Victoria’s Allan Labor Government has revealed an updated Gas Substitution Roadmap on 14 December 2023, aiming to alleviate the financial burden on Victorians amidst rising gas prices.
As outlined in a statement from the Allan Government, the dwindling cost-effectiveness of fossil gas has resulted in a 35 per cent increase for typical Victorian residential customers, translating to over $500 more compared to less than two years ago.
To facilitate the shift away from fossil gas, the roadmap introduces an expanded Victorian Energy Upgrades program. Starting in 2024, discounts will incentivise Victorians to embrace electric induction cooktops, encouraging a transition to modern and cost-effective electrical appliances.
The roadmap asserts that households opting for an all-electric setup can realise annual savings of up to $1,700, with the addition of solar power potentially increasing the savings to $2,700 – marking a significant 60per cent reduction in energy bills.
Beyond financial savings, the roadmap targets the elimination of gas connection costs, potentially saving consumers up to $400 annually.
In guiding this transition, a Regulatory Impact Statement (RIS) is scheduled for 2024, involving detailed industry engagement and public consultation. However, certain industries, including Victoria’s hospitality, large commercial, industrial, and manufacturing sectors, will be excluded from the RIS.
Renters are included in the government’s efforts, with a review of minimum energy efficiency standards for rental homes set for public consultation in 2024. This review encompasses improvements in ceiling insulation, draught-sealing, hot water, heating, and cooling, aiming to provide renters with more affordable and comfortable living conditions.
To curb unnecessary expenses, the government is cracking down on exorbitant disconnection fees imposed by gas companies and scrutinising inducements for the installation of gas appliances, with a decision expected in 2024 following ongoing industry consultations.
Starting from January 1, 2024, new homes requiring a planning permit will no longer be connected to the gas network. The government will initiate consultations on the potential future expansion of this phase-out to include all new residential dwellings and select commercial buildings.
“We’re ensuring Victorians aren’t locked into expensive fossil gas prices and sky-high energy bills for decades – helping them switch to efficient electric appliances that will deliver significant bill savings,” Minister for Energy and Resources Lily D’Ambrosio said.
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