The Australian Energy Regulator has accepted Allgas Energy Gas Network’s annual tariff variation serving end users in southern Brisbane, the Gold Coast, Toowoomba and Oakey for reference and ancillary reference services for 2014–15. The proposal determines the allowable increase in the gas prices for the distribution component of gas bills.
This pricing proposal covers gas distribution costs. These typically comprise approximately 40 to 60 per cent of a residential gas bill.
We assessed the annual tariff variation notice to ensure its compliance with our 2011 access arrangement determination. We looked specifically at whether the proposed increases are consistent with the price path already approved in that determination.
Overall the increase in distribution prices will mean a rise in the average residential retail bill of about 3.5 per cent, or $31.91, in the year to June 2015.
Approved charges include an allowance of $2.69 for the carbon tax for the average residential customer. This will be returned to customers in future if the carbon tax is abolished.
|Residential tariff with 6GJ consumed per annum||Change in retail bill due to network price changes||Change in annual costs due to network price changes|
|Distribution||3.2 per cent||$29.22|
|Carbon tax||0.3 per cent||$2.69|
|Total network||3.5 per cent||$31.91|
Note: assumes that distribution costs make up 50 per cent of the retail bill.