Why is my Gas Bill So High? 20 Tips to Reduce Your Gas Bill and Save Money

I’ve mentioned in a previous article that I like to prepay my utility bills to avoid bill shock; I divide what my usual bimonthly bill is into a weekly amount and then set up weekly automatic direct debits to my energy provider for that amount. Simple. However, when I received my latest gas bill I gasped in horror… my bill was $530 over my prepaid amounts! I do usually have to top up my bill on occasion over winter to account for the gas ducted heating I tend to flog a bit and my inability to get out of my volcanic hot morning shower, but surely this increase wasn’t from that?

Has the Price of Gas Gone up In Victoria?

A recent St Vincent de Paul Society report states that Victoria gas prices have rocketed 22% over the past two years. The price of gas will only continue to increase under the current Labor government as they have all but abolished gas connections in new builds from 1^st January 2024. While we are also passionate about Australia achieving NetZero carbon emissions by 2050, we’d like to see more transparency surrounding non-gas options available to Victorians; in 2023, 68% of Victoria’s electricity was derived from burning brown coal (which creates more carbon emissions than black coal).

To combat the current cost of living crisis and increasing energy bills, the Albanese government announced the 2024-25 Energy Bill Relief Fund, meaning Australian households will receive a $300 rebate to be paid in quarterly instalments on our electricity bills throughout the year.

David Close, Director of the University of Queensland Gas and Energy Transition Research Centre recently stated that we will experience gas shortages within the next few years over winter, which will in turn increase gas prices again, meaning this $300 relief will be chewed up rapidly.

How do gas shortages and the Victorian new gas ban effect your bill?

How to Read Your Gas Bill in Victoria

In Victoria, your gas bill will come from a chosen retailer, such as Tango, GloBird, Lumo, AGL, Origin, Red Energy or Dodo for example.

Here’s how your gas bill is typically structured:

• Site/Account Details – This shows where the energy is supplied (i.e. your home address). It has a MIRN (Meter Installation Registration Number) showing the connection point number for your property and with some retailers, like Momentum, this section shows the period of time the bill relates to (days in billing period) and the next meter read date. It can be in a Supply Period section from other retailers, like Alinta.
• Meter Details – Your gas meter is either physically read by your gas retailer, or is estimated. Some retailers also provide options for ‘Self meter reading’. It may include the Current Meter Reading amount.
• Energy Units Released – this calculation is based on your current and last reading in energy units called megajoules (MJs).
• Supply Charge – a fixed, daily fee for supplying gas to your property and depends on the tariff you signed up to receive. It includes metering fees and network charges. It has on and off peak charges, depending on your tariff type (single rate tariff vs time of use tariffs). In Victoria, on peak is usually from 3pm – 9pm weekdays. Off-peak hours are usually 9pm – 3pm weekdays and weekends. These can change depending on which retailer you use, and can include peak stages.
• Usage Charge – the cost of the gas consumed at your residence. This is shown in cents-per-unit. Some retailers charge in multiple charges; one price for up to say 12 units of gas per day, and a separate price for more than 12 units per day (slightly lower).
• Account Service Fee – The cost of billing and account servicing from your provider.
• Current Charges/ Total Costs – How much you need to pay, with all available payment options, concession details, previous payments, credits and discounts which may apply if you pay before or on time.

Whilst there are many things we can’t change about the price of gas and the energy transition policies, we can give you some other ideas that may have made your bill drastically increase and also make some suggestions to save money on your next gas bill.

Reasons for Unexpectedly High Gas Bills

Apart from rising gas prices in Victoria, these factors can increase the cost of your gas bill:

• Extreme Weather – If you have gas ducted heating you tend to crank it low in the summer months and high in winter months. You also tend to shower longer in cooler months as mentioned above; its hard to get out!
• Guests – you may not realise, but just a few extra daily showers after you’ve had guests for a week (or your flatmate’s boyfriend who stays most nights!) can make a significant difference in bill costs. There’s usually more laundry too which increases water and electricity bills.
• Appliances – new or faulty gas appliances can impact your gas bill.
• Changes in Your bill – Changes to your billing period, whether an actual or estimated meter reading occurred or any tariff/gas plan benefits expiring will impact your current bill. Is the billing period longer than usual?
• Working from Home – We all love working from home but being home a lot more means using more gas/electricity/water than we would if we left the house for work. School holidays can also increase bills as more people are home throughout the day utilising appliances and heating.
• Estimated Meter Read – If your meter wasn’t accessible for the distributer to read they will give an estimated read. If this read is higher than normal you can submit a self reading.

Tips to Reduce Your Gas Bill and Save Money

Here are some tips you can adopt this winter to try and reduce the cost of your gas bill. Some are simple and immediate and others will be an investment in time and money:

Compare Gas Retailers

1. Use the Victorian Energy Compare Website – I have to admit, this was way more fun when the Victorian Government paid you $250 to do this, but using their independent comparison website, found here, is still a good idea to ensure you’re getting the best deal possible from your current retailer. Just upload your current bill and away you go.

