AGL applies for huge gas price increase

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From the SMH:

The largest gas supplier in NSW, AGL, has applied for a hike in the regulated gas tariff that could see average household bills hit as much as $1136 a year.

AGL applied for the 20.3 per cent hike citing surging wholesale prices due to the planned export of large volumes of gas from Queensland.

As a result, the average household gas bill could rise from around $901 a year to $1033 for 2014/5 and as much as $1136 in 2015/16.

AGL said the planned export of gas from Queensland is forcing the wholesale gas price to around $6-$7 a gigajoule, up from $4.70 at present.

Already, the price in Queensland is estimated at around $9.40 a gigajoule.

This is still far below the export price in North Asia which is currently roughly $17 per gigajoule. Liquifaction, loses and shipping costs are $5 so that leaves more upside for local wholesale gas prices even accounting for contract discounts!

Comments

  1. Our political classes (all lawyers by the way) will only wake up to the realities of export parity gas pricing when their constituents are screaming.

    This has been bubbling away in the background for a while and represents a disaster for many manufacturers who use gas.

    LNG exporters will make a mint but all those Australians who loose their jobs will not do well out of flogging gas off to Japan at $12/GJ.

  2. Diogenes the CynicMEMBER

    Replace gas cook tops with induction stoves. If impossible just buy an induction cook plate that plugs in.

    Replace gas water heaters with heat pumps/solar PV/evacuated tubes.

    Not sure about heating but then I am in WA and that is a distant third issue here to the top two. Electrical floor heating works in small areas like bathrooms or tiled rooms that can be sealed effectively.

    Once done disconnect from gas and thumb nose at AGL.