The Victorian government has announced the exclusion of gas cooktops from the government’s push on electrification, which will allow households the opportunity to choose if they wish to switch to electric appliances.
The Gas Substitution Roadmap, released in May, banned gas from new homes in the state and aimed to phase it out of existing homes by requiring households to replace old appliances with efficient electric alternatives, supported by rebates.
Commenting on the backflip, Premier Jacinta Allen said that Victorians could continue cooking with gas, with the government having listened to Victorians’ calls for certainty to be provided.
She added: “It also gives us the opportunity to have a conversation with the Victorian community about our future energy mix and our future energy needs.”
The announcement was welcomed by industry association Australian Energy Producers, which noted the initial proposed phase out some gas appliances ignored the fundamentals of the energy transition and robbed consumers of choice and competition.
However, it called for the Victorian government to reverse a new edict forcing residents and businesses to switch gas heating and hot water appliances to electric at significant cost.
Australian Energy Producers Victorian Director Peter Kos said gas had been a critical, popular and reliable fuel for millions of Victorian homes and businesses for decades.
He continued: “Victorians love cooking with gas and the stovetop proposal would ensure they can continue to use efficient and reliable fuel in their kitchens for as long as they want.
“But the proposal to not extend this principle of choice to gas heating and gas hot water appliances is illogical – this is why the ban on gas appliances in new residences must also be reversed.
“There are 2.2 million gas connections in Victoria and over 5.2 million residential gas appliances and shifting them at great expense on to a fragile, coal-based power grid does not make sense.”
Ross Jamieson, President of the Gas Appliance Manufacturers Association of Australia (GAMAA), also welcomed the Victorian government’s “first step towards a more commonsense approach to gas”.
Jamieson said: “This commonsense approach is a small but important win for Victorian households, but unfortunately it remains silent on the forced conversion of hot water and space heating systems.
“We know from the proposed new minimum energy efficiency standards for rental properties that changes could lead to struggling households forking out up to an additional $65 a week in rent to save less than $10 a week in energy bills.”
The new standards for rental properties would from October 2025 force the replacement of appliances that have reached end of life with electric appliances.
Research by Frontier Economics, which was included in GAMAA’s submission to the Victorian government, has shown the changes could result in up to $27,000 in additional costs for rental providers.
The costs would then likely be passed on and result in rent increases of up to $3,400 per year for up to 280,000 Victorian rental properties.
Jamieson called on the Victorian energy minister to reconsider the proposals and allow for replacements with high-efficiency (5 Star or higher) appliances which would save tenants overall around $180 per year.
He said: “This option would not only save money for tenants but reduce emissions by around 25 per cent without the need to increase rents or downgrade heating.”
Less than 2 per cent of Australia’s carbon emissions are generated from gas use in residences and small businesses.
The Frontier Economics research is based on a typical three- to five-bedroom freestanding rental home with gas hot water and ducted heating.
Update:
On Thursday, the Australian Pipelines and Gas Association (APGA) said the Victorian Government has introduced legislative amendments in the state’s building codes to ban gas appliances, including cooktops, from all existing Victorian homes despite the supposed backflip.
“It is deeply disappointing that the Victorian Government signalled one thing through the media on Monday, and by Wednesday had introduced legislation to do the exact opposite,” APGA said.
The Building Legislation Amendment 2024 gives the Victorian government the ability to:
- Ban new or extended reticulated gas connections; and
- Ban the installation or replacement of gas appliances, including cooktops, on the reticulated network.
If the Bill is passed, the Victorian government will be able to enforce gas appliances bans for every new and existing Victorian home without facing any further scrutiny in the Victorian Parliament.
