Gas networks must act now to avoid a death spiral in Victoria
The Andrews government's decision to outlaw gas connections on new homes and public buildings from January 2024 has put networks on the counteroffensive.
The Victorian government’s decision to ban gas connections in new homes and public buildings will have minimal immediate impact on gas demand. But it sends a powerful signal of the economy’s future direction and how much value it will place on reticulated gas networks. That is, not very much.
The state’s energy policy direction will, over time, threaten the viability of gas distributors, especially if the moratorium extends to new commercial premises and large numbers of consumers retrofit their homes with electric appliances and choose to disconnect from the gas network.
“This is much more of a signal for everyone who is about to do a capital allocation that Victoria does not want investment in fossil fuels going forward,” Climate Council energy transition councillor Greg Bourne said.
Victorian Minister for Energy and Resources Lily D’Ambrosio said new homes and residential subdivisions would no longer be able to connect to gas networks from 1 January 2024, and new public buildings such as schools and hospitals would follow suit.
