‘More green tape’: Allan government’s energy compliance crackdown

Victorian homeowners could be forced to fork out thousands of dollars to replace broken windows, heating and gas cooktops with energy efficient appliances in a major government crackdown.

Victorian homeowners could be forced to fork out thousands of dollars to upgrade broken appliances with energy efficient models as the statewide crackdown on fossil fuels intensifies.

The Allan government is considering sweeping changes to minimum energy efficiency standards to force landlords and owners corporations to upgrade old appliances with environmentally friendly new ones.

The proposed changes could also impact owner occupiers who would be required to replace appliances, including gas cook tops, with energy efficient alternatives when they reach their end-of-life.

The controversial move, which could also affect owners of properties that are not currently subject to regulatory change - such as granny flats - has shocked industry experts.

The revelations were aired during an interview with Energy Minister Lily D’Ambrosio on Real Estate Institute of Victoria podcast, Real Estate Matters, which will be released on Friday.

The Allan government is considering expanding minimum energy efficiency standards for existing homes and rental properties.

Podcast host REIV President Jacob Caine questioned Ms D’Ambrosio about whether laws may be introduced to force landlords and owners corporations to switch to energy efficient appliances, including swapping out single glazed windows for double glazing.

“Do you envision a situation … (where) legislation might need to come, say for instance double glazing, where it gets mandated by the government?” he said.

Ms D’Ambrosio confirmed that the government was weighing up whether to expand the mandates, noting a review this year would flesh out the compliance crackdown.

“Whether it’s windows or other things I think will start to see an incremental move towards improving what the minimum standards are for a rental property, whether it’s an apartment building or a stand alone home,” she said.

“Should there be some minimum standards for ceiling installation, draught sealing, hot water heating and cooling – all of those are options for exploration.”

The government last year flagged that existing homes would be dragged into its quest for an all-electric-Victoria when it released its Gas Substitution Roadmap.

Under the plan, all gas connections were banned from all new homes from January 1 this year and several initiatives were introduced to assist with the shift to all-electric homes, including cheaper disconnection charges.

Premier Jacinta Allan and her government could force homeowners to replace old and broken appliances with often costly energy efficient alternatives. Picture: Luis Enrique Ascui

Ms D’Ambrosio, who argued Victorians could save thousands on their yearly power bills by making the switch, said property owners should see the additional compliance measures as “an investment rather than a cost”.

“This is a net positive,” she said.

Mr Caine said talk of further compliance measures would “probably send shivers down the spine of our property management members and our investment property owners”.

The real estate boss, however, said the need for the transition was “clear” and balancing the cost and impact of implementing higher standards was “critical”.

Gas Appliances Manufacturers Association of Australia president Ross Jamieson slammed the idea, saying the move would “punish Victorian households with large costs” at a time when they are being squeezed by cost of living pressures.

“GAMAA independent research estimates the household cost of replacing gas appliances with electric alternatives is between $5,000 and $40,000, depending on appliance and home size,” he said.

“This policy would be more green tape for Victorians and would strip consumers of choice and flexibility when it comes to cooking, heating and bathing in their own homes.”

The shift would be “catastrophic” to Victorian gas appliance manufacturing, he added.

The government will consult stakeholders about the possible changes before the end of the year.