By LIAM DURKIN
SURELY the state government blasted Do It Again by The Chemical Brothers after this announcement.
“Let’s turn this thing electric”.
The state government has released its Gas Security Statement, outlining the steps it is taking to avoid gas shortfalls forecast by the Australian Energy Market Operator (AEMO) for south-eastern states by 2029.
At the crux of the statement is a move for new homes to be all-electric.
The state government says this move will save gas for industry and reduce household demand, meaning more of Victoria’s gas – the cheapest in the nation – will be used by Victorian manufacturers, supporting jobs and keeping local industry strong.
Under the reforms, it is estimated just under 12 petajoules (PJ) of gas will be unlocked every year by 2029.
By 2035, a total of 44 PJ annually is expected to be delivered – enough to meet 85 per cent of Victoria’s forecast industrial demand.
From January 1, 2027, all new homes will be built all-electric.
The state government says this will put around $880 per year back in the pockets of new homeowners, or $1820 if they have solar.
From January 1, 2027, all new commercial buildings (other than industrial, manufacturing and agricultural buildings) will also be required to be built all-electric.
There are no changes to rules regarding end-of-life replacement for gas appliances in all existing commercial buildings.
The use of LPG for households or business is also unchanged.
Under new regulations from March 1, 2027, when a gas hot water system reaches the end of its life, it must also be replaced with an efficient electric alternative such as a heat pump.
Electric hot water systems will save households around $330 a year, or $520 with solar, the state government says.
Electric hot water systems are also often cheaper up front than gas systems, with rebates available from the state government’s Victorian Energy Upgrades and Solar Victoria programs of up to $1400.
Gas hot water systems can still be repaired if they break down. Gas systems can also be temporarily removed and reinstalled during renovations.
There are no changes to heating for owner occupiers. There are also no changes to gas cooking in existing homes.
“The new building regulations and the housing and building standards will provide certainty for households and businesses, improve energy efficiency, and help to keep bills low,” Morwell MP and Minister for Housing and Building, Harriet Shing said.
Additionally, from March 1, 2027 at the start of a new lease, main living areas must also have an efficient electric cooling system.
Installing a reverse-cycle air conditioner will acquit both the heating and cooling requirements.
Every single upgrade a property may need under the new minimum efficiency standards is eligible for a discount under the government’s Victorian Energy Upgrades program.
Exemptions also apply, including if installation costs are too high or if there is not enough space.
The state government says rental standards have been set following extensive consultation to make sure they are achievable and keep costs affordable for rental providers.
Premier Jacinta Allan said the moves were all about securing the state’s gas supply into the future.
“Families will pay less on their energy bills, industry will get the gas it needs – and Victorian jobs are protected,” she said.
“It’s good for industry, workers, renters and families – we’re on their side.
“We are not just making sure Victoria has the gas it needs – we are reserving it for industry.”
“We’re taking action now to secure Victoria’s gas supply – not just for today, but for the decades ahead,” Minister for Energy and Resources, Lily D’Ambrosio added.
The Opposition however believe the changes are nothing more than a political stunt a year out from the next state election.
Nationals Member for Eastern Victoria Region, Ms Bath said while Victorians had been granted a slight reprieve, with household gas heaters not needing to be switched to electricity until 2027, old gas hot water systems must still be replaced with electric appliances from 2026.
The reprieve does not apply to rental properties. New builds remain banned from connecting to gas and commercial buildings must be all electric.
“Once again Victorians are being sold another stay of execution by an unpopular Premier,” Ms Bath said.
“The Nationals and Liberals have been telling Labor its war on gas is bad for Victorians. These changes are all about managing perception rather than listening to community.
“Labor has bungled the state’s energy transition and gas should remain an important part of the state’s energy mix. Labor’s flawed energy roadmap risks the security and supply of energy to households.
“The Premier needs to admit she is wrong on gas and work with the industry to ensure we have enough supply to help drive costs down over winter.
“Labor has developed cold feet with a state election on the horizon – these changes are a con.”
Ms Bath said in a cost of living crisis, it was unjust to force struggling households to switch to electricity while their bills keep rising.
“The Nationals back energy choice for Victorian households – not ideological government imposed mandates,” she said.
“Labor’s claim it is ‘slashing energy bills’ is disingenuous when Victorians know the reality is the opposite.”
