The decision confirmed a draft recommendation several weeks ago and meant the typical household bill would jump by between $155 and $225 a year.

Gas price pressures in the state came from the increased gas demand of LNG export projects and the strong opposition to fraccing and coal seam gas operations, which resulted in a moratorium on the practice in Victoria.

Unsurprisingly, the Australian Petroleum Production and Exploration Association responded to the news with a big “told you so”

“As demand for any commodity increases and the cost of producing that commodity increases, so too does the price,” APPEA eastern region chief operating officer Paul Fennelly said.

“Industry has long argued that downward pressure cannot be placed on rising gas prices without expanding the natural gas industry in NSW. Yet policy settings that provide certainty for industry to explore and produce natural gas are sadly lacking.

“There is a large natural gas resource in Australia for both domestic and export customers. However, gas resources are of no benefit while they remain undeveloped.

“Today’s IPART determination shows that NSW must contribute to the east coast market and get on with developing its natural gas resources, lifting a freeze on exploration and giving urgent consideration to projects that would increase supply.”

IPART chairman Peter Boxall said the price hike was being driven by “a fundamental change” in the wholesale gas market due to the LNG export trend.

“We are aware that these increases are significant and acknowledge concerns about affordability,” Boxall said.

“However, as gas starts to be exported from eastern Australia for the first time, the rising costs faced by retailers to supply gas to consumers need to be recouped.”

The increases will apply to the 25% of small gas customers in NSW that have not signed up to a competitive supply contract and remain on a regulated tariff, although those on market tariffs may also face price hikes.