Retail gas prices in Western Australia will increase 8.3 per cent from tomorrow, costing an average family an extra 90 cents a week.
Alinta Energy chief executive Jeff Dimery said while the increase would not be welcomed by the public, it was the minimum required to ensure the company recovered some of the recent rise in its costs of supplying gas.
"The reality is Alinta Energy is still not recovering the cost increases in supplying gas that have been incurred in previous years and is not in a position to continue to absorb the large increases associated with supplying gas," he said.
"We are now in the difficult position of passing some of the costs to customers."
In 2011, Alinta Energy was allowed a 10 per cent increase in its tariffs, which was far less than the 30 per cent rise an independent report recommended to the state government.
Mr Dimery said it meant Alinta Energy had to absorb more than $25 million in increased costs.
He said Alinta Energy had not sought to recover those losses and would still not be recovering the full increases in costs incurred this year.
