EnergyAustralia announces increases in Variable Market Contract prices for Victorian residential and business gas customers

January 17, 2023

EnergyAustralia today confirmed that gas prices for Victorian residential and business customers on Variable Market Contracts will increase by an average of 27.3% on 1 February 2023, following significant increases in the wholesale cost of gas.

Prices for EnergyAustralia gas customers in Victoria on Variable Market Contracts will rise by an average of 26.7% (around $480 per year, including GST) for around 245,000 residential customers and will increase by an average of 35.7% for about 4,000 business customers. The changes take effect on 1 February 2023.

EnergyAustralia Chief Customer Officer Mark Brownfield said: “We know the news of higher prices will not be easy for our customers however a perfect storm of factors in 2022, including the war in Ukraine and extreme weather events, pushed up wholesale gas prices.

“Recent government actions are focussed on the wholesale gas price for future contracts. We supply customers from our existing wholesale gas contracts, some of which were contracted during 2022.

“EnergyAustralia recognises that some customers may be struggling. Our message is that we’re here to offer support. If any of our customers believe they will be unable to meet their energy costs because of this increase, we can help through payment plans, extensions, a staying-connected guarantee and access to cashflow assistance for small businesses. If you are an EnergyAustralia customer facing difficulty paying your next bill, please get in touch with us as early as possible so we can help,” Mr Brownfield said.

Victorian Gas Variable Market Contracts Increase Key Points

Effective 1 February 2023, Variable Market Contract prices for around 245,000 residential gas customers will rise by an average of 26.7% (around $480 per year, inc. GST), while prices for about 4,000 business gas customers will increase by an average of 35.7%.
EnergyAustralia sources its gas from wholesale markets under contracts, including contracts established in 2022 when wholesale costs increased by up to three times the prior year’s average.
Recent government intervention may lead to lower gas prices for future contracts, and EnergyAustralia is committed to working with governments to help reduce the impact of higher prices on customers.
Other cost increases contributing to the Variable Market Contract increase include the cost of gas distribution networks, government green schemes* and inflation of retail costs.
More cost-effective energy plans with EnergyAustralia may be available for customers.
EnergyAustralia customers experiencing financial difficulty are encouraged to contact us for support. Our dedicated residential EnergyAssist support team can be reached at 133 466, while our small business customers can call the Rapid Business Assist team on 1800 146 749.

* The government green scheme contributing to the Victorian Gas Variable Market Contract price increase is the Victorian State Government’s VEU (Victorian Energy Upgrade) program, previously known as the VEET (Victorian Energy Efficiency Target) scheme.