Victoria comes under pressure to ban new home gas connections

Pressure is building on Victoria to ramp up its action on phasing out gas use, after the energy minister expressed concern last week about companies trying to induce consumers to switch from electric appliances to gas. 

The Victorian Greens want a ban on gas companies using “predatory behaviour and bribes” to push Victorians into switching to gas, but the political will to introduce an ACT-like ban on gas connections to new buildings is lacking, say experts.

The state with the largest number of gas connections in the country needs more comprehensive action to start a gas transition, says Victoria Energy Policy Centre head Bruce Mountain.

“Victoria’s got a big gas problem, bigger than the other states, because gas is a big part of our space and water heating. It’s going to require a concerted effort by the government to get people to switch out of gas into electricity,” he told RenewEconomy.

“There are fairly large capital outlays that need to be made, and unless the government orchestrates a transition it’s going to happen very slowly. It’s going to require policy action.”

Banning gas connections to new homes could easily be achieved, but requires a government willing to get tough on the issue, Mountain says. 

The recent state budget ended the Home Heating and Cooling Upgrades program that helped renters and low-income households to switch from gas to efficient electric heaters, but retains programs to incentivise electric water heaters and efficient gas and electric heating. 

“Big gas companies are only here to line their own pockets – that’s why we’re helping households save on their energy bills by offering incentives to transition off gas and bringing back the SEC to deliver more renewable energy as we work towards net zero by 2045,” a Victorian government spokesperson told RenewEconomy

“We’re currently updating our nation-leading Gas Substitution Roadmap to ensure that more Victorians can make the switch to electric appliances which are slashing household bills and cutting emissions.”

Minister wants chat with gas company

During question time last week energy minister Lily D’Ambrosio said she’s “keen” to have a conversation with Multinet, the company in Victoria trying to induce people to switch to gas using discounts and rebates, “to understand the logic there”.

In NSW, gas company Jemena is offering a Natural Gas Cash Back program which gives a $500 rebate for replacing a non-gas heater with ducted gas heating and a $400 rebate to replace electric hot water with gas, among other offers.

In Victoria, Multinet offers $500 off the price of ‘major’ gas appliances such as hot water, home heating and pool heating, and a $100 rebate for ‘minor’ appliances like cooktops and BBQs. A $500 “Connection Bonus” is also on offer as a once-off payment to an existing property that connects to natural gas for the first time

“Why should you be pushing people onto something that is very expensive at a time when cost of living is very pronounced for everyone in Australia, including Victoria,” the minister said.

“There is a growing concern around a knowledge base around health impacts for homes, and just last week I received representations from Healthy Futures… on their concerns around usage of gas within homes and health impacts.

“So that is why we’re continuing to focus on moving away from that through electrification and energy efficiency.”

D’Ambrosio says the Labor Andrews government could prevent companies from that kind of behaviour, but she would need to seek advice from her department first. 

Victoria launched its Gas Substitution Roadmap last year, which removed the requirement for all new homes to be connected to gas networks and began to phase out incentives to have gas this year. It plans to update it later this year.

The Greens are putting pressure on the government to ban all new homes from gaining a gas connection.

“Big gas corporations know their product destroys the planet, is super expensive and bad for people’s health, so now they’re resorting to bribing Victorians to use it, and locking vulnerable people into a life of expensive gas use that also hurts their health,” said Victorian Greens MP Ellen Sandell.

“It’s outrageous – the Victorian government must step in and ban these unethical practices from big gas giants.”