Combet warns of price gouging on refrigerant gas

You’d think they’d learn from the Brumby’s debacle. Wholesale refrigerant gas suppliers are hiking up their prices, blaming it on the carbon tax and hoping no one will notice, according to Greg Combet.

The Minister for Climate Change and Energy Efficiency has expressed concern that some suppliers’ prices show increases unrelated to carbon pricing.

For instance, the refrigerant R22 does not attract the carbon tax, but one supplier has reportedly increased prices for this refrigerant by more than $60 per kilogram. Another supplier has quoted an increase of $285 for R404A gas, despite it only having an equivalent carbon price of $75 per kilogram.

Combet has called for transparency from wholesale refrigerant gas suppliers, saying they must explain their price increases and which costs they are passing on to their customers.

He reminded customers that refrigerant use in consumer products is generally small and so will have a proportionately small price impact: a domestic fridge is expected to increase by around $4 as a result of the carbon tax. While these price increases may not have a significant impact on consumers, businesses with large-scale refrigeration systems are likely to feel the effects.

The ACCC has received $12.8 million from the government to ‘crack down’ on businesses engaged in price gouging by making clams about carbon pricing.

Suppliers making false carbon price claims could be in breach of the Competition and Consumer Act, which can carry a $1.1 million fine for misleading consumers. Directors and senior officers could also be hit with fines of up to $220,000 as well as disqualification from running a company in future.

Businesses and consumers are urged to call the ACCC hotline on 1300 300 609 or visit the ACCC website if they have concerns about false carbon claims.

The government has released a fact sheet about gas refrigerant pricing for customers.