Victoria’s power plans ‘don’t stack up’

The gas industry says the key figure in the Andrews government’s Gas Substitution Roadmap ‘doesn’t stack up’.

Victorian Energy Minister Lily D'Ambrosio. Picture: NCA NewsWire / Luis Enrique Ascu

The gas industry has renewed its calls for the Andrews government to release the modelling behind its Gas Substitution Roadmap, arguing that even newly public Climate Council analysis demonstrates the key figures in the plan “don’t stack up”.

The Climate Council figures estimate the cost of replacing gas appliances with electric ones at $6700 to $12,900, resulting in electricity bill savings of up to $1000 a year, meaning that with government rebates it would take between seven and 13 years to receive a return on investment.

Gas Energy Australia CEO Brett Heffernan said the Climate Council calculations only took into account the cost of replacing appliances, and did not include other expenses such as electricity supply and wiring upgrades, removal of old appliances such as evaporative coolers and ducted gas heaters, and rectification of plumbing