Victorian Gas Customers Achieve New Benefits

01 Jun 2001Archived News Climate Change Matters

Many customers with operations in Victoria have benefited from new opportunities in recent times. Even customers that have been on contract for a year are finding a more competitive market place is providing better prices and contract conditions.

 

A proposal for the introduction of retail contestability to remaining gas market customers is being discussed between the Office of the Regulator-General (ORG), VENCorp, gas retailers and customer representatives. At a recent conference it was announced that the government expected all customers >5TJ will be contestable from 1st September 2001 and all small business customers and homes are expected to be contestable from mid 2002. The government is expected to make an official statement in March 2001.

Recently we have conducted many gas tenders for large and small customers. We have found that retailers who were initially conservative in their pricing strategies are now able to actively compete for customers and more importantly, have been able to offer pricing that better manages the potential risks that customers can face.

Some of the key areas where improvements can be made is related to the contract terms and conditions. Issues such as MDQ restrictions, usage penalties and uplift fees all need to be reviewed carefully to enable increased gas consumption as business grows and to avoid unnecessary additional costs.

Also, those that can manage their daily capacity are becoming valuable to retailers and opportunities to trade that capacity can be capitalised upon.

With these changes, customers must remember that the contract is a negotiable item.

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