Western Australia’s gas market has received a significant jolt with the news that the country’s biggest energy company is promising to offer the cheapest deal in the state.
Origin Energy has entered the WA gas market, taking the number of retailers operating in the Perth area to four – alongside Alinta Energy, Kleenheat and AGL. And that increased competition looks set to pay off for consumers, with Origin undercutting the rest on price from the outset.
Origin calls its ‘Maximiser’ gas plan the most competitive natural gas offer in Perth, delivering 35% off gas usage charges provided customers pay their bills by direct debit and receive their bills via email.
Origin already sells bottled gas (LPG) across parts of WA, but only now will it be directly servicing homes.
“Origin is excited to be expanding our presence in WA to support the local community with lower gas bills and a great range of products and services,” said Duncan Permezel, General Manager of Retail Sales at Origin Energy. “For customers who haven’t reviewed their gas bill for a couple of years, chances are they’re paying more than they need. With one quick phone call to Origin or a few minutes online, an average household could save around $210 a year on their natural gas bill.”
In addition to the Maximiser plan, Origin has a range of other natural gas offers for customers, depending on their needs. The full plan line-up is as follows:
Origin Energy Gas Plans in WA
This is Origin’s flagship natural gas product for WA, delivering a 35% discount on gas usage charges when customers pays their bills by direct debit and receive their bills via email. It comes with a 12 month benefit period, which means the discount will be lost after this time, unless you negotiate a new deal.
- Cost: Origin claims households on this plan will pay around $60 a month for their gas
This Origin gas plan is targeted at customers who would rather not pay their bills by direct debit, but can still pay on time. A discount of 33% off gas usage charges is available for paying bills on time. With the Saver plan, you can still receive bills by mail.
- Cost: Origin estimates households on this plan will pay around $61 a month for their gas
Origin Bill Saver
The Origin Bill Saver plan provides another option for customers who don’t want to pay their bills by direct debit and often struggle to pay by the due date. This plan offers a total bill discount (gas usage & supply) of 22%, with the discount not reliant on paying by direct debit or on time.
- Cost: Origin says households on this plan can expect to pay around $69 a month for their gas
The above cost estimates are based on typical gas usage in WA.
How does Origin compare to other gas suppliers in WA?
Origin Energy claims households in WA could save as much as $210 a year on their gas, compared to the state’s three other gas retailers. The following table shows the Origin Maximiser plan compared with offers from Alina, Kleenheat and AGL at the time of launch:
|Gas Supplier / Plan||Discount||Annual Gas Bill|
|Alinta Energy / Standard||0%||$628|
|AGL / Set & Forget||22%||$510|
|Kleenheat / SmartSaver||25% + $50||$441|
|Origin / Maximiser||35%||$418|
Source: Origin Energy, accurate as of October 2017. Costs based on annual gas usage of 14,400 MJ.
Origin Energy’s arrival in WA looks set to trigger some very welcome gas price competition. No matter how long you’ve been with your existing provider, it’s a good time to review your options and consider how much you could save by switching.
It should be noted that Alinta Energy also offers a discounted deal not included in the table above. With 25% off usage charges, it would more closely align the cheapest plans listed. To get the cheapest deal from Alinta, you may need to call the retailer and discuss your options. Sometimes negotiating an improved deal with your existing retailer is the key to getting the cheaper deal.
Things to be aware of
The extra competition in WA should put a downward pressure on prices, but be sure to do your homework before signing up to a new plan. AGL and Origin have both entered the market with three different gas offers to consider, based on different household needs and preferences. Most of these deals include big discounts, which will help to reduce your overall costs, as long as you stick to the conditions.
Navigating all of these options can be confusing, so don’t rush into any big decisions. It may also be worth talking things through with your existing gas supplier before switching, in case they can offer you improved terms to stay. Sometimes using new offers as leverage and negotiating an improved deal from your existing retailer is the secret to getting the best deal possible.