Origin customers in Canberra to face price rise in February

Origin Energy is increasing natural gas prices for residential customers an average of 7 per cent from February 1, while small businesses are facing a 9.1 per cent increase.

The changes mean the average household gas bill for Origin customers will increase $116 to $1771, according to figures supplied to The Canberra Times.

Small business owners will be paying an extra $782, taking their total bill to $9331.

An Origin spokesman said like all retailers, it had been facing "materially high" gas prices in recent months which meant it was costing more to supply its customers.

"Increasing prices is never a decision we take lightly, especially at the moment when we know some people are struggling with higher costs of living," the spokesman said.

Canberrans aren't facing the worst of the east coast bill shock, with Origin's customers in Victoria set for a 22 per cent increase.

An ActewAGL spokeswoman confirmed it would not follow Origin's lead and increase its standing offers early in the new year for customers in Canberra.

The company reviews prices annually, with changes coming into effect from July 1.

The spokeswoman said its typical residential customers paid about $1620 each year for gas.

The gas price rises being felt across the east coast will put more cost-of-living pressure on households already battling the effects of high inflation and successive interest rate hikes.

It also adds to the political pressure on the Albanese government, which has made the task of shielding households and businesses from the worst of the international energy crisis one of its main priorities for 2023.

The government last month rushed through emergency legislation to intervene in the energy market to prevent the most dire forecasts for gas and electricity price rises.

Amid howls of disapproval from gas giants and the Coalition, the government passed laws to impose a 12-month, $12 per gigajoule cap on uncontracted gas in the domestic market and establish a mandatory code of conduct which will soon force companies to set prices at a "reasonable" level.

The federal government's gas market intervention was part of an agreement struck at national cabinet, which also involved the states capping coal prices.

The intervention has already caused disruption.

Some gas retailers are reportedly struggling to lock in new contracts with providers, preventing them from offering affordable gas to new industrial and commercial customers.

Prime Minister Anthony Albanese on Wednesday dismissed suggestions that the intervention, which he described as "sensible", wasn't working.

Climate Change and Energy Minister Chris Bowen also defended the intervention, pointing out that future energy prices had come down "substantially" since the government launched the emergency action.

Mr Bowen said the new price offers related to gas which had already been under contract for 2023.

"So, of course this is going to take some time to flow through. You're seeing some prices that were already in the system before our intervention," he told ABC radio.

Opposition Leader Peter Dutton said the gas price cap was not working as intended.

"We warned it would be a disaster, and we said it shouldn't be done," he told reporters on Wednesday.

"They did it, and what are we seeing now? An increase in prices."

With AAP