Plumbers warn of price spikes, blackouts, job losses under green transition

A government-led push to electrify millions of Australian homes and businesses by replacing gas appliance will trigger job losses and energy price spikes, plumbers warn.

Gas fitters Zack Armstrong 31, Matthew Venz 29, owner Kent Vickers, and Liam Taylor 23 at QLD Industrial Gasfitting Sevices, in Meadowbrook, Brisbane.

A government-led push to rip out gas appliances and electrify millions of Australian homes in order to hit renewable ­energy targets will trigger job losses, energy price spikes and the premature shutdown of billions of dollars worth of gas assets, plumbers have warned.

Amid declarations the ACT’s imminent ban on gas for new homes and businesses was ­“insanity”, Master Plumbers Australia and New Zealand, the peak body representing the trade, has ramped up calls for governments to invest in green gas and will launch a national campaign against electrification.

The Albanese government wants to transition about five million homes off gas, investing $1.6bn to help low-income households and businesses install ­energy efficiency measures such as solar panels and electric appliances as part of a sweeping electrification package in the budget.

MPANZ chairman Tom Martin said the government was “throwing away” opportunities provided by biogas alternatives and that consumers were being forced into using electric appliances against their will.

The plumbing sector would be heavily affected in a transition ­towards renewables and the ­nation was at risk of energy price increases, reliability problems and blackouts if it moved off gas too quickly, he said.

“The NSW network is already stretched and Victoria has a huge gas network and obviously the ­existing system was never ­designed to take the load that will be needed to push through it in order to get rid of gas,” he said.

“Any government that is ruling out green gas as a possible solution to decarbonising our energy system is missing out on a real opportunity. They are burying their heads in the sand by choosing to go the 100 per cent electrification route even though there is not enough evidence to support that.”

State and territory governments are providing incentives for households to phase out gas, with the ACT implementing the strongest reforms by pledging to ban all new gas connections from November.

Victoria has also unveiled a “gas substitution roadmap”, which aims to encourage about two million households to use alternatives to gas in a bid to halve its carbon emissions by 2030.

In a submission to the ACT government, MPANZ warned its ban on gas would have a significant impact on the $1bn plumbing ­industry. It said ACT modelling on the gas ban “specifically excluded the fact that apartments or townhouses, or those who are renters, are unable to install solar” and provided no insight into the planned increase of apartment complexes over the coming decades, with a projection of 700,000 residents by 2056.

Master Plumbers Association NSW chief executive Nathaniel Smith said “thousands and thousands” of jobs would be lost, and companies specialising in gas ­fittings would be forced to shut. He said ACT’s move was ­“absolute ­insanity”.

Gas industry sources said there were significantly more households choosing to connect to gas than disconnect, with about 80 per cent of new homes in the ACT having gas despite the government attempt to ban it. “Gas fitting is a huge component of plumbing, not just in terms of heating, for cooking in restaurants, catering services and large buildings, in terms of boilers to heat up hot water, so there’s a hell of a lot involved,“ Mr Smith said. “Electrification all sounds great on paper but when the rubber hits the road there could be some huge problems with this ­policy direction.”

Brisbane plumber Kent ­Vickers said the industry was facing a misinformation campaign that would ultimately result in less choice for consumers.

“Gas has been portrayed by the electrical industry as a product which is dirty and not renewable,” he said. “Biogas is a natural gas which will be 100 per cent renewable. The electrical industry has embedded itself (in the debate) by saying the only way we can achieve our carbon goals is to ­electrify, and it’s just not true.”

Electrical Trade Union acting national secretary Michael Wright said a move to electrification would increase demand for plumbers, with jobs created as ­hot water systems were replaced.

“Electrification will drive a surge in demand for plumbing work as millions of heat pumps are installed and hot water systems are modified,” Mr Wright said. “All the early evidence is that demand for plumbing is growing at the same rate as demand for electrical trades.

“Australian cannot train enough people in either of these disciplines fast enough.”

A spokesman for Energy and Climate Change Minister Chris Bowen said Labor’s electrification package would offer consumers more choice, put downward pressure on bills and reduce emissions.

Electrification advocates argue ­ the move off gas will create “tens of thousands” of blue-collar jobs. A Rewiring Australia spokesman said internal research had found the average family would save $3000 to $5000 a year by 2030 by replacing “expensive fossil fuels with a combination of clean power from the grid and rooftop solar”.

Greens leader Adam Bandt ­ acknowledged workers must have job and pay security during the transition. The Greens have been advocating for stronger incentives to help people transition off gas.

“It beggars belief that anyone could suggest we are transitioning to renewables too quickly,” Mr Bandt said. “We are transitioning far too slowly and losing our opportunity to scale up as a renewable superpower.”

Opposition energy and climate change spokesman Ted O’Brien said Labor’s push to phase out gas would undermine industries.

“The Albanese government’s ideological approach to energy has Australia hurtling towards a catastrophic supply crunch in coming years, as prices skyrocket, the risk of blackouts rise and the economy weakens,” he said.

Gas Energy Australia chief executive Brett Heffernan said about two million Australian households relied on LPG for heating and cooking, and urged the government to consider green gas alternatives such as biogas.

“With the independent Australian Energy Market Operator belling the cat on looming power shortfalls and potential major blackouts, gas will be an important complement to delivering reliable, affordable energy,” he said.