Victorian Minister for Energy and Resources Lily D’Ambrosio has released the 2024 Gas Substitution Roadmap Update and opened consultation on the Building Electrification Regulatory Impact Statement (RIS).
The RIS considers requiring gas heaters and hot water systems to be replaced with efficient electric alternatives when they reach end-of-life.
Consultation on the draft regulations for the Building Electrification Regulatory Impact Statement is now open to Victorians to provide feedback on how different electrification options could benefit them.
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The news was welcomed by the Institute for Energy Economics and Financial Analysis (IEEFA).
IEEFA energy finance analyst Jay Gordon says, “This is a sensible and expected step from the Victorian government to address future gas shortfalls. It will help conserve gas for sectors that need it most, while also saving consumers money.
“Compared to costly supply-side solutions, transitioning to all-electric homes actually reduces cost for consumers. Add on the fact that it will help Victoria meet its emission reduction targets, and it’s a no-brainer.”
Previous IEEFA modelling has found that ending sales of gas appliances in Victoria could halve household gas demand in as little as 10 years—making it a highly compelling option to cut bills, improve energy security and reduce emissions.
The state government’s preferred approach would target gas heaters and hot water systems that reach their natural end-of-life. It does not propose any new requirements for cooktops in existing homes.
“Heaters and hot water systems are by far the most energy-intensive gas appliances, and it makes sense for the Victorian government to start with those,” Gordon says.
“Our modelling found that a typical household could save $823/year on their bill by upgrading these appliances. Households that take the next step and switch to an induction cooktop could disconnect from the gas network entirely, saving an additional $353/year.
“In the long term, it’s likely that an increasing number of households will go all-electric. However, it will be important to support Victorians who face barriers to getting off gas, like renters.”
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Rewiring Australia also endorsed the Victorian Government’s proposed rule to phase out expensive gas appliances, which will lower energy bills and emissions for households across the state.
“Thanks to this policy, more Victorians will have lower energy bills and healthier homes,” Rewiring Australia CEO Dan Cass says.
“We back the Victorian Government’s plans to help households make smarter energy choices by only replacing gas heating and hot water with cheaper, electric alternatives.”
