VIC gas bills may drop after AER ruling

Rising gas prices may be offset by a $1.1 billion cut in spending to Victoria's gas network, which equates to a 26 per cent reduction in expenditure.

The Australian Energy Regulator (AER), an arm of the Australian Consumer and Competition Commission (ACCC), decided on the move after a long review process, which will hopefully reduce the power bills consumers are facing.

AER chairman Andrew Reeves explained that should gas suppliers pass on the changes, it could mean lower gas prices for consumers.

A key reason behind the reform is that with a reduction in interest rates, comes an alteration to the rate of return.

"Over the past couple of years, interest rates have fallen by around two per cent," Mr Reeves said.

"This means that businesses like the Victorian gas businesses can now source funding at lower rates in previous years. This decision passes the benefit of those lower funding costs back to customers."

If you are looking for a better deal on your gas, talk to a comparison and switching service. They will be able to analyse the market and your needs and source the best supplier for you and your family.

Posted by Callum Fleming