Minister for Energy and Resources, Lily D’Ambrosio has released the updated Victorian Gas Substitution Roadmap (VGSR)– outlining the next steps for Victoria’s transition from fossil gas to electrical appliances.
Recognising that fossil gas is no longer the cheap and abundant energy source it once was, the average Victorian residential customer is now paying over $500 more for gas than they did less than two years ago – an increase of 35%.
As part of the Roadmap, families will benefit from an expanded Victorian Energy Upgrades program. From 2024, discounts will be available to support Victorians to upgrade to electric induction cooktops, helping people electrify their homes at a discounted rate.
Existing households that move to all-electric can save $1,700 a year, or up to $2,700 a year with solar installed – a 60% reduction in energy bills. It will also mean they no longer need to pay for their gas connection, saving them up to $400 a year.
The Labor government is set to complete a Regulatory Impact Statement (RIS) that will require industry engagement and public consultation on approach and timing, which will be conducted over 2024. The RIS will exclude some industries, including Victoria’s hospitality, large commercial, industrial and manufacturing sectors.
Environmental organisation, Friends of the Earth Melbourne welcomed the release of the second edition of the VGSR.
The first edition released in July 2022 explicitly named fossil gas and recognised the household and climate savings that can be achieved when households and commercial buildings switch from gas to renewable energy for heating, hot water and cooking. However, it fell short of describing a practical pathway out of gas for Victoria, the heaviest domestic gas using state in Australia.
“This document is a small step in a direction we should be running towards,” Friends of the Earth ‘No More Gas’ campaigner, Freja Leonard said.
“Following the release of the first Gas Substitution Roadmap we were so underwhelmed that we wrote our own version, the Community Gas Retirement Roadmap, offering 34 recommendations to remove gas from most common uses statewide.
“We are pleased that our longstanding recommendation to ban new gas connections for households has been in part adopted by government in the past months and welcome the prospect that this ban could be extended to other new buildings.
“We also welcome the addition of efficient induction cooktops to the Victorian Energy Upgrades program and note that subsidies for new gas appliances were removed from the VEU offerings this year. Without a prominent public information campaign most Victorians won’t even know these are an option.”
“However, Victoria’s leaky gas distribution system still urgently needs a plan to shut down in a way that is rapid, orderly and equitable. People are already switching from gas to renewable energy leaving those, like renters and low-income households, who aren’t in a position to disconnect from gas paying more in service charges to deliver an expensive, inefficient energy source to their homes.
“Through clever planning we can and must turn to energy efficiency upgrades and a shift to 100% renewable energy. We urgently need bold government action to help the state leave behind the hangover of bad gas policy as a matter of critical urgency.”