Gas
Industry Overview
Full Retail Competition
The Policy and Regulatory Framework
Customer Rights and Responsibilities
Retailer Contacts
Industry Overview
There are four steps in supplying gas to a Victorian gas customer
- Production: the majority of gas is supplied to Victorian consumers by the BHP Billiton/Esso consortium from their Longford processing plant. Other gas is supplied from the
- Transmission: gas is transmitted from the processing plant at Longford to the outskirts of
- Distribution: three companies transport gas to consumers (TRUenergy Networks, Envestra, Multinet).
- Retail: retail companies sell gas directly to customers. Since the introduction of retail competition in October 2002, all Victorians can choose their gas retailer.
For customers, your main relationships will be with the retailer that supplies you gas.
Full Retail Competition
Since October 2002, all Victorian gas consumers have been able to choose from which company to buy their gas.
That means you can now choose to change your energy company if you think another deal better suits your usage. Or if you are satisfied with the prices, terms and conditions of your current gas contract, you don't have to do anything.
There are two possible ways you may end up changing retailers:
- Moving house. If you move into a new home (or change business address) and the gas retailer is different to the retailer you had previously, then you have effectively 'changed' retailers, even if you didn't intend to. In this instance you have the option to
- Stay with your 'new' gas retailer
- Change back to the 'old' retailer you were with before the move.
- Stay with your 'new' gas retailer
- You make the choice to change. If you choose to change gas retailers, you will be asked to enter a market contract, which may offer a better energy deal for your household - that could be lower prices, more convenient billing or other alternatives.
Or if you move into a new home or change your business address, the local retailer may be different to your previous retailer. In this instance you can choose any company to supply your energy.
The Energy and Water Ombudsman (Victoria) has produced a helpful brochure Changing Your Electricity or Gas Retailer (pdf) that contains a summary of your rights and what you need to consider when signing an energy contract.
You should spend some time researching and comparing various offers, to ensure the terms and conditions suit the way your household uses energy. Make sure you have a good idea of what your current usage is, but think too about how that might change - for example, if you were suddenly going to spend more time at home during the day looking after children or on retirement. The Essential Services Commission (ESC) has an online energy comparator which helps consumers who have been approached with an energy offer to compare that new offer with their current arrangements.
The Policy and Regulatory Framework
The Commonwealth and Victorian governments share responsibility for policy development and regulation of the gas sector.
A substantial reform process is now occurring - under the auspices of the Council of Australian Governments (CoAG). It aims to improve the legislative framework for energy, in order to achieve an efficient, secure and competitive national energy market. More information on this fast-moving process and the latest news can be found at the website for the Ministerial Council on Energy.
Currently the Australian Competition and Consumer Commission (ACCC) regulates transmission functions, and considers and approves access arrangements under the National Third Party Access Code for Natural Gas Pipeline Systems.
In
The key agency advising the Victorian Government on energy policy is the Energy and Security Division in the Department of Primary Industries (DPI). Its role is, 'To work with the state's gas and electricity industries to ensure that Victorians enjoy a safe, secure, affordable and sustainable energy supply'.
Customer Rights and Responsibilities
Link to consumer issues page
Your bill
Each customer's bill typically comprises the following charges:
- Supply charges, which relate to the use of the transmission and distribution networks to deliver energy to you
- Consumption charge, which is the amount you pay for the gas you use. The amount your retailer charges you for you gas includes retail costs, such as billing and customer service and a profit margin.
There are a number of regulations relating to the sale and marketing of gas. Of key relevance to residential small business users is the Energy Retail Code (pdf). All codes relevant to gas can be accessed on the ESC website.
Concessions
The Department of Human Services (DHS) Concessions Unit administers concessions and grant schemes for eligible gas customers. If you hold a pensioner concession card (PCC), health care card (HCC) or a GOLD card (from Department of Veterans' Affairs) you are entitled to the following assistance programs:
- Winter Energy Concession: 17.5% discount off three mains gas or two mains electricity bills issued between mid-May and mid-November.
- Non-Mains Winter Energy: a rebate of $95 for people who use $120 or more of LPG
The Concessions Unit also administers two grant schemes to assist concession cardholders:
- Utility Relief Grant Scheme: once-off assistance to pay bills due to a temporary financial crisis.
- Emergency Capital Grant: a once-off grant to repair or replace appliances for households in an emergency situation who otherwise can not afford to do so.
See the DHS website for more information.
See the Department of Human Services (DHS) website for more details, or call DHS's freecall concession information line: 1800 133 014, for rebate details.
Retailer contacts
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AGL Victoria Pty Ltd |
