Media release: Vic Government’s rethink on gas ban recognises Victorians want choice

The Victorian Government’s partial backdown on its proposed ban on new gas appliances is welcome acknowledgment that Victorians want choice for their homes and businesses, but more needs to be done to address gas shortfalls facing the state, Australian Energy Producers Victorian Director Peter Kos said.

“This is a welcome and pragmatic shift from the wider gas appliance ban the Victorian Government proposed earlier this year, which would have increased costs for households and businesses, stifled crucial gas investment and left Victorians facing higher energy bills and reduced energy security,” Mr Kos said.

“It shows the Government has heard the clear message from households and industry that gas remains vital to Victoria’s energy security and that Victorians want to keep using gas.

“However, the plan to force homes off gas hot water and banning gas connections in new commercial developments further adds to the Government’s mixed messages on gas and does not address the urgent need for more gas supply to avoid structural shortfalls forecast for Victoria from 2029.”

Mr Kos said Victoria’s gas industry is committed to bringing new supply to market, but needs evidence-based energy policy that recognises the long-term role of gas in Victoria’s energy mix to encourage investment in new gas exploration and development.

“Victoria has vast untapped gas reserves in Gippsland and the Otway Basin. The Government should work with industry to unlock this opportunity and ensure Victorians continue to have reliable and affordable energy,” Mr Kos said.

Australian Energy Producers’ submission to the draft Regulatory Impact Statement highlighted the critical role of gas in Victoria’s energy mix, with over 2 million homes and businesses connected to the gas network. The natural gas industry employs over 40,000 Victorians and contributes $22 billion to the Victorian economy each year.