The Victorian Government’s proposed Gas Substitution Roadmap has met with some backlash.
The Gas Substitution Roadmap aims to help the state navigate the path to net zero and is currently open for public consultation until 7 February 2025.
Australian Energy Producers have pushed back against this plan in a media release and said the State Government is sending mixed messages that are driving away critical gas investment.
In a media release, Australian Energy Producers Victoria director, Peter Kos, said the proposed plan will rob Victorians of choice and increase the already existing 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,” he 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.”
According to Australian Energy Producers, existing homes would have to replace broken-down heaters and water units with the electric version from as early as 2026 under the plan.
Ai Group Victorian head, Tim Piper also said that while the plan has some merit, the Victorian government needs to take a step back and have a more pragmatic review of the plan.
Piper outlined three key issues he had with the plan being fixing how gas network costs are recovered, that electrification won’t work for everyone and the proposed start date of January 2026.
"Shrinking natural gas use is inevitable. Natural gas has been getting scarcer and more expensive and the status quo is painful for gas users and something has to change,” he said.
“Electrification makes financial sense for some energy users while renewable gases are essential for others.
“The State runs big risks if it steps too hard on the accelerator, however.”