New industry research has found Victorian households face a $5.8 billion bill to switch from gas hot water and heating in their homes under an Allan government plan to force people to replace broken appliances with electric ones.

The new report by former head of NSW Treasury Michael Schur and public policy analyst Alastair Furnival claims the state’s strategy was based on “unreliable” analysis and likely to result in one in five job losses across the appliance manufacturing industry.