Gas Suppliers Western Australia

Looking to set up a Gas Connection at a new property?

Trying to get the essentials sorted for that new property you are moving into soon? A gas connection to get the grill going or getting a hot shower, is the first step. You can make your property ready to live in and furnished with all the necessary comforts, by working with Electricity Monster. Our extensive experience of the WA gas market allows us to deal with most of the common problems you might face. We take a careful look at your requirements by analysing the availability of gas in your location, the cost-effectiveness of the plans available and the discount benefits offered by gas retailers. Currently, gas is available in the most populated regions of WA, including Perth, Geraldton, Gingin, Mullewa, Kalgoorlie-Boulder, Busselton, Carnamah and Albany.

Just let us know what gas requirements your property goes through, and we will get you the most attractive rates at our disposal, from our partner suppliers. Our commitments to our customers have allowed us to satisfyingly serve over 35,000 homes or businesses throughout Australia looking for a solution to their energy needs. Follow in their footsteps and choose Electricity Monster today to connect your gas!

For Australians combating the enormous increase in energy prices over the last few years, the service Electricity Monster provides is for the fight against energy poverty. By only starting a conversation with us, we could save your home or business hundreds of dollars per annum.

The WA Gas Crisis

WA is the most gas-hungry state in Australia, getting over half of its primary energy needs and nearly half of its electricity from natural gas. Australia in 2017 was being affected by a gas crisis that is very unfortunate for Aussie consumers, and perhaps even comical. The gas crisis is regrettable as regular Australians are seeing the income they have evaporating fast on gas bills.

The only amusing part of this crisis is that this gas crisis stems from the gross mismanagement of resources in our nation. It can only be termed as a comical situation when Australia, the country that is poised to be the largest exporter of natural gas by the end of this decade, is now looking to import gas from other nations – sometimes even from countries we have sold gas to in the first place. There is, however, nothing funny about the gas prices WA citizens have had to pay as a result of the ignorance of ruling governments. Australia, has spent over $200 billion in the last ten years to become the go-to exporter of gas for the energy-hungry Chinese, Korean & Japanese economies. Our country now finds itself short of gas and having to stand with its tail between its legs. The embarrassment is similar to if Russia ran out of Vodka or New Zealand had to import sheep.

As gas exports became an integral part of Australia’s income from abroad, the local gas supply was drained and funnelled overseas to Asian markets. This redirection of supply caused the local supply to be under-capacity and a situation where, over the last few years itself, wholesale gas prices have nearly tripled. The slumber of the government finally broke when the energy market regulatory body came out with a scathing report that alarmed Australians over a quickly approaching shortfall in gas supply. It was only under the threat of cutting exports that the federal government was able to put pressure on retailers to increase domestic supply. WA residents benefit from a state policy that compulsorily reserves 15% of gas produced for domestic use. The success is short-lived, however, with several analysts forecasting a situation where demand for gas in Australia overtakes supply, leading to enormous price rises.

What’s causing WA to be in a Gas Crisis?

Gas for small users, who do not consume more than a certain threshold in a year, is priced under regulation set by the WA government. Gas providers have to work within the rules when charging consumers. Although gas prices are regulated in WA, retailers can compete to offer the best levels of service and attractive discounts. A look at the prices that have been currently set by gas suppliers in WA proves that they are charging either at or very close to, the maximum charge allowed. For large users of gas like medium and large-sized businesses, they can negotiate rates directly with gas providers. The table below shows the government-set maximum prices for gas in three regions in WA – The Mid & South-West, the Kalgoorlie-Boulder and Albany zones.

For electricity, you cannot choose an electricity retailer for your home in WA unless you spend over $15,300 a year on power or use more than 50,000 kWh a year. The retail gas market in WA, however, is open to competition, although the price may be regulated in the regions mentioned above. Outside of the regions mentioned in the table above, gas retailers are free to set a price that they deem fit. The competition in the deregulated gas market has been heating up recently and retailers are battling to sign up more households by offering attractive discounts. Get in touch with Electricity Monster on 1300 584 872 and see if there are competitive rates we can offer your home or business through our partner gas retailers.

Carefully considering your gas retailer in WA is essential, considering nearly 40% of an average WA household’s bill is retailer charges. Although Perth is the most gas-connected state capital city in Australia, only a quarter of regional WA has access to mains gas that comes from the off-shore gas sites of the Bonaparte, Browse and Carnarvon basins. Despite making competition open in the market since 2004, it wasn’t until 2013 that actual competition sparked in the market. Any newcomers in the market have to contend with regulated prices and little scope for gaining a market share.

What do average WA residents expect?

Residents in WA enjoy a lower cost per unit of gas than East Coast residents. This situation, however, is expected to be short-lived. Gas prices are currently low because the competition among gas retailers is keeping rates low also aided by a sufficient supply of gas in WA. AEMO has modelled a scenario where they expect domestic gas supply in WA to fall after 2020 when contracts for large gas basins expire. When contracts get renegotiated, there may be a tendency to be attracted by the overseas market for LNG (Liquefied Natural Gas) and ignore the domestic market. After 2022, the situation is expected to worsen as the reserves of multiple gas basins fall. With 97% of all conventional gas reserves owned by export companies, prices in WA can change on the whims of these exporters, despite the 15% reservation quota.

LNG projects that are currently in operation in WA are not free of complications. A mega-project from Chevron Corp, called the Gorgon project, has seen costs spiral out of control, creating the most expensive exploration project in history. Another LNG project by Shell, which envisions the most massive floating structure on the planet, has also seen costs rapidly increase. In such an investment climate, exploration projects for gas are expected to go down. Exploration in WA is touching a 27 year-low, with the number of wells drilled in 2017 comparable to 1990 levels. Bans from the WA government on the controversial practice of “fracking” is expected to keep exploration low. A lack of new reserves combined with falling current reserves can only spell danger for the wallets of Western Australians. Fracking is also under a permanent ban in Victoria and the NT because of environmental concerns. To quench the thirst of the East Coast market, the gas produced in WA is slated to be redirected to that market, leaving WA residents short.

ATCO Gas Australia, which operates all the gas mains in WA has said it will invest about $867 million between 2020-24, in anticipation of 83,000 new customers joining the network during that same period. In light of this projected increase in demand and decrease in supply, the probable outcome for average Australians is higher prices. With government policy uncertainty lingering, regular Australians have no idea over how much gas is planned. An idea put forward by the WA Government is to look closely at a renewable hydrogen industry in WA, that would be environmentally sustainable. Striking the right balance would mean a world of change for Australians struggling with exploding prices.