icon-gas Gas standing contract price path inquiry 2008

  • Project Released: 19 Nov 2007
  • Project Closes: 24 Jun 2008
  • Contact: Peter Lim

Overview

The Commission conducted an Inquiry into the retailer component of regulated gas prices to apply from 1 July 2008 to 30 June 2011. The retailer component, charged by Origin Energy, represents just under half of an average residential gas bill.

Status

Current status is Final

  • Initiate
  • Submissions
  • Draft
  • Submissions
  • Final

Final

The Commission has released its Final Inquiry Report and Final Price Determination on the retail component of regulated gas prices to apply from 1 July 2008 to 30 June 2011.

Having considered the proposal put forward by Origin Energy, submissions from interested parties and expert reports it has commissioned, the Commission’s final decision is to set a gas standing contract price path lower than that proposed by Origin Energy.

Origin Energy’s proposed price path vs. Commission’s final price path
Retail Component Change (%)
1 JUL 2008
1 JUL 2009
1 JUL 2010

Residential

Origin Energy Proposal
8.6%
CPI + 1.6%
CPI + 2.2%
Commission's final price path
8.25%
CPI + 1%
CPI + 1%

Small and Medium Enterprises

Origin Energy Proposal
17.25%
CPI + 0.7%
CPI + 1.6%
Commission's final price path
15.0%
CPI + 0.8%
CPI + 0.8%

 

As the retailer component of tariffs represents just under half of an average residential gas bill, the Commission’s price path will result in a rise of approximately $15 to an average annual residential bill (around 3% of the total annual gas bill). Annual price changes to the retailer component of regulated gas bill will be lower than this initial price increase, in real terms.

As market contracts continue to offer lower rates than the standing contract, customers remaining on the standing contract can ameliorate the effects of the new price path by moving to a market contract.

Publications