Is the national residential gas market another example of price gouging?
Considering the trend on wholesale prices over the previous 24 months is down, down, prices are down! The AEMO has been highlighting increasing levels of domestic supply and falls in wholesale pricing of 40% between Q4 2022 and Q4 2023.
One example:
Price increases for reticulated residential supply - natural gas Brisbane from May 2024.
IE The per MJ energy cost is set to rise just short of 10%.
One would expect there is a substantial retail margin and buffer in current residential plans.
The other component - the daily supply charge will also increase approx 12.5%. More than twice the average CPI.
Looking back 24 months to Q2 2022, the advised supply price increase is nearly 25%, while the MJ energy cost increase will be close to 50%.
Considering average NG wholesale prices in 2022 were at a peak of more than $15/GJ it looks like the coming price hikes are just one more example of enterprise price gouging consumers.
