Anthony Roberts med rel: NSW Government welcomes price relief for gas customers

Minister for Resources and Energy Anthony Roberts today welcomed a proposal from gas network operator Jemena to decrease network prices for its NSW customers by up to 20 per cent over five years.

Jemena is the State’s largest gas distribution network, supplying 1.2 million customers across NSW.

Mr Roberts said residential customers will benefit from the reduction in the distribution component of their retail gas bill, which makes up around half of the bill for an average residential gas customer.

“Jemena has put forward a proposal to the Australian Energy Regulator (AER) to decrease network prices by 20 per cent over five years from 1 July 2015,” Mr Roberts said.

“This means the average customer in NSW will save around $271 over this period if the proposal is approved.

“Jemena has stated that it is one of the most efficient gas networks in Australia and will aim to make more improvements in productivity in coming years.

“I am pleased this pricing proposal has been driven by extensive engagement with Jemena’s customer base. This engagement is a requirement of the new National Energy Customer Framework, which was introduced by the current NSW Government in 2013.

“The NSW Government is committed to putting downward pressure on gas prices and turning around Labor’s legacy of failure and inaction over 16 years.

“On 10 June 2014, the Independent Pricing and Regulatory Tribunal (IPART) determined an average increase to the regulated retail gas price of 17.7 per cent over two years. This will affect the fewer than 25 per cent of NSW gas customers who remain on the regulated price and I encourage customers to shop around to make sure they are getting the best deal possible.

“Prior to this determination, the NSW Government made a strong submission to IPART, highlighting the Customer Acquisition and Retention Costs (CARC) for careful consideration and the need to ensure any increase was justifiable.

“As a result of the Government’s submission, the price set by IPART is up to seven per cent lower than what was originally proposed by gas retailers.

“Once Labor’s Carbon Tax is abolished, customers will see the increase further reduced by up to a third, which means more money back into people’s pockets.

“NSW imports more than 95 per cent of its gas from interstate and is susceptible to any price increases in the wholesale price of gas.

“The Liberals and Nationals NSW Government has proven its commitment to driving down the cost of living for NSW households and businesses.

“$5.4 billion in electricity network spending has been stopped. These are costs that will no longer be passed onto households and businesses.

“The Liberals & Nationals Government will continue to drive savings and keep downward pressure on the cost of living for the people of this State.”