A Homeowner's Guide to Lowering Your High Gas Bill in Australia
Key Takeaways:
Understand the main reasons gas bills spike, from seasonal usage to tariff changes.
Learn practical habits and long-term upgrades that meaningfully reduce energy costs.
Discover what to do when bills become unmanageable, including support options and provider comparisons.
Gas bills can fluctuate from quarter to quarter, sometimes leaving households wondering why the latest statement is significantly higher than the last. Rising wholesale gas prices, changes in your household’s daily routine, and the weather are all contributing factors. But in other cases, a high bill can reveal inefficient appliances, incorrect readings, or even safety concerns like leaks.
Understanding the structure of your bill and knowing what to look out for is the first step in taking control of your gas costs. This guide breaks down how gas bills work, the most common reasons they spike, and the steps you can take to keep them under control.
Quick Diagnostics: Find the Cause of Your High Bill
Check the Season: Is this your first winter bill? Higher heating and hot water use is the most common cause.
Look at Your Bill: Is the reading marked as an 'Estimate' instead of 'Actual'? An inaccurate estimate could be the problem.
Review Your Habits: Has someone started working from home, or have you had guests? More people at home means more gas usage.
Check Your Appliances: Is your hot water system or heater more than 10-15 years old? Old appliances are often inefficient.
Suspect a Leak? If you smell gas or have an unusually high bill with no change in habits, it could be a leak. Turn off your gas supply immediately and call your distributor's emergency line.
First, Let's Understand Your Gas Bill
Gas bills can look complex, with numbers, tariffs, and terms that aren’t immediately clear. In reality, your bill is made up of just a few main components: fixed charges, variable charges, and adjustments. Learning to interpret these helps you see whether your higher bill comes from using more gas, being charged at a higher rate, or something else entirely.
Bills also contain information about your meter number, billing period, past usage comparisons, and whether the reading was actual or estimated. Looking closely at these details often explains at least part of the increase.
Breaking Down the Charges: Supply vs. Usage
Every gas bill has two key charges:
Supply charge (fixed cost): This is a daily connection fee, covering the cost of maintaining pipes, meters, and infrastructure. Even if you went away for a month and didn’t turn on a single appliance, you’d still see this charge. Supply charges can range from 60 cents to over $1 per day, depending on your retailer and location.
Usage charge (variable cost): This is where most households see fluctuations. Your retailer calculates this by taking the amount of gas you’ve used, measured in megajoules (MJ), and multiplying it by your tariff (cents per MJ).
Your usage charge is the part you can influence most. If your daily consumption rises due to heating or hot water use, this section of the bill climbs quickly. The supply charge, on the other hand, is outside of your control. The only way to reduce it is by switching providers with lower daily rates.
Is Your Bill Based on an 'Actual' or 'Estimated' Reading?
One overlooked cause of bill spikes is estimated usage. If your meter couldn’t be accessed — perhaps due to a locked gate, dog in the yard, or a missed reading cycle — your bill may be based on an estimate.
Actual readings: These reflect your real consumption for the period.
Estimated readings: Retailers calculate these based on past usage patterns, which can be inaccurate if your recent consumption differs.
If you’ve been away on holiday or your household has changed, an estimate can dramatically overshoot your true usage. Most retailers allow you to submit your own meter reading online or via their app. Doing so ensures your bill reflects what you actually used, and it can correct inflated charges sooner.
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7 Common Reasons for a Sudden High Gas Bill
1. Seasonal Use (The Winter Heating Spike)
Gas use can easily double in colder months. Ducted heating, space heaters, and longer hot showers are all bigger drains on gas during winter. Even if you believe your habits haven’t changed, the system has to work harder to keep water and rooms warm in lower temperatures. This seasonal effect is one of the most common and least avoidable causes of higher bills.
2. Inefficient or Aging Gas Appliances (Especially Hot Water)
Hot water systems are typically the single biggest gas consumer in a household, making up as much as half of overall usage. Older storage tanks often lose heat throughout the day, wasting energy even when no one is using hot water. Similarly, aging gas heaters may lack the efficiency of newer 6-star rated models. If your appliances are 10–15 years old, replacing them can make a dramatic difference.
3. A Change in Your Household Habits (Working from Home, More People)
Gas use isn’t just about appliances; it’s also about how often they’re running. If someone starts working from home, the heater might run during the day instead of only in the evenings. If guests or new household members move in, more showers, laundry, and cooking increase demand. Even subtle changes, like cooking more meals at home, can push up your usage noticeably.
