‘Any changes could be disastrous for Victoria’s hospitality sector,’ Wes Lambert says

The Australian Restaurant & Cafe Association has warned tens of thousands of Victorian businesses will suffer if the state government pushes ahead with its plan.

Victoria’s restaurant industry is warning the Allan government that any move to ban gas appliances from existing homes will threaten the viability of the network, and new shocking data reveals the cost of homeowners going electric would be $18,000 and $36,000 per house.

The Australian Restaurant & Cafe Association chief executive Wes Lambert said the industry “supports sustainability” but warned tens of thousands of businesses would suffer if the state rushed the move to phase out gas.

“Any changes could be disastrous for Victoria’s hospitality sector,’’ he told the Herald Sun.

“If they plan to ban gas by 2030 we believe it will be nearly impossible for businesses to convert to electric, it will require lengthy council approvals and in addition could lead to clashes between landlords and businesses about who will bear the cost of converting.”

The plea comes at the same time that new data shows just how much upgrading homes to electric will cost Victorians.

Australian Restaurant & Cafe Association chief executive Wes Lambert.

Data based on quotes from plumbers shows that a two-bedroom unit with gas cooking, gas heating and water would cost $39,000 before rebates were deducted.

Smaller houses may cop higher costs due to space constraints, making them more difficult to retrofit.

A three-bedroom house that already had an electric heater but needed hot water and gas cooking would cost $18,439 upfront. A five-bedroom home with all appliances replaced would cost $36,800.

Master Plumbers Victoria chief executive Peter Daly said forced conversion would be a huge impost on Victorians.

“The Victorian government says that all households will save on energy bills by going all-electric, but in reality, no two homes are the same,” he said.

The Australian Restaurant & Cafe Association says ‘we believe it will be nearly impossible for businesses to convert to electric’. Picture: iStock

“These real-world case studies indicate that the true costs of switching can be far more than the government figures claim.

“Some consumers will have to wait many more years, even decades, for any energy savings to pay back what they pay out in converting to all-electric.”

The state is currently considering the future of gas under the Gas Substitution scheme.

In September, Premier Jacinta Allan announced that stove cooktops in restaurants and existing homes will be exempt from the electric push as part of their gas road map, but all new homes must have induction cookers.

However, Ms Allan faces allegations of deceiving and misleading the public in Victoria regarding the future of gas, following the discreet introduction of new legislation to parliament.

The Building Legislation Amendment and Other Matters Bill 2024 contains clauses permitting the regulator to prohibit gas connections for all new homes.

Additionally, the regulator has the authority to prevent plumbers from installing or replacing gas connections in existing homes.

The state claim the law was passed so it could carry out consultation on the plan, but the law means the regulator can now make the choice without parliament having a say.

Gas advocates argue that the government is subtly eliminating the use of gas by stealth, effectively choking the network.

Many restaurants are hesitant to make the switch to gas due to the expenses involved in installing induction appliances and the need to adapt cooking techniques and recipes to suit the new stovetops.

Mr Lambert said industry was “sceptical and confused” by the legislative move.

A Victorian government spokesperson said: “Gas is part of our energy transition, but supply is dwindling and prices are going up – doing nothing is not an option.”

“We’re securing more gas supply and helping families and businesses that can go electric slash their power bills, helping reduce demand for gas which frees up supply, making sure there is enough to go around for industries that can’t make the switch.”

Opposition spokesman for Energy, Affordability and Security, David Davis said “so many restaurateurs and chefs make it clear that gas is integral to their cooking”.

“Labor’s failure over 10 years to secure more gas supplies is putting Victoria’s economy and energy supply at risk and risks denying fundamental choices for households.”