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AoG Reticulated Gas – Renewal of Contract

16 June 2017

The All-of-Government (AoG) Reticulated Gas contract’s initial term comes to an end in September 2017. The Utilities Centre of Expertise (CoE) has negotiated renewal of the contract for one year (to September 2018) so participating agencies can continue to benefit from the contract.

As a result of the renewal negotiations, we are pleased to advise there will be a significant price decrease from 1 October 2017. Pricing details are available to eligible agencies through the Utilities CoE.

Other aspects of pricing have also been reviewed and mostly remain unchanged. However, please note that the carbon price (from the Emissions Trading Scheme), which has increased in recent years, will again increase slightly.

The reduction in the base gas price is great news. We expect that a typical small agency (such as a school) will, after accounting for the increased carbon price, see a reduction in their gas bills from 1 October 2017 of approximately eight per cent.

Larger agencies will see a reduction of 12 per cent or more, due to fixed network charges forming a lower proportion of their gas bill.

We are pleased that all participating agencies will receive the same great pricing. The existing pricing tiers (small users/large users) receive slightly different prices, which will merge to one price for all from 1 October. While the existing differential is small, the establishment of a single price for all agencies is a welcome recognition of the buying power that smaller agencies can achieve through AoG.

Agencies that have looked at the AoG Reticulated Gas contract in the past but have not yet joined us may wish to reconsider the contract as a result of the reduced pricing.

As this is the only renewal available for the contract, we are now turning our attention to returning to market for a new AoG gas solution from October 2018. The combined gas demand of participating agencies (about two petajoules) is significant business for suppliers and we look forward to a strong, competitive response from the market. We will be in touch with developments on that front.

If you have any questions, please feel free to contact the CoE by email.

Last updated 16 June 2017