What Is The Justification for a Gas Facility Fee

I have often wondered how gas companies justify having a facility fee-I pay $85 ish each a year for 2 cylinders. How do they get away with this? Why do we not question it? Don't they make enough from selling the gas?

Comments

  • Will the cylinders last forever?

    • If you're using it, it always disintegrates before your eyes.

      If you throw it into the ocean, it will float around aimlessly forever.

  • Your renting the tested equipment off them. You can buy your own cylinders if you want. Although you would need someone to come pick it up refill it and service it.

    • It is possible to install gas tanks on your property, and the relevant suppliers call and fill them.

  • What’s the gas used for?

    If it’s low usage like cooking only lots if people use 9kg bottles instead of the 45kg ones.

    • Agree, but op has two 45kg bottles, so probably more than cooking. However could replace one bottle with a 9kg bottle, so when big bottle runs out, they switch to 9kg, then order replacement 45kg bottle

  • Gas Facility Fee

    https://www.originenergy.com.au/for-home/lpg/using-lpg/gas-b...

    There's also an annual LPG equipment fee per gas bottle. This covers the cost of purchasing, testing, maintaining and replacing your gas bottles to the high standards of safety set by legislation that controls the gas industry.

    • I think gas bottles are good for 10 years before they must be pressure tested and recertified. Duno what they are worth new but im guessing $85 a year more than covers the cost of testing and purchase of new bottles.

      • Duno what they are worth new but im guessing $85 a year more than covers the cost of testing and purchase of new bottles.

        $85 for 2 bottles, so ~$42.50 a bottle a year. Which is about $420 after 10 years. Seems about right to cover buying, testing and looking them.

  • So the way it works is they charge as much as they think they can.

    The theories about the free enterprise causing low prices, efficiency and doing everything to make dullard consumers lives better are bullshit but this theory is constantly espoused in the media as though it was science.

    • Is OP is looking to overthrow a democratically government and replace it with some communist/socialist dictatorship?

      Will a charge of $170 a year will be the rallying point for revolution comrade?

    • Give it away, why is every post the path to a socialist rant by our resident green ?

  • Paying $85/cylinder/year = ~$0.23c/day
    That doesn't seem to be too different than the 'Base Charge' that ranges between $0.1901 and $0.3128/day (depending on your location) that I'm seeing in some tariffs in Victoria (Australian Gas Networks) for supply via the gas network.