19 January 2024
As gas prices continue to rise, the Victorian Government is helping Victorians reduce their reliance on expensive fossil gas – easing the cost-of-living pressures on families and businesses.
The Gas Substitution Roadmap outlines how Victoria will transition from expensive fossil gas to more affordable and modern electrical appliances. Fossil gas is not as cheap and abundant energy as it used to be – gas bills have increased by over $500 for the average Victorian household in less than 2 years. That’s a 35% increase.
You can take advantage of the Victorian Energy Upgrades program to save on your energy bills. It will offer discounts for Victorians who want to replace their gas cooktops with electric induction ones from the second half of 2024. This will help you electrify your home at a lower cost. If you go all electric, you can save up to $1,700 a year, or even $2,700 a year with solar panels – that’s a 60% cut in your energy bills.
By moving away from costly fossil gas, you will not only save on your energy bills, but also on your gas connection fees. You can save up to $400 a year by disconnecting from the gas network.
The Government has also stopped gas companies from charging high fees for disconnection and is cracking down on companies that lure customers into installing gas appliances, which will lock them into higher energy bills for years.
The Government is consulting with the industry on this issue, and will decide in 2024.
Supporting Victorians to transition to electric appliances
The Government is also doing more work to understand how it can support Victorians to switch to electric appliances when their old gas appliances need to be replaced – including in existing homes and some commercial buildings.
The Government will conduct a Regulatory Impact Statement (RIS) to assess how to do this. The RIS will involve detailed consultation with the industry and the public on the approach and timing, which will happen in 2024. The RIS will not affect some industries, such as Victoria’s hospitality, large commercial, industrial and manufacturing sectors.
Energy bill relief for renters
Renters will also benefit from the Government’s review of the minimum energy efficiency standards for rental homes. The review will start in 2024, and will include public consultation. The review will cover ceiling insulation, draught-sealing, hot water, heating and cooling. This will make rental homes more comfortable and cheaper to run.
Improving new builds
New homes needing a planning permit have to be all-electric from 1 January 2024. The Government will consult on whether to extend this requirement to all new residential dwellings and some commercial buildings in the future.
Working to deliver a cleaner, cheaper and stronger energy system
Victoria aims to achieve a cleaner, cheaper and stronger energy system. It has met its 2020 target of 25% renewable energy generation, and is on track for 95% renewable energy generation by 2035.
Find out more about our renewable energy future.
Page last updated: 06/02/24