QLD gas price smashes average
Queensland residential gas prices are over twice the national average.
The Federal Government-commissioned Gas Price Trends Review 2017, shows Queensland households paid an average of 6.4 cents per megajoule in 2017, while the national average retail gas price was 2.9 cents.
The reticulated (piped) gas network serves 250,000 customers in the state’s south-east, while similar networks serve closer to one million customers each in NSW and Victoria.
One of the report's lead authors, Jim Snow from energy consultancy Oakley Greenwood, said distance and lower usage made prices so high.
“It comes down to the cost of distribution in Queensland,” he said.
“It's such a low usage in the households, so it drives up the cost to run all those pipelines.”
The cost of distribution makes up 3.78 c/MJ of the 6.4 c/MJ price, with the next biggest component coming from the cut paid to the two retailers AGL and Origin, at 1.5 c/MJ.
The retailers earn more than twice the national average of 0.7 c/MJ.
Queensland Energy Minister Anthony Lynham said he would study the report's findings.
“I'll be looking at the retail costs as well as I am looking at retail costs with electricity, and you can see what we're doing to decrease retail costs for electricity supply,” Dr Lynham told the ABC.
“I'll be having a close look at that document and looking at retail costs for the gas sector as well.”