Wesfarmers’ Kleenheat Gas has entered the domestic natural gas market, offering a discount to win customers from former monopoly market holder, Alinta.
In a shakeup of the state’s energy market that could lead to a price war, the Wesfarmers’ subsidiary announced it would sell natural gas to households, small business, commercial and industrial customers from Geraldton to Busselton, including Perth.
Kleenheat, which is traditionally associated with its dominant bottled gas supplies, said the 620,000 connected to the Mid West/South West main distribution system that takes gas from the Dampier to Bunbury pipeline now had a choice.
As part of its strategy to entice customers to make the switch, it will offer a 10 per cent discount only to customers who signed up for a fixed-term of two years under its Monthly Smart Saver plan.
Overhead costs will be kept to a minimum as Kleenheat aims to provide the service through the internet, with customers to receive bills by email and pay their accounts monthly through direct debit.
“By making the most of commonly-used online account management, we can lower our costs and pass savings on to our customers through our Monthly Smart Saver plan,” Kleenheat’s natural gas general manager Mark Gadsby said.
“The 10 per cent discount applies only to the price of the gas you use, which is by far the largest component of your natural gas costs.”
Kleenheat claims that its discount could save families of four or five more than $100 and $200 a year.
The entry of Kleenheat into WA’s natural gas market is long overdue, with the market having been open for competition for some time now, and the Economic Regulation Authority cutting the rate at which the owners of the South West network can charge for its use.
Customers who do not wish to be locked into a two-year contract can sign up to Kleenheat, however will not receive the discount.
