Gas prices will rise a whopping 23 per cent next week, adding as much as $136 a year to household bills, after the State Government last night allowed financially strapped Alinta to increase tariffs.
Small businesses also face a price rise.
The rise, which was blamed partly on the financial impact on Alinta from last year's Varanus Island explosion, comes on top of big increases in water and electricity charges announced in the State Budget last month, which the WA Council of Social Service has already warned could drive families on low incomes into poverty.
Household electricity bills are forecast to soar by between $200 and $440 next year and consumers will have to pay at least $60 more over the same period in water and sewerage charges.
WACOSS chief executive Sue Ash said last night that she was "stunned" by the gas price increase.
"We are really concerned because we felt that people were already going to struggle with what we expected would be a 9 per cent increase," she said.
This week, WACOSS released a report estimating the average household faced a 32 per cent rise in gas, electricity and water bills over the next five years, or nearly $1000 a year more on essential services.
On top of rising unemployment and mortgage stress, they said this would make it difficult for many ?households to pay their bills.
Although privately owned, Alinta requires Government approval to lift regulated gas tariffs.
Alinta general manager retail sales Ralph Bates said the changes to tariffs were likely to see a typical household's gas bill increase by $1.70 a week.
Energy Minister Peter Collier said that last year's gas price rise — up to $83 a year for a big household — was not enough to cover the cost of supply.
"As a result, this Government has been left with the difficult decision of accepting Alinta's proposal for increases to its charges," he said. "We are aware of the financial pressure householders and businesses are already under and to this end, Alinta (and the Government) offers assistance to customers in hardship."
The Government increased the Hardship Utilities Grant Scheme by $12.6 million in the Budget because of its concerns about the impact of ?utility price rises on low and fixed-income households.
Shadow energy minister Kate Doust said the rise was another impost on families already struggling to deal with higher charges in the Budget.
Alinta was bought late in 2007 by a group consisting of Singapore Power International, Babcock and Brown Infrastructure and Babcock and Brown Power.
But the purchase was heavily funded by debt and amid the global financial crisis, Babcock and Brown has been forced to offload assets.
The company has refused to comment on potential bidders for Alinta, but the sale process is understood to be continuing.
Alinta said it provided assistance with payments to more than 68,000 customers last financial year. Customers can call Alinta on 13 13 58 to discuss a payment arrangement or payment extension.
PETER KERR
