Victoria’s opposition has vowed to scrap Labor’s gas appliance ban within 100 days of winning the upcoming election, amid claims the contentious ban adds $15,000 alone to new home builds.
The ban on gas has been modelled to cost households up to $300 a year, and projected to cost the largest commercial operations up to $111,000.
“Victorians should decide how they cook their meals, heat their homes and run their businesses – and under a Liberal and Nationals Government, they will,” opposition leader Jess Wilson said.
Ms Wilson claimed the gas ban was adding up to $15,000 to the cost of a new home and pushing up energy bills.”
The current ban dictates that from January 1, 2027, all new homes and most commercial buildings must be all-electric.
From March 1, 20227, domestic hot water systems that need replacing must be replaced with an electric unit.
Gas stove and heating systems can be replaced with gas systems.
The state government offers a $140 discount on induction cooktops.
Through an approved installer list, the government also subsidises energy efficient reverse cycle air conditioners. Modelling from the government says induction cooktops save up to $400 a year, while the $1610 aircon subsidy covers machines which will save $460 a year in power bills.
But the all-electric mandate adds $15,000 to the cost of new home builds, one of the country’s largest builders says.
Simonds-Group chief executive, Rhett Simonds, said people should get to choose between electric or gas.
“Moving to all-electric could add up to $15,000 to a new home build. We should be removing barriers to home ownership, not adding them,” he said in a statement accompanying Ms Wilson’s media release.
“Families should be able to choose gas or electricity based on their needs, their preferences and their budget.
“We’re supporting the commitment to restore that choice. Our position is simple: give Victorians choice, and keep the cost of building a home within reach.”
Modelling commissioner by the Australian Gas Infrastructure Group shows the current $608 distribution charge for houses with gas cookers, hot water and heaters could go up between $142 and $267 a year.
A large manufacturer currently paying $250,000 per annum in distribution charges could see their bill go up $59,000 to $111,444 a year.
The modelling, based on Victoria’s incoming gas bans, says gas prices will go up at least 20 per cent - driven by reduced demand making suppliers hike prices.
Victorian Energy Minister Jaclyn Symes said earlier this month the policy was designed to lower household power bills, not fatten profits for the gas industry.
“By reducing demand for gas in households, we’re keeping down power bills and reserving supply for industry – our measures have already avoided gas shortfalls forecast by AEMO (Australian Energy Market Operator),” Ms Symes told reporters earlier this month.