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Jose Chavez

High Gas Bill Reasons: How to Identify and Reduce Costs



So, your gas bill landed with a thud and not a good one. It's way higher than expected, and you're wondering why?


You’re not alone. Let's explore common gas bill issues and ways to tackle those costs.


I recently faced a bill $500 over my usual spend. After this shock, I researched reasons for high gas bills to lower my expenses. High gas bills can feel overwhelming, but a systematic approach brings clarity.



Understanding Your Gas Bill


Before we explore reasons for high energy bills, let’s decode your gas bill—it’s simpler than it seems. Start by checking your retailer and understanding peak and off-peak charges.


If peak pricing applies, try running gas appliances during off-peak times to reduce costs. Here’s what to look for:


  • Site/Account Details: This confirms your service address and Meter Installation Registration Number (MIRN).


  • Meter Details: This displays the current reading. Ensure it’s an actual reading, not an estimate, to avoid discrepancies. If you find your meter reading has estimated usage instead of actual, call your gas provider immediately.


  • Energy Units Released: This is the gas used, measured in megajoules (MJs), calculated from current and previous readings.


  • Supply Charge: A daily fixed cost to deliver gas. This factors in your chosen gas tariff. Check the supply period for your average rate.


  • Usage Charge: This variable charge reflects your gas consumption (c/MJ).


  • Account Service Fee: This covers your account's administration.


  • Current Charges/Total Costs: This shows the total amount due, including discounts, credits, and payment details.


Common Reasons for High Gas Bills

Now, let’s investigate those high gas bill reasons.


Temperature Fluctuations and Appliance Usage


Winter brings higher bills due to increased heating, longer showers, and general household gas consumption. Lowering the thermostat by just one degree while sleeping or away can save money, as noted by Constellation.


Guests can lead to higher utility usage, impacting your gas plans, electricity, and water bills. School holidays also contribute to increased consumption, as more time spent at home naturally raises usage.


Leaks: A Silent Drain on Your Wallet


Gas leaks are often undetectable but significantly impact bills. Hire licensed gas fitters to find and fix any leaks in your gas system. Look for Atmos Energy near you.

Ageing or Faulty Appliances


Inefficient appliances waste energy, leading to higher bills. When purchasing new appliances, use the Energy Rating Calculator to compare gas usage and running costs across different models. This tool helps identify hidden causes of high gas bills, making it easier to choose energy-efficient options.


Tariff Changes and Plan Expiries


Check for changes in the billing period, estimated readings, or expiring plan benefits. These can push up your bill unexpectedly.


Use your government's official comparison website to find the best deals. These hard-to-track changes are common gas bill culprits.


calculating gas with a calculator

Simple Savings Strategies


Many gas-saving tips are budget-friendly and can help reduce both gas and electricity costs. To compare energy usage effectively, try these energy-saving tips:


Insulation: A Warm Blanket for Your Home


Proper insulation can slash heating and cooling bills by 15% or more monthly. Older homes may need improvements to windows, doors, and drafty areas. Sealing gaps is a cost-effective way to save, as even minor air leaks can raise gas bills.

Consider investing in proper sealing of drafty areas to further reduce your bills.


Water Works: Showers and Laundry


Hot water systems use a substantial amount of household energy. Manage hot water usage to lower gas bills.


Shorter showers can dramatically cut costs. Installing low-flow showerheads saves water without sacrificing comfort. Line-drying or rack-drying clothes can also make a difference.


Thermostat Awareness and Programmable Controls


Heating and cooling account for up to 50% of home energy costs. Programmable thermostats offer a convenient way to manage temperature and save energy.


Set a comfortable temperature while still prioritising savings. Heat only the areas in use and lower the thermostat when asleep or away.


Surprisingly, few Australian households utilise programmable thermostats effectively. Installing smart thermostats helps to manage the gas you're spending more accurately.



hot water systems outside

Hot Water System Solutions: Solar or Storage


If your budget allows, upgrading to a more efficient hot water system can lead to significant long-term savings. For households receiving estimated bills, opting for gas storage hot water systems might offer more predictable costs.


Additionally, insulating hot water lines can reduce heat loss, especially if you have town water, helping to manage energy expenses more effectively.


Fix dripping hot taps promptly as they waste gas and water. Regular inspections by a licensed plumber are recommended. Solar hot water systems can also be a great alternative when finding ways to offset high gas bill reasons over time.


Depending on how much sun exposure your roof gets this may not make sense so compare which energy efficient methods makes sense for you based on the specifics of your home and roof layout.


FAQs about high gas bill reasons


Why is my gas usage so high?

Many things affect gas usage: seasonal changes, more people in your house, less efficient appliances, and leaks.


Why is my gas bill so high all of a sudden in 2024 in Australia?

High gas prices, increased winter demand, and changes in your gas usage could be why your bill is high in Australia in 2024.


Reviewing your energy plan might help you find a better fit for your consumption needs. For further guidance, consider reading the Australian Competition and Consumer Commission’s recommendations.


What causes high gas fees?

High gas fees come from daily supply charges, usage charges, administrative fees, and extra plan costs. High global demand also pushes up prices.


Review the Australian Australian Energy Regulator details to determine how the rates are working and why gas bill reasons tend to vary greatly.


What uses the most gas in a home?

Heating usually uses the most gas. Water heaters, stoves, ovens, and clothes dryers also use a lot of gas, depending on their type, how often they're used, and how efficient they are.


Conclusion

High gas bills often result from a combination of factors not readily apparent on your bill. By understanding your bill, usage patterns, appliance efficiency, and performing regular maintenance, you can save significantly.


Implement cost-cutting measures and energy-efficient practices for better financial control. 

Small daily changes are just as important as bigger improvements when it comes to lowering your gas bill.


In 2024 in Australia, reasons for high gas bills have often included factors impacting everyone, including the pandemic recovery, increased energy demands globally and more.

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