Adelaide Gas Bills

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Adelaide Gas Bills

A gas bill is just one expense that a household doesn’t see coming. Natural gas is a basic power source which is why it is important to find the best deal for your household. The good news is that the natural gas supply business has become competitive and it is easier for customers to find the prices that fit them. However, gas pricing has become unreliable, unlike other bills gas retailers can charge as they want to supply gas to any household. If you are considering finding the best deals there are several factors contributing to the amount you pay.

Prices of gas depend on how much gas per household is used. Supply charges account for infrastructure repair and upgrades and the cost to supply gas to your home. The charges also depend on the type of contract you chose and the retailer. This article will give you an elaborate breakdown of the average costs of gas in Adelaide and the factors that contribute to certain billing costs. First, it is important to understand a few basics that affect the price of gas.

Distribution Network of Gas in Adelaide

The Australian gas networks’ distribution covers Adelaide and its surroundings. The gas network is connected to transmission pipelines of natural gas transferring gas from the transmission pipes to distribution networks. The city gas station meters and reduces the pressure of the natural gas entering your property. At the moment it enters, your meter starts recording your gas consumption.

Gas Supply

Almost 60% of natural gas is used to generate electricity and the rest is distributed among households via the Australian gas network. Gas producers sell gas directly at wholesale prices to retailers under private contracts.

Gas Transmission

Delivering gas to Adelaide requires six transmission pipelines. Adelaide gas comes from several sources including Canstar Blue.

What Makes Up Gas Prices in Adelaide?

The amount you pay after using gas consists of costs the retailer pays to provide your home with gas. The location you are in is also a great determinant of gas prices. These are:

  • The transmission cost is associated with the maintenance of the pipelines.
  • Distribution costs to your household are associated with the maintenance of infrastructure in the distribution network.
  • The amount the retailers pay for the extraction and production
  • The retail costs include the cost of connecting customers, billing, and managing their accounts.

Some suppliers also charge:

  • Disconnection and reconnection fees for late payment
  • Late payment fees,
  • Processing fees for new customers
  • Fees for customers using credit card payments
  • New connection fee for new customers
  • If you are moving out they charge you extra for disconnection

Gas Retailers

Retailers sell gas to homeowners and transport it to them at a price. The gas price every household receives includes, regulated charges the retailers pay for transmission and distribution companies. As a customer, you are free to choose the retailer and contract type and also compare prices that fit you best. It is important as a customer to avoid contracts that are not flexible.

There are two types of contracts you can choose from:

  • Standard contract – This is a government-regulated contract it does not includes fees for the contract period or exit.
  • Market contract – provides fixed rates and contracts with conditions. They are cheaper than standard contracts, provided you meet all requirements as per the offer. Customers on this contract might have to be keen on price changes and periods where there are benefits.

The average gas bills in Adelaide are determined by many variables. For instance, households with higher gas usage may benefit from contracts that have lower overall pricing. How far you are from the pipelines also is another factor they consider. An alternative to lowering your gas pricing can be switching to electricity for some of your household appliances that have higher consumption such as heaters. You can also switch to market offers which is what most customers do.

The Canstar Blue research estimates the average gas bill in Adelaide to be 892 dollars annually. Gas in Adelaide is charged per megajoule so customers looking to buy gas at cheaper prices should compare deals around the market. The gas acts, regulations, and, standards govern the gas industry. Here, network charges are set as well as monitoring and enforcing compliance in the energy market. The cost of gas in Adelaide is broken down into three steps by the gas acts in the gas industry. The cost differs from the distributor to the consumer:

  • Wholesale cost – this is the cost that covers the purchase of gas from its production and supply to retailers.
  • Network cost includes the cost of infrastructure delivering gas to your home. These are the people who own and operate the pipelines. They inspect, test, upgrade, repair, and maintain the distribution network.
  • Retail cost includes the supply of gas from the retailer to your home. The charges are usage and supply charges however retailers can charge you differently depending on other factors.

Gas prices change over time therefore, it is important to be on top of the market to avoid overpaying. Another tip is that most customers who are looking for cheaper prices of gas can combine multiple services from one company.

Another tip for gas customers can be to compare the prices of suppliers and also explore available government concessions for assistance with gas bills to avoid paying a lot of money for gas. How much you can save by switching gas providers in Adelaide depends on how vast you engage in the market. It is also important to be aware that gas rates are charged in blocks. Here, you can calculate the cost of your usage in daily charges to see what suits your household best. The Australian energy regulator data shows that average households could save up to 211 dollars by just switching to the cheapest market offer. However, most households are on market offers and there’s no guarantee it’s a good offer. What is not guaranteed is not engaging in the market for better deals. Also make sure to fully understand how much the energy will cost to run the whole system.


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