Increased gas rates from 1 August

[WillGee]

AGL (NSW) gas rates are going up again, from 1 August. Increases between 7.4-13%, including an 11.5% increase in the Supply Charge.

It will have been 6 months since the last increase (from 1 Feb.), when the increase was 12.3% for every band. But the Supply Charge was not increased in Feb.

Is the rise in Supply Charge next month justified? I get that gas is more expensive, but the pipes, etc. are the same as before. Why the 11.5% rise?

(Please: no "many factors" answers. Kindly provide credible justification for the increase in Supply Charge.)

[-Olgi-]

Hi @WillGee,

Thanks for your question regarding increase in Supply Charge and cost of gas supply. Energy pricing is based on network costs, wholesale market costs. retailers costs and Government and regulatory costs. Increase in either of those, will mean that your rates including supply charge will go up.

Network costs are costs that distributor incurs to send gas to homes and AGL pays distributors for the cost of delivering this energy to customer homes.

The wholesale market cost is the amount AGL pays to buy gas to supply to our customers. These prices fluctuate depending on availability and demand.

Retailer costs are our indirect costs including arranging the supply of energy to customer homes, complying with regulation and providing customer service.

There are also a number of federal and state government schemes that can add to the cost of energy.

Unfortunately during this review, the energy rates including your daily Supply charge has increased. I hope this helps to better understand how energy rates are determined.

Kind Regards,

-Olgi-

[WillGee]

Dear Olgi/AGL,

Thanks for your reply. I think you overlooked my request: "(Please: no "many factors" answers. Kindly provide credible justification for the increase in Supply Charge.)"

You gave no actual justification for the Supply Charge increase, but just appealed to "many factors"!

So to reframe my question, with the request that it be addressed specifically: Precisely which factors and by how much, contributed to the substantial increase in the Supply Charge from August 1?

Or did AGL just increase the Supply Charge "because they could," then hid behind the "many factors" explanation?

[Bargle]

I agree with WILLGEE. We deserve a detailed breakdown of the "many factors". Otherwise, it looks like AGL is treating its customers with contempt or trying to hide something; as if we would not understand what those "many factors" are.  On another point, AGL reckons I can save money by switching to a Value Saver plan for gas. This is based on an average gas usage, but when I actually do the calculations on past bills, I find that I would be paying more! I would like to do the calculations using the increased prices and although I have been notified as to what these are for my current plan, nowhere can I find the new rates for the Value Saver Plan. How about showing the new rates on your website. And as for that message bot that pops up on the bottom right hand corner of my screen, it is useless. Get rid of it.

[_Mark_]

Hi @WillGee, you can find more about these factors as well as what events have caused extra volatility in the market to help provide more of an explanation here as well as links to further detailing articles and other articles such as what we can offer to help reduce your energy costs as much as possible. 

@Bargle Plan rates can be found on our website here, scroll down to where you can enter your address again and you will be able to find what the rates would be for the plans we currently offer.

Thanks,
Mark.

[WillGee]

Thanks for your message, Mark.

I've checked the links that you kindly provided, but have to report that all I could see was the "many factors" justification for the coming 11.5% increase in the Supply Charge.

What I and other consumers would like to see is a breakdown of the actual size of the cost increase for each of the "many factors," and the weighting of these upon the Supply Charge. For example, how much extra - in %age - are you paying to the gas supplier? What %age increase has occurred in the other factors you mention? How do these actual numbers justify a hike of 11.9%?

Only by providing the numbers will you satisfy other customers and myself that AGL is not taking the opportunity of the increased wholesale prices to hide a price-gouge on Supply Charge.

[Bargle]

Thanks Mark. I had looked at those rates earlier and I assumed they are the current rates, not the new ones applying from 1 August. However, I now realise that my current plan is no longer offered so I've made the switch recommended by AGL. 

[Ihab]

The cost of living is skyrocketing and now AGL will increase the Gas rate!! This is completely rejected by all people. No price increase on Gas happened globally, so why AGL is increasing? People are suffering from the cost of living, especially food!! If AGL didn't freeze this increase, I will move to another energy provider soon.

Thanks

Ihab