Acquisition 'not likely' to affect gas price trend
The proposed acquisition of Bow Energy by Arrow Energy Holdings has been given the green light by the Australian Competition and Consumer Commission, stating it is unlikely to lead to a rise in gas prices.
According to commission chairman Rod Sims, concerns had been raised by domestic gas consumers that planned liquefied natural gas (LNG) developments at Gladstone - as well as decreased competition in the national market - could result in higher gas prices.
But Sims said the ACCC has concluded that this would likely not be the case as the result of Arrow Energy Holdings' acquisition.
"The ACCC determined that the broader structural impact of the planned LNG developments on the price of gas in southern Queensland and eastern Australia was likely to continue with or without Arrow's proposed acquisition of Bow Energy," he said.
Instead, wholesale gas prices are increasingly becoming based on international benchmarks, he said.
In light of consumer concerns about gas prices, it may be wise to shop around and ensure you are getting the best possible deal.
Speaking to a switching service is a great way to take the hassle out of this process - they can do the legwork for you and ensure that you are getting the best gas prices available in your area.
Posted by Callum Fleming