Vic; Gas, electricity to cost more

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Vic; Gas, electricity to cost more

MELBOURNE, Dec 23 AAP - Nearly all Victorian families will have to pay more for gasand electricity next year, but the state government said today it had limited the increasessought by energy companies.

Gas customers in the TXU area will have to pay the highest increase - an average of $56 a year.

Energy, Industries and Resources Minister Theo Theophanous said suppliers to Victoria'sprivatised energy market initially wanted hikes of up to 14.3 per cent next year, butthe government knocked them back.

He said the government was providing a special $57 million subsidy to farmers, householdsand business customers in country Victoria to limit the effects of the agreed increases.

Gas price increases will take effect in January, while the new electricity prices willbe effective from February or April.

Origin Energy gas customers will notice no change.

And Origin/CitiPower power users will see average bills fall by four per cent.

On average, energy customers will pay an average five per cent more, the minister said.

"Most Victorians will face an increase in their energy bills in 2003 that is no morethan the inflation rate - no matter where they live," Mr Theophanous said.

"The Bracks government has struck the right balance between the interests of consumersand the need for a viable and competitive energy industry."

AAP ra/gfr/cd/sb

KEYWORD: ENERGY VIC