NSW regulated natural gas prices are changing on 1 July 2017
If you’re an Origin NSW natural gas customer on a regulated contract connected to the Australia Gas Networks or Central Ranges distribution areas, this FAQ is for you.
You may have already received or can expect to receive some information from the NSW government about your gas prices changing. We also wanted to let you know what’s changing.
As a customer on a regulated gas price, the process for setting your gas price is changing.
Until 30 June 2017, the NSW Independent Pricing and Regulatory Tribunal (IPART) sets your gas charges. But from 1 July 2017 gas prices will be deregulated and we’ll need to move you onto new transitional prices – we’ve agreed these with the NSW government.
You’ll receive a letter from us around 1 July detailing the transitional prices, and you’ll be able to compare what you pay now to the new prices. We’ll also include this information on your first bill after 1 July.
Read our FAQ to learn more about what these changes might mean for you.
What is changing?
Until 30 June 2017 the NSW pricing regulator called IPART – the Independent Pricing and Regulatory Tribunal – sets your natural gas prices and this process results in what’s known as the regulated gas price. This process is changing.
On 1 July 2017 the process for setting your gas price will change, and IPART wil no longer set your gas price.
This also means regulated natural gas contracts are no longer available, and transitional charges will now apply to customers who were on regulated contracts on 30 June 2017.
It also means that standard retail contracts and market contracts still continue to be offered for natural gas supply.
Origin’s regulated contract customers will become standard retail contract customers with special ‘transitional charges’ until 30 June 2019 for residential customers and for small business customers until 30 June 2018.
When do the new prices apply, for how long and how do they affect me?
Transitional prices apply from 1 July 2017.
It is a two year price agreement for residential customers ending on 30 June 2019, and one year for small businesses, ending on 30 June 2018.
If you’re an Origin customer in the Australia Gas Networks and Central Ranges distribution zones on a regulated gas contract, then these prices affect you and from 1 July 2017 you are a transitional standard retail contract customer with transitional charges.
Transitional charges are currently the same as Origin Supply charges but for residential customers may differ in the future. You should consider what’s best for you before switching away from a transitional contract as you cannot switch back. To find out more, see our question below ‘Do I need to do anything during the transition period?’
Residential customers can give us a call on 13 24 61, and our business customers can call our Business Centre on 1300 661 544.
What’s a regulated contract?
A NSW regulated natural gas contract is one of the gas supply agreements that Origin offered to residential and small business customers in the Australia Gas Networks and Central Ranges distribution areas up until 30 June 2017.
The independent pricing regulator (IPART) set regulated natural gas contract charges for customers on these agreements, and other terms and conditions were set under the National Energy Retail Law.
When these regulated contracts were introduced, Origin’s existing standard form natural gas contract customers in the Australia gas Networks and Central Ranges distribution areas became regulated contract customers under the regulations.
What happens at the end of the transitional period?
The transitional period agreed with the NSW government ends for residential customers on 30 June 2019 and for small business customers on 30 June 2018. After this, transitional standard retail contract customers will become standard retail contract customers and be charged our standard retail contract charges.
Do I need to do anything during the transition period?
If you’re OK with the transitional prices, then you don’t need to do anything.
If you’re a residential customer, you’ll stay on these prices for two years (however, we may need to update these prices from time to time to reflect increases in CPI and external costs including network and green scheme costs.)
If you’re a small business customer then you’ll stay on these prices for one year.
Or, if you’d like to review your account and change to another plan
But remember, if you change plans you won’t be able to move back onto the transitional charges.
Who can I contact if I have any questions?
If you’re considering moving or switching to another plan then feel free to get in touch – we'll be happy to help work out what's best for you.