Simple Ways to Reduce Gas Consumption

2. Seal Gaps and Cracks – Ensure there are no drafts by sealing gaps around windows, doors, and other areas where air can escape. We installed door seals at our front door which made a significant difference.
3. Use Heaters Wisely – Set your thermostat to lower temperatures (or even better, turn them off) when you’re asleep or away, and only heat the rooms you use if you have zoned ducted heating. If you don’t have zoned heating, close off unused rooms when using gas ducted heaters. Use portable heaters to heat only the rooms you are using, rather than the whole house.
4. Wear Warm Clothing Indoors – Instead of turning up the heat, wear layers and use blankets to stay warm. Oodie, slippers and a hot chocolate will do the trick! My Gran used to always say if you keep your feet warm and the rest of your body will be warm.
5. Use Heavy Curtains – Heavy, lined curtains and blinds can help keep the heat inside. I open all of my blinds when the sun is shining to use the free warmth to help heat the home and quickly close them all near the end of the day to retain that heat.
6. Reverse Ceiling Fans – Use the reverse setting on ceiling fans to push warm air from the heaters down in the winter.
7. Insulate Your Home – For most new homes, this is standard in order for the builder to achieve the relevant star energy rating of the time. Insulation keeps the heat in during winter and out during summer, reducing the need for heating and cooling, so if you own an older home this should be a consideration. In fact, if you are renovating more than 50% of your home you need to comply with current 7-star energy efficiency ratings.

Efficient Use of Heating Appliances

8. Service Your Heater Regularly – Ensure your gas heater is serviced regularly for efficiency and safety. Gas safety checks need to be conducted in all rental properties every 2 years by a licensed gas fitter.

9. Replace Ageing or Faulty Appliances – This can be difficult if you have an appliance that seemingly works well, but replacing it with a more energy efficient product will significantly save you in energy bills. If you click here you can find and compare energy-efficient appliances with the Australian Government’s Energy Rating Calculator if you are upgrading your current appliance.

10. Set Your Heating to 18-20°C – Each degree higher can increase your heating costs by up to 15%!

Cooking Efficiently

11. Use Your Pots and Pans Wisely – Match pot size to burner size to reduce gas wastage, keep your lids on your pots to retain heat and cook food faster. Replace old pots and pans as warped bottoms take longer to heat up.
12. Use the Oven Efficiently – Cook multiple dishes at once, and avoid opening the oven door frequently. Don’t preheat the oven for things like casseroles and roasted vegetables; this function is usually only necessary for baking breads, cakes etc.

Hot Water Efficiency

13. Launder Your Clothes More Efficiently – Wash your clothes in cold water. Don’t connect your washing machine to the hot tap, and only wash in cold water. It’s better for your clothes and will save on average $80 annually on your bills. Save more money by using a clothesline or clothes horse more than the dryer and only wash with a full load.
14. Take Shorter Showers – Reducing your shower time by just a few minutes can save a significant amount of hot water, reducing the gas required to heat it. Difficult to do in Winter, I get it, but effective.
15. Install a Water-Saving Showerhead – These reduce the amount of hot water used without compromising on pressure. The team at McCarthy Plumbing Group can recommend our favourite water saving showerheads.

Invest in Energy-Saving Plumbing Solutions

16. Install a Solar or Gas Storage Hot Water System– While the initial cost is higher, solar water heaters can significantly reduce your gas consumption. Gas storage hot water systems can also be more efficient than continuous flow systems, depending on your household’s needs.
17. Insulate Hot Water Pipes – Lagging on the pipes surrounding your hot water system can reduce the amount of heat lost as water travels from your hot water service to your taps. It should already be on your hot water service but if not you can purchase pipe insulation from Bunnings.
18. Service your Hot Water Systems – Regular maintenance of your hot water system can ensure it runs efficiently and extends its lifespan. This should ideally be completed every 5 years.
19. Fix Dripping Taps – If your hot water tap or shower is leaking your gas hot water system will be continuously making hot water wasting both energy and water. Our Point Cook Plumbers can help, we service anywhere from Werribee, Altona, Williamstown, Maidstone Caroline Springs and everything in between.
20. Check for Gas Leaks – If you have ticked off most of the above and still had an unexpectedly high gas bill you may have a gas leak. We have assisted many clients in fighting high gas bills by finding leaks on the gas distributer’s side of the meter, making them responsible for the fix and reimbursement through credits applied to their gas account.

We hope some of these tips on saving money on your gas bill were helpful. Many are common-sense, and some may require a bit of investment upfront but they will pay off in the long run, especially seeing as our energy bills continue to increase. Reducing gas consumption in your home is a practical way to make an immediate change to your bill, and we can always help you with installing energy-efficient plumbing solutions at McCarthy Plumbing Group. Give us a call today on 9931 0905 if you’re considering any of these energy-saving adaptations to your home, or require us to check out a potential gas leak or dripping tap.