13 December 2024
A gas ban at the expense of Victorian industry
AGIG is deeply disappointed at the Victorian government’s recommendation to ban gas appliances in Victorian homes, imposing significant upfront and ongoing costs across the Victorian economy.
AGIG CEO Craig de Laine said the policy would have potentially significant and immediate financial impacts for all gas customers, especially the remaining industrial and commercial users on the network whose operations and livelihoods depended on access to gas.
“Victoria’s vitally important commercial and industrial businesses are dispersed across the length of the gas network, meaning the infrastructure footprint would stay the same but those who remain on it will have to pay significantly more to access it.
“Despite the exemptions for some businesses in the government’s recommended proposal, we estimate that network costs to all businesses would increase, inflicting financial pain on the very customers this policy says it is designed to help.”
Mr de Laine said the policy proposal shows a lack of understanding about how energy networks operate, the costs of market intervention and who pays for them.
“It is incredulous that the government could recommend a policy that is so detrimental to industry and investor confidence just days after its Economic Statement promises to make Victoria a better place to do business and calls for more investment in gas.”
Mr de Laine said the policy recommendation was also at odds with the cost-of-living crisis and overlooked the financial burden on residential gas customers who would be required to pay for significant upgrades to their homes as a result of a government policy, at a time when many cannot afford it.
“Our residential customers tell us they don’t want to pay tens of thousands of dollars to change out appliances, rewire and renovate their homes at a time of the government’s choosing and at significant cost – they like using gas and they want the right to choose the appliances they have in their homes.”
AGIG will make a submission to the Regulatory Impact Statement process, noting the government’s decision to set the consultation period over the Christmas and New Year break.
Background
AGIG owns, operates and invests in infrastructure which delivers gas across Australia.
This includes the Australian Gas Network and Multinet Gas Network in Victoria - the two major gas networks which deliver gas to around 1.3 million homes across the state and serve around 600 major industrial customers and 40,000 smaller commercial operations. Both networks are fully regulated and overseen by the independent Australian Energy Regulator, which determines the costs that are paid by gas customers for the initial construction and ongoing maintenance of the gas network.
AGIG is leading the Australian renewable hydrogen industry as the owner of the largest operating electrolyser in Australia, Hydrogen Park SA. Hydrogen Park Murray Valley in Victoria is currently under construction and several other renewable gas projects are also in development in Queensland and New South Wales.
AGIG has a Net Zero Ambition to achieve net zero emissions in our own activities by 2050 and to enable renewable and carbon-neutral energy solutions for our customers, including through supporting renewable gas in our networks.
For Further Information Contact
Rachel Cameron, Head of Corporate Affairs
M +61 425 199 184
