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.