The report emphasizes the need for the state to reduce its greenhouse gas emissions, with the Liberal Opposition criticizing Labor’s ‘gas ban’ as draconian.
The Victorian Labor government has pledged not to make changes to gas cooktops in existing homes, but 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 replacements for certain appliances.
It will also consider extending the all-electric mandate for new construction to include all new homes and many new commercial buildings, beyond those currently requiring a planning permit.
The government, however, has assured that Victorians will not be forced to convert gas stoves, and no final decisions have been made regarding the consultation process.
Increasing Gas Costs: Government
The gas substitution roadmap (pdf) highlighted that gas is no longer a cheap and abundant energy source in Victoria. It noted that gas wholesale prices have nearly doubled in the past three years.
Victorian residents are now paying $500 more, or 34 percent higher for gas compared to the period from 2021 to 2022.
Despite this, the government stated that its efforts to transition more homes and businesses from gas to electric are yielding results.
“Since the introduction 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 replaced with efficient electric alternatives,” the report mentioned.
The report highlighted that from July 1, 2024, all new homes requiring a planning permit must be built all electric.
Declining Gas Supply
However, gas supply is decreasing faster than demand, necessitating measures to address potential shortfalls.
“Diminishing gas supplies pose a challenge for the southern states of South Australia, Victoria, Tasmania, and New South Wales,” the report noted.
“The Victorian government will continue to advocate for national reforms to ensure the transitional supply needed by Victorians.”
The government acknowledged that some industries will continue to rely on gas.
However, the report emphasized that reducing gas usage was crucial to meeting greenhouse gas emissions targets, citing fossil gas as contributing about 16 percent of Victoria’s greenhouse gas emissions.
“The reasons for Victoria to expedite the transition away from fossil gas are more urgent than ever: ongoing gas supply risks, rising gas costs, and the imperative for the state to reduce its greenhouse gas emissions,” the report stated.
Energy and Resources Minister Lily D’Ambrosio highlighted that gas is no longer a cost-effective and abundant energy source for Victorian households and businesses.
“Our efforts so far 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 serves the needs of Victorian families and businesses,” she stated in the report.
“The Allan Labor government is securing gas supply while continuing to deliver cheaper, cleaner power for our future.”
Opposition Criticism
However, Liberal Shadow Energy Minister David Davis criticized Labor’s “draconian gas ban” for potentially increasing costs for Victorians.
“Alarmingly, the proposed regulations would mean that 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 argued that mandating households to switch to electric could cost them over $30,000, exacerbating the cost-of-living crisis for struggling Victorian families.
“The Allan Labor government’s reliability on gas cookers is also questionable. Premier Jacinta Allan instructed Labor MPs to vote in favor of a Bill that granted the government the authority to ban any reticulated gas connections and appliances, including gas cooktops,” he stated.
Davis asserted that the Liberals and Nationals strongly oppose Labor’s gas ban.
“The future of restaurants and commercial gas users remains uncertain as Labor continues to deny Victorians the choice they deserve,” he added.
The government’s official statement comes after Allan reassured Victorians in September that they can continue using gas stoves.
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