The Problem: The impact on your household budget
Household gas bills are projected to triple and more over the years ahead as a result of linking the Australia to the global gas market.
Australian households on the east coast have already been hit with large increases. NSW and Victoria have been hit with a 20 per cent increase, which took effect in the middle of the year - taking the average household gas bill from $901 per year to $1033 for 2014/15.
Victorian households are particularly susceptible to price rises because of the larger average gas use per household, due mainly to extra heating costs. If wholesale prices reach $10 per gigajoule, as projected, it will add some $330 to the annual gas bill of an average Victorian household, or $540 for a larger family home.
Although prices vary from state to state based on market differences, the availably of pipeline capacity, and state consumer laws, the fact that gas prices are about to spike dramatically across the nation is not in question.
All leading economists and market experts, as well as the Federal Industry Minister Ian Macfarlane, have openly predicted gas prices are set to rise markedly in coming years.