From the Grattan Institute today:
For some time the price of natural gas has been rising well above the cost of living. As with electricity, rising network prices are the main reason for a 36 per cent increase in average gas bills over the past five years. But in the next few years, huge changes in the gas market will push up prices even more sharply, adding more than $300 a year to the average household gas bill in Melbourne and over $100 a year in Sydney and Adelaide. The increases will mean tough decisions for many households and businesses.
Natural gas is one of Australia’s main sources of energy. We use it to cook, heat water and heat our homes. It is an important fuel source for businesses such as dry cleaners and commercial food processors. Some large industries, such as explosives and fertilisers, use it heavily as a primary material in production. It is also used to produce electricity, and produces fewer CO2 emissions than coal does, while being more affordable than most renewable energy sources. Gas has always been commercially competitive, with heating qualities that most prefer to electricity.
