Consumers want the choice of gas as all-electric homes become cheaper

Consumers want to choose how to power and heat their homes as the rising cost of living is making energy bills a hot issue.

Consumers want the power to choose not to have gas supplied to their new homes, rather than leaving the decision up to developers, prompting a fresh move to reform the state’s planning laws.

A gas connection to new properties is not mandatory in South Australia but many developers make it compulsory in new builds.

The South Australian Council of Social Service is concerned about the rising cost of living and locking households into higher energy bills.

Chief executive Ross Womersley said there was now clear evidence that all-electric homes were cheaper to run than combined gas and electric homes.

The Grattan Institute found that running a new all-electric Adelaide house would save up to $2183 over 10 years, compared with having gas cooking and hot water. The saving would go up to $5556 over 10 years if electricity was used in place of gas for cooking, hot water and space heating.

“However, developers of new residential estates are often including terms in sales contracts mandating gas connection,” he said.

“This deprives new owners of choice and locks in more expensive energy provision for those households.”

Legislation to address the issue was first introduced to parliament by former Greens MLC Mark Parnell in 2018, but it did not pass.

The Greens’ Robert Simms tried again last year and received widespread support in the upper house, but was unable to put the bill to the lower house before the state election.

Mr Simms last week reintroduced the Planning, Development and Infrastructure (Gas Infrastructure) Amendment Bill to parliament’s upper house and will bring it to a vote on Wednesday May 18.

“The practice of property developers mandating gas connection and gas use in new homes really locks South Australians into higher energy prices and higher carbon emissions,” Mr Simms said. “That is a cycle that the Greens are seeking to break.”

Energy Minister Tom Tom Koutsantonis said: “We will consider all legislation on its merits, and engage and consult with all relevant stakeholders before any decision is reached.”

Urban Development Institute of Australia (SA) chief executive Pat Gerace said the “vast majority” of consumers still wanted gas and he was concerned that legislative change could put that in jeopardy.

“House prices are rapidly escalating and the efficient delivery of broader network infrastructure in new and large developments is one key way to keep costs down for new homeowners,” he said.