EnergyAustralia confirms prices for nearly a quarter of million households and businesses in Victoria to rise nearly 30 per cent.
Major gas suppliers’ refusal to offer domestic manufacturers contracts while they study the federal government’s price cap plan is preventing lower international prices filtering through to lower domestic prices, Credit Suisse energy analyst Saul Kavonic says.
Mr Kavonic said that in general, domestic contract prices from producers had been materially below so-called netback prices on average last year, with netback pricing only setting the price for part of the year. They soared after the Russian invasion of Ukraine, but retreated late last year as it became clear that less gas would be required in Europe thanks to an unusually warm winter.
While many businesses and households did not immediately feel the pain of the higher gas prices as they were on fixed contracts, this is now flowing through in new contracts and will drive the next default market offer – the annual price that retailers can charge customers for electricity and gas that is determined by the Australian Energy Regulator.
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