Energy retailer Momentum Energy has unveiled a program that will see it incentivising some of its own customers to disconnect from gas, following a landmark decision by the Victorian Government to phase out gas in new homes from January 1, 2024.
Momentum Energy will cover the gas abolishment fee of $242 for Victorian customers who work with Melbourne-based business Goodbye Gas to fully electrify their homes.
Related article: Victoria to phase out gas in new homes from 2024
The abolishment fee of $242 (including GST) will be paid as a credit on the customer’s final gas bill and only applies to existing gas customers who engage with Goodbye Gas to fully electrify their homes.
Momentum Energy is the mainland retailer of Hydro Tasmania, Australia’s largest generator of renewable energy. Momentum has around 130,000 electricity customers in the National Energy Market and around 70,000 gas customers in Victoria.
“It might seem strange for a gas retailer to be incentivising its own customers to transition away from gas, but Momentum wants to see more of our customers living fully electric lives—for their wallet, for the planet and to support Australia’s net zero carbon emissions goals,” Momentum Energy managing director Lisa Chiba said.
“Going all-electric—particularly when it’s combined with adding solar panels—is one of the most impactful changes individual consumers can make to help the planet.
“This is an entirely voluntary program and we will continue to support our customers who keep using gas. But given the long-term shift to decarbonise the grid, the argument for electrification will get even stronger as this becomes a reality.”
Goodbye Gas director Peter Steele said it was a significant development for a mid-sized retailer like Momentum to be encouraging its customers to switch from gas.
“Momentum Energy’s forward-thinking offer removes a key cost barrier—the abolishment fee—and we are excited to be supporting their customers to make the switch,” he said.
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According to Rewiring Australia, the average running costs of gas and petrol homes is $5,300 per year, while an electrified home with rooftop solar has running costs of about $1,850 per year. That covers electricity, heating and cooling, cooking and vehicle costs.
In terms of emissions, research by the International Energy Agency shows that just switching to a hot water heat pump from a gas boiler can reduce greenhouse gas emissions by 20%, even when running on emissions-intensive electricity.
