‘Gas Supplies Are Dwindling’: Victorian Government Consults on Electric Plan

The report said the state needs to reduce its greenhouse gas emissions. The Liberal Opposition described Labor’s ‘gas ban’ as draconian.

Blue flames from a gas at a home in Arlington, Va., on May 3, 2023. Olivier Douliery/AFP via Getty Images

The Victorian Labor government is promising not to make any changes to gas cooktops in homes, but the same cannot be said for new construction or end of life gas heaters.

The government released the 2024 Gas Substitution Roadmap Update on Dec. 13 and also opened consultation on the Building Electrification Regulatory Impact Statement (RIS).

As part of the consultation, the government is considering expanding gas bans on new construction and requiring end of life replacement on some appliances.

“The Building Electrification RIS will publicly consult on options to require end of life replacement of gas heaters and hot water systems with efficient electric alternatives,” the gas substitution update states (pdf).

“It will also consult on expanding the all‑electric requirements for new construction—currently only applying to new homes requiring a planning permit—to all new homes and many new commercial buildings.”

However, the Allan government promised not to force Victorians to convert gas stoves, while also noting they have not made any final decisions in relation to the consultation process.

“All new homes that need a planning permit are already required to be built all electric. The consultation will consider expanding this requirement to all new homes and many commercial buildings,” the government said. 

“The government will not make any changes to gas cooktops in homes, gas appliances in existing commercial buildings and industrial, agricultural and factory facilities, as well as the use of LPG.”

Gas Costing More: Government

The gas substitution roadmap (pdf) said was no longer a cheap and abundant source of energy in Victoria. It noted that gas wholesale prices had nearly doubled in the last three years.

Victorian residents were now paying $500 more, or 34 percent greater for gas compared to 2021 to 2022.

However, the government stated their work to push more homes and businesses from gas to electric was working.

“Since the introduction of electrification activities 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 explained that since July 1, 2024, all new homes requiring a planning permit must be be built all electric.

Gas Supply Dropping

However, gas supply is dropping quicker than demand, meaning new transitional supply has to stop shortfalls.

“Dwindling gas supplies represent a challenge for the southern states of South Australia, Victoria, Tasmania, and New South Wales,” the report said.

“The Victorian government will continue advocating for national reforms to deliver the transitional supply Victorians need.”

The government acknowledged some industries will continue to rely on gas.

However, the report said cutting gas use was critical to meet greenhouse gas emissions targets, noting fossil gas contributes about 16 percent of Victoria’s greenhouse gas emissions.

“The reasons Victoria should accelerate the transition away from fossil gas are more pressing than ever: ongoing gas supply risks, increasingly expensive gas bills, and the need for the state to reduce its greenhouse gas emissions,” the report said.

Energy and Resources Minister Lily D'Ambrosio said was no longer a cheap and plentiful source of energy for Victorian homes and businesses.

“Our work to date has laid out a long term vision for energy efficiency, electrification and renewable gases. Now, the 2024 Gas Substitution Roadmap looks to ensure the gas market works for Victorian families and businesses,” she said in the report.

“The Allan Labor government is securing gas supply while we continue to deliver cheaper, cleaner power for our future.”

‘Draconian’: Opposition

However, Liberal Shadow Energy Minister David Davis said Labor’s “draconian gas ban” means higher costs for Victorians.

“The Allan Labor government is proposing new regulations to ban gas appliances in every Victorian home and ban gas connections to all new residential dwellings and most new commercial buildings,” he said.

“Concerningly, the proposed regulations will mean for all existing residential buildings in Victoria, gas heating and hot water systems (including pool heaters) cannot be installed, and existing gas appliances cannot be replaced with gas appliances at the end of their life.”

Davis said forcing households to electrify could cost them more than $30,000, making the cost-of-living crisis worse for struggling Victorian families.

“The Allan Labor government cannot be trusted on gas cookers either. Premier Jacinta Allan directed Labor MPs to vote in favour of a Bill which gave the government power to ban any reticulated gas connections and appliances and explicitly gas cooktops,” he said.

Davis said the Liberals and Nationals firmly oppose Labor’s gas ban.

“The future of restaurants and commercial gas users also remains unclear as Labor continues to deny Victorians the choice they deserve,” he said.

The official statement from the government follows Allan reassuring Victorians in September that they can keep cooking on their stoves.

“I am wanting to be really clear that Victorians can continue to keep cooking with gas on their existing gas stove, and if they need to replace it, they will be able to do so,” she told reporters at the time.