Australia’s Capital Bans New Gas Connections From December

Taxpayer-funded rebates will be available for the electrification of homes.

A gas burner working. Fred Tanneau/AFP via Getty Images

The Australian Capital Territory (ACT) will ban new gas network connections on buildings from Dec. 8 this year.

The Labor and Greens government will stop connections at all residential, commercial, and community facility zones as part of its net zero push.

The new law will also apply to major renovation projects and knockdown rebuilds where a gas connection has been removed.

Emissions Reduction Minister Shane Rattenbury said the regulation would “help electrify” the city and achieve a “sustainable, zero emissions future.”

“This regulation to prevent new gas network connections in the ACT is an important step to reaching net zero emissions by 2045,” he said.

Mr. Rattenbury, who is the leader of the Greens in the ACT, is also the attorney general and minister for water, energy, gaming, and consumer affairs.

The new regulation is part of a parliamentary agreement between the Labor and Greens government, formed after the last election.

The legal framework to end new fossil fuel gas network connections was voted on in June (pdf), via the Climate Change and Greenhouse Gas Reduction (Natural Gas Transition) Amendment Bill.

The Liberal Party in the ACT opposed this legislation in the Legislative Assembly, but the Labor-Greens majority commands a 16-seat majority out of the 25-member chamber.

During the debate, Canberra Liberal MLA Nicole Lawder called the new laws “flawed.”

“This legislation will limit Canberrans’ choice when it comes to selecting their preferred energy source for their homes. We feel that this is a flawed piece of legislation,” she said during the debate (pdf).

“It is about being seen to take action without actually delivering meaningful results. In drafting this legislation, the Greens-Labor government have failed to consider the territory’s pipeline infrastructure, which could have as long as 80 years remaining of its useful life.”

However, Chief Minister Andrew Barr said during the debate he was “pleased to support the bill,” claiming it demonstrated that “progress on climate action” could be achieved.

“The amendment today to enable the prohibition of new gas connections for certain developments is the next step in the territory’s journey towards our net zero future.,” he said.

“We must recognise that gas is still a significant part of ACT energy consumption. Twenty-two per cent of our annual emissions are from gas, and that is split roughly 50-50 between households and industrial use, by volume.”

Existing Connections Not Impacted

Minister Rattenbury said about one-third of Canberra homes ran completely on electricity. He said existing gas connections will not be impacted by the new regulation.

An exemption process will also be established for some businesses, however, the government said these would only be granted in “limited circumstances.”

“The ACT government knows the cost to upgrade from gas to electric appliances can be costly for households and businesses, so we want to avoid these costs as much as possible by building all-electric from here on,” he said.

“Households and businesses can avoid costly retrofits by going all-electric from the beginning.”

The government will also offer tax-payer-funded rebates for electrification of homes and businesses.

“This includes rebates for electrification upgrades for low-income, no-interest loans for sustainable upgrades, free advice and support to make business and households more energy efficient, concessions on energy bills and more,” Mr. Rattenbury said.

He said the pathway to electrification is a “long road,” adding that it is “not something that will happen overnight, and there is time to plan for it, but it will happen.”

Victoria’s Gas Ban

Victoria also announced a plan to stop new gas connections for new apartments, homes, and residential subdivisions, which will be a requirement of planning permits from Jan 1, 2024.

The government announced the initiative on July. 28, when Daniel Andrews was still in power, claiming new Victorian households would save “up to $1,000 (US$664)” on their yearly energy bills, and reduce household emissions.

In response, a petition emerged in October with more than 3,000 signatures demanding the government scrap its ban on new gas stoves.

A kitchen gas stove burner at a residential property in Melbourne, Australia, on June 16, 2022. Joel Carrett/AAP Image

The new Premier Jacinta Allan recently launched the Victorian State Electricity Commission’s (SEC) strategic plan on the state’s renewable future on Oct. 26.

This plan requires new homes to be all-electric from 2024 (pdf). The Victorian SEC will “ support households” switch to electric.

The Commission said electrifying homes could “cut” household energy bills by close to 60 percent, and “remove the health impacts of gas, cooking, and heating.”

“With around 80 percent of households connected to gas, Victorians use more gas at home than any Australian state.

“Switching heating, hot water, and other appliances to electric will help reduce emissions and energy bills. In fact, whole home electrification can lower household energy bills significantly.”