Media release: Victoria’s mixed messages are driving away critical gas investment

The Victorian Government’s proposal to extend its gas ban to existing homes and new businesses will cost Victorians more and rob them of choice, while doing nothing to address the state’s looming gas shortages. 

The 2024 Gas Substitution Roadmap Update and consultation on the Building Electrification Regulatory Impact Statement released today shifts the cost burden to consumers, with little regard for Victorians already feeling the impact of cost-of-living pressures.

“This is more policy on the run that will push more households and businesses on to an already strained coal-based electricity grid and drive away investment in new gas supply,” Australian Energy Producers Victoria Director Peter Kos said.

“The Victorian Government should be focusing on providing Victorians with reliable, affordable energy. Instead, it is taking choice away from consumers for limited climate benefit while ignoring the fact that the best way to bring gas prices down is investment in more gas supply.

“Today’s announcement continues this government’s demonisation of gas and ignores the crucial role gas plays in backing up renewables to provide reliable, affordable electricity.”

Under the plan, existing homes would have to replace broken-down gas heaters and hot-water units with electric versions from as early as 2026 – and gas connections to most new commercial buildings would be banned.

“The Victorian Government’s mixed messages about gas are driving away investment in new gas supply that is urgently needed to avoid the state’s looming gas shortfalls,” Mr Kos said.

“This is an own goal by the government that only this week promised to fast-track new gas projects to ensure reliable access to gas for Victorian homes and businesses. 

“The gas industry is committed to bringing new supply to market, but the Victorian Government must first end its demonisation of gas and focus on bringing new supply online sooner.”

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