Bigger gas bills on the way

Starting on October 1, Wanganui region customers will be paying an extra $1.65 to $3 a week for gas, Wanganui Gas commercial manager Jim Raybould says.
There were about 9500 gas customers in Wanganui, Marton and Bulls, he said. The gas used in the region all came from a land well at Kapuni, in Taranaki.
Households using gas just for heating used about 4000kWh per year, and would find the annual cost increased from about $450 to about $580, or $2.50 a week.
Households using gas for heating, hot water and cooking used about 8500kWh a year. Their annual cost would increase from about $600 to about $725, or $2.40 a week.
Grey Power president Graham Adams said, in a statement, that he was astounded at the increases, which could be as much as 50 percent for some customers.
But Mr Raybould said the prices had been so low for so long that a large percentage increase didn't necessarily translate into a much bigger bill.
"Although $150 to $200 a year is not to be sneezed at, it's less than the price of a Chronicle per day."
Mr Adams questioned why the price increases were needed.
"One has to ask whether these price hikes are entirely product related or are they due in part to the higher dividend being demanded by the majority shareholder, Wanganui District Council."
Mr Raybould listed a number of causes for the price increases, but these did not include the demand for a high dividend.
They were:
+ the price of gas had at least doubled,
+ the price of transporting gas from Kapuni to Wanganui through the Natural Gas Corporation pipeline had increased 52 percent in the last two years,
+ the price of transporting gas through the network of pipes to people's houses had increased 7 percent.
He said other gas companies would be faced with the same price increases within the next two years, if they had not been already.
The fact that Taranaki's Maui gas field was running out had raised prices, but Mr Raybould said there was still "more than enough gas to meet our market" and new fields were being explored.
The price of electricity bought through Wanganui Gas would also increase on October 1, by about 45 cents a week for average customers.
This was because:
+ the wholesale price of electricity had increased. Powerco had changed the way it charged for the distribution of electricity through its lines.
+ Wanganui Gas would be reviewing its customers' pricing options, to make sure they were getting the best possible deal.
In the short to medium term customers could expect gas and electricity prices to continue to rise, Mr Raybould said.
No predictions for the long term could be made.