Victorian Government Seeking Input on Proposed ‘All Electric’ Strategy
The report emphasized the need for the state to reduce its greenhouse gas emissions. The Liberal Opposition criticized Labor’s ‘gas ban’ as draconian.
The Victorian Labor government has pledged not to make changes to gas cooktops in homes, although new construction and end-of-life gas heaters may be affected.
As part of the consultation process, the government is exploring the possibility of expanding gas bans on new construction and mandating end-of-life replacement for certain appliances.
Nevertheless, the Allan government has assured that Victorians will not be compelled to convert gas stoves, while also clarifying that no final decisions have been made in relation to the consultation process.
Gas Costing More: Government
The gas substitution roadmap (pdf) has indicated that gas is no longer a cheap and abundant energy source in Victoria. It highlighted that gas wholesale prices have almost doubled over the past three years.
Residents in Victoria are now paying $500 more, or a 34% increase, for gas compared to the period from 2021 to 2022.
Nevertheless, the government affirmed that their efforts to transition more homes and businesses from gas to electric are yielding positive results.
“Since the rollout of electrification initiatives through the Victorian Energy Upgrades Program in May 2023, over 24,000 gas heaters and over 34,000 gas hot water systems have been upgraded to efficient electric alternatives,” the report stated.
The report also outlined that starting from July 1, 2024, all new homes requiring a planning permit must be constructed as all electric.
Gas Supply Dropping
However, the report pointed out that gas supply is declining faster than demand, necessitating measures to address shortages.
“Declining gas supplies pose a challenge for the southern states of South Australia, Victoria, Tasmania, and New South Wales,” the report highlighted.
“The Victorian government will continue to advocate for national reforms to ensure the transitional supply required by Victorians.”
The government acknowledged that certain industries will still rely on gas.
However, the report stressed that reducing gas usage is crucial to achieving greenhouse gas emissions targets, noting that fossil gas accounts for approximately 16% of Victoria’s greenhouse gas emissions.
“The reasons for Victoria to hasten the transition away from fossil gas are more urgent than ever: ongoing gas supply risks, escalating gas expenses, and the imperative for the state to lower its greenhouse gas emissions,” the report emphasized.
Energy and Resources Minister Lily D’Ambrosio pointed out that gas is no longer a cost-effective and abundant energy source for Victorian households and businesses.
“Our initiatives to date have outlined a long-term vision for energy efficiency, electrification, and renewable gases. Now, the 2024 Gas Substitution Roadmap aims to ensure that the gas market benefits Victorian families and businesses,” she stated in the report.
“The Allan Labor government is securing gas supply while simultaneously delivering more affordable, cleaner energy for our future.”
‘Draconian’: Opposition
Conversely, Liberal Shadow Energy Minister David Davis criticized Labor’s “draconian gas ban” for imposing higher costs on Victorians.
“Of particular concern, the proposed regulations would mean that in all existing residential buildings in Victoria, gas heating and hot water systems (including pool heaters) cannot be installed, and current gas appliances cannot be replaced with gas appliances upon reaching the end of their life.”
Davis expressed that mandating households to switch to electric could result in costs exceeding $30,000, exacerbating the cost-of-living crisis for struggling Victorian families.
“The Allan Labor government’s credibility on gas cookers is also in question. Premier Jacinta Allan instructed Labor MPs to support a Bill granting the authority to ban all reticulated gas connections and appliances, including gas cooktops,” he mentioned.
Davis affirmed that the Liberals and Nationals strongly oppose Labor’s gas ban.
“The future for restaurants and commercial gas users remains uncertain as Labor continues to deny Victorians the choice they deserve,” he remarked.
The government’s official statement comes after Allan reassured Victorians in September that they can continue to use their gas stoves.