GAS supply issues in Horsham have made their way to the country’s competition regulator and consumer law group.
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Member for Lowan Emma Kealy has reported the state government to the Australian Competition and Consumer Commission for promoting false and misleading information to Horsham residents on its Energy Compare website.
Ms Kealy has called on the government to explain what action it is taking to break the gas supply monopoly in the Wimmera.
She has requested the commission investigate any evidence of price gouging by the area’s sole gas retailer EnergyAustralia, and the marketing practices of other gas supply companies.
“It is unacceptable that Labor’s own website recommends four separate gas retailers for Horsham,” she said. “Labor has done absolutely nothing to address this situation despite their commitment four years ago to monitor the development of competition in the Wimmera.
“I am also extremely concerned that EnergyAustralia is taking advantage of their supply monopoly since the order that constrained gas tariff increases to no more than CPI expired in 2013.
“This is pushing up gas bills and hitting the back pockets of businesses and people living in Horsham, with a 75-per-cent increase in gas prices since the order expired.”
Consumer Action Law Centre energy policy officer Jake Lilley said there seemed to be a lack of transparent information easily available to consumers. The group has called on the government to re-regulate gas prices.
“It shows the flaw in letting energy companies set their own pricing,” he said.
“Consumer Action is campaigning for the government to re-regulate gas and electricity prices by introducing a Basic Service Offer.
“It would be a fair price, set by an independent regulator, that every energy retailer would be obliged to offer.
“Left to their own devices, energy retailers have been ripping off too many Victorians. Households would be able to be confident that they were not being gouged with a Basic Service Offer.”
Mr Lilley said competition was not necessarily the best solution.
“The commission recently found that competition is failing to deliver good outcomes to consumers in the National Energy Market, and instead recommended re-regulation to stop gouging where people can only access one electricity or gas offer,” he said.
An EnergyAustralia spokesperson said the company understood customers might struggle to meet their energy bills.
“We encourage anyone having difficulty to contact us before the due date so we can set up a plan that provides flexibility in how and when payments are made,” they said.
The spokesperson said Horsham was an open market and other energy retailers could provide gas but had decided not to. They said EnergyAustralia provided gas to household customers at “roughly the cost of supply”.
However Victorian gas prices have increased about 13.5 per cent in the past year because big coal-fired power stations have closed, increasing demand for replacement gas-fired generation.
EnergyAustralia has supplied the Wimmera for about 20 years. From 1999-2013 prices were capped to annual CPI increases under a government-imposed Wimmera and Colac Gas Supply Tariff Order.
It ended with a long-term view by government to encourage more retail competition in the region.