Victorian government accused of hypocrisy over its own gas usage

The gas supply contract comes as the government not only seeks to move households and businesses off gas, but aims to power itself with “100 per cent renewable” energy by next year.

Victorian Energy Minister Lily D’Ambrosio. Picture: NewsWire / David Crosling

The Victorian government is seeking tenders for gas supply to its own departments and agencies, offering a contract potentially worth as much as $100m, despite its policy of encouraging households and businesses to stop using the energy source.

The notice of intention to release a request for tender this month, issued via the “Buying for Victoria” tender website, comes as the government not only pursues its gas substitution road map, but also works towards a target for all government operations and facilities to be powered by 100 per cent renewable electricity by 2025.

The tender notice has prompted derision from the gas appliance manufacturing industry and the state opposition, which accuse the Allan government of hypocrisy as it surges households and businesses to shift away from gas, including through banning gas connections to new homes, and outlawing manufacturers providing rebates on gas appliances.

Recent past state purchase contracts for the same gas supply to both large and small sites across the whole of government – from departmental offices to schools and hospitals – total $85m, with the value of the tender likely to be higher than that amid predicted gas shortages in coming years.

The government’s plan to power all state government operations with “100 per cent renewable” energy by next year is also set to cost Victorians millions of dollars, with 60 per cent of the state grid currently powered by fossil fuels, and the renewable energy target dependent upon the purchase of carbon offsets.

The Allan government’s gas substitution road map seeks to encourage Victorian households and businesses to shift away from gas, including through banning gas connections to new homes, and outlawing manufacturers providing rebates on gas appliances.

The government effectively outsources this to Victorians through their power bills, with the Victorian Renewable Energy Target scheme requiring retailers to purchase energy efficiency certificates to offset their emissions, and the cost of those certificates passed on to consumers.

Gas Appliance Manufacturers’ Association of Australia CEO Ross Jamieson said the government tender for gas supply was a “clear acknowledgment that gas will play a crucial role in Victoria’s transition to clean energy, particularly in buildings where retrofitting is very expensive”.

“However, it is rather peculiar this liberty is not being extended to small businesses, renters and home buyers in Victoria,” Mr Jamieson said. “The government continues to roll out measures to force households and small businesses off mains gas and, in so doing, removing choice and competition, and potentially imposing high conversion costs on to those that can least afford them, while the government refuses to bear those high costs themselves.

“This hypocritical policy position is not surprising coming from a government that has refused to compromise when GAMAA presented a modest request for an additional two years to prepare before the ban of new gas connections.

“Their ideological stance against gas has already resulted in hardworking Victorians in the manufacturing industry losing their jobs, and has put small family businesses in the firing line. There is clearly one set of rules for the Victorian government and another for everyone else.”

Victorian opposition energy spokesman David Davis. Picture: NewsWire / Luis Enrique Ascui

Opposition energy spokesman David Davis said that given the surge in gas prices, the value of the government supply contract was “likely to surge well past $100m – not bad for a government that promised to be 100 per cent renewable by 2025”.

“The supply of natural gas is clearly essential for a wide range of government sites, but Labor and especially the minister, Lily D’Ambrosio, should stop pretending it’s not,” Mr Davis said.

“Gas has a significant role to play in supporting a shift to renewables and will remain absolutely essential for a wide range of industries; for years to come it will remain important for many government agencies.

“It is time Labor came clean and reversed their damaging gas bans. Labor is out of step with the Victorian community and … their federal Labor colleagues.

“Victorians don’t want to be left cold because of a lack of gas supplies following Labor’s decade-long ban on onshore conventional gas exploration.”

Energy Minister Ms D’Ambrosio’s office did not respond to a request for comment by deadline.