Victoria’s energy policy is becoming more bizarre, inconsistent and illogical by the day.
Natural gas is widely recognised globally, nationally and in other states and territories as a reliable and cleaner fuel that can partner with renewables to lower emissions.
But Victoria’s contorted and contradictory positions on gas are undermining Australia’s energy security and transition to net zero.
Yesterday’s revelations about Victoria’s net zero road map phasing out some gas appliances while allowing others can only be described as policy on the run.
Granted, it is welcome news that existing domestic and commercial users will not have to replace popular gas stovetops with electric versions.
But it is bad news for these same people that gas hot water systems and gas heating appliances will need to be switched to electric versions at significant costs.
If that wasn’t confusing enough, the state has a third position towards gas appliances.
New residences are banned from having any gas appliances at all – even the stove cooktops which can be replaced in existing residences.
At a consumer level, the appliance bans rob users of the basic principles of choice and competition – and will lead to huge costs when they have to be replaced with electric models.
Frontier Economics data, released by the Gas Appliance Manufacturers Association of Australia, shows the cost of switching to electric is between $21,555 and $41,430 per dwelling, depending on the type and size of dwelling and appliance.
Gas has been an important, popular and reliable fuel for millions of Victorian homes and businesses for decades.
There are 2.2 million gas connections in Victoria and over 5.2 million residential gas appliances.
In terms of energy security and the environment, it makes little sense to shift them at great expense on to electric models – loading more demand on to the state’s fragile, coal-based electricity grid.
The state should instead be focused on unlocking new gas supply and firming up the power grid, with gas as a reliable partner to renewables – as other Australian jurisdictions are doing.
The move this week to legislate to allow offshore gas storage and help avoid forecast shortfalls is a step in the right direction.
But the ad hoc picking and choosing of someone’s appliances depending on what type of home they live in is yet another leap backwards for Victoria’s gas policy.
Peter Kos is the Victorian Director of Australian Energy Producers