4. A Price Increase From Your Energy Retailer
Energy retailers regularly adjust tariffs in line with wholesale gas market movements. Even if you’ve been careful with usage, you might notice higher bills due to these price hikes. The Australian Energy Regulator (AER) and the Essential Services Commission publish updates on retail price trends, and many households have seen rises since mid-2024. Always check the tariff rates section of your bill. It will show whether you’re paying more per MJ than before.
5. Poor Insulation and Drafts in Your Home
If your home is poorly insulated, gas heating systems work overtime to maintain warmth. Heat escapes through gaps around doors and windows, or through the roof if the ceiling insulation is thin or missing. This inefficiency can significantly increase gas usage without you realising. Even inexpensive fixes, like draft stoppers or weather sealing, can help keep the heat in and bills down.
6. Billing Errors or an Incorrect Meter Read
Occasional errors still occur. Your bill might list the wrong meter number, or the distributor may miscalculate the conversion factor (the adjustment between gas volume and energy value). If you suspect an error, compare your bill’s usage data with past bills and physically check the reading on your meter. If the numbers don’t align, raise it with your retailer. They’re required to investigate.
7. The Serious One: A Potential Gas Leak (and What to Do)
Gas leaks are rare but serious. Not only will they inflate your bill, but they’re also a safety hazard. Warning signs include:
A sulphur or rotten-egg smell near pipes or appliances
A faint hissing sound from gas lines
Unexplained high bills despite no change in usage
If you suspect a leak, turn off the supply at the meter immediately, evacuate the property, and call your distributor’s emergency line. Never attempt to fix a leak yourself.
If you smell gas or are concerned about gas appliance safety, immediately call: Gas Leaks and Emergency services on 1800 GAS LEAK (1800 427 532). For more information on what to do in the case of a gas leak, check out this resource here: Gas Emergencies, Leaks and Outages
Your Action Plan: How to Lower Your Gas Bill for Good
Knowing the causes is only half the battle. The next step is taking action to manage costs.
Quick Fixes: Simple Habit Changes You Can Make Today
Shorten showers to reduce hot water demand
Lower your hot water system thermostat to a safe but efficient setting (around 50–55°C)
Wash clothes in cold water
Use timers on heaters so they don’t run longer than needed
Check your bill and submit actual meter readings if it’s estimated
Seal drafts around doors and windows with inexpensive weather strips
These are low-cost, practical steps you can implement immediately.
Long-Term Investments: Appliance Upgrades and Insulation
For sustained savings, consider upgrades:
Hot water systems: Replace old storage tanks with instantaneous or high-efficiency units
Heating: Upgrade to 5- or 6-star rated gas heaters or explore efficient electric options
Insulation: Install or improve ceiling and wall insulation to retain warmth
Windows: Add double glazing or window films to reduce heat loss
These upgrades involve upfront expenses but can cut hundreds from annual bills while improving comfort.
The Power of Shopping Around: How to Compare Gas Providers
Even if your usage stays the same, switching retailers can lower costs. Plans vary in supply charges, usage rates, and available discounts. Use government-backed tools such as Energy Made Easy (energy.gov.au) to compare offers. Many households find savings simply by moving to a plan with lower daily supply charges or a better tariff structure.
What to Do If You're Struggling to Pay Your Bill
High bills can put strain on household budgets, but support options exist.
Contacting Your Retailer to Request a Payment Plan
Retailers are legally required to help customers experiencing financial difficulty. This can include:
Payment extensions
Instalment plans
Bill smoothing (spreading costs evenly across the year)
Reaching out early is key. The sooner you contact your retailer, the more flexible options they can offer.
Checking Your Eligibility for Government Energy Rebates and Concessions
Each state and territory has rebate schemes to help eligible households manage energy costs. Concessions are usually available to pensioners, concession card holders, and low-income earners. Examples include the NSW Gas Rebate and Victoria’s Annual Concession. Contact your retailer or state energy office to see what you may qualify for.
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Frequently Asked Questions (FAQs)
What uses the most gas in a typical Australian home?
Hot water systems usually account for the largest share, followed by space heating and then cooking appliances.
How do I know if my gas meter is faulty?
Compare the numbers on your bill to your meter’s display. If the recorded usage doesn’t match your actual meter reading, ask your retailer for a meter accuracy test.
What is the average gas bill in Australia?
According to Finder’s 2025 data, the average quarterly gas bill is $231, though this varies by household size, state, and provider.
