesses. This means the providers are set a limit as to what they can charge customers.

The price of natural gas in WA is made up of supply and usage charges.

• A supply charge is a daily fee for being connected to the mains gas network and applies regardless of whether or not the property uses any natural gas
• Usage charges are incurred for the natural gas actually used. These charges are provided in terms of ‘units’, with one unit equating to 3.6 megajoules of gas – equivalent to 1kWh of electricity

Customers in the Kalgoorlie-Boulder and Albany areas of WA are charged a standard flat rate for their natural gas consumption. But customers in Mid-West/South-West WA (i.e. Perth, Geraldton, Carnamah and all the surrounding areas) are typically charged in block usage rates. Under this pricing structure, customers receive one rate for the first 12 units (43.2 MJ) of gas used per day and a lower rate for any additional gas usage beyond that. To put that into perspective, the average gas oven will use around 12 megajoules an hour.

Below we have listed the natural gas prices for Alinta Energy, Kleenheat, AGL and Origin. As you will see, Alinta and Kleenheat’s gas prices are aligned with the maximum price that gas companies are allowed to charge under WA law. AGL and Origin are slightly cheaper, but only by a fraction of a cent. These prices don’t factor in discounts, however. It’s also worth saying that AGL and Origin have multiple gas offers to consider, including a fixed rate deal in the case of AGL.

Mid-West/South-West WA Gas Prices (Including Perth)

*Source: Department of Treasury website. Prices as of January 2018.

Kalgoorlie-Boulder Gas Prices

*Source: Department of Treasury website. Prices as of January 2018.

Albany Gas Prices

*Source: Department of Treasury website. Prices as of January 2018.

Where does natural gas come from?

Natural gas is produced and refined by large, international fuel companies, such as BHP Billiton, BP, Chevron, ExxonMobil, Santos, Shell and Woodside Energy. Most of Western Australia’s gas supply comes from the off-shore Carnarvon, Browse and Bonaparte basins. Once it’s extracted, the gas is transported to mains gas systems across the state via high-pressure gas pipelines.

The natural gas mains system in WA is operated and maintained by ATCO Gas Australia (formerly WA Gas Networks). This is who you should contact if anything goes wrong with your gas supply, or in case of an emergency, such as a gas leak. ATCO is responsible for meter readings and passes this information onto your energy retailer for billing purposes. Your retailer – be it Alinta, Kleenheat, Origin or AGL – will then bill you for your gas usage and collect the additional supply charges on behalf of ATCO.

Natural gas for WA businesses

Kleenheat, Origin, Alinta and AGL sell natural gas to business customers. Medium to large businesses have a few extra options as Synergy and Perth Energy retail natural gas to customers consuming at least 180 gigajoules (GJ) of gas per annum, or about $6,000 per year. Businesses that don’t use this much gas will remain limited to the options we’ve just mentioned. While natural gas prices are only regulated for customers consuming less than 1 TJ of gas per annum, large businesses in WA are free to negotiate rates with their retailer.

What’s next for the WA energy market?

The Western Australia government has allowed competition in the residential gas market for years, yet only recently have things begun to heat up. As mentioned, AGL and Origin have recently joined the WA natural gas market, while another retailer, Perth Energy, is seeking expressions of interest as it too gears up to supply WA homes with natural gas.

AGL, Origin and any other potential newcomers will have their work cut out for them to get a foothold in the WA gas market as prices remain regulated and there is minimal difference in price. However, the large conditional discounts now being offered are proving the main point of difference. Our survey of WA gas customers found that two-thirds (66%) think they get a good deal on gas, with 28% switching suppliers in the last two years, Of those who have switched, seven out of ten (71%) believe it has proved a good financial decision. Just 14% are not convinced switching has paid off, while a further 15% believe it’s too early to tell.

Of those customers who haven’t switched gas suppliers in the last two years, more than half (53%) said it’s because they are happy with their existing retailer. However, a significant 29% would like to switch but can’t find the time, while a further 22% find the process too complicated.

Interestingly, our research found that natural gas customers in Western Australia are generally more satisfied with their service than customers in other states of Australia. However, with new retailers likely to join the residential gas market in the years to come, customers should regularly review their energy options and compare plans in their area. While WA gas prices remain regulated, the retailers can still compete to offer the best deals and service.

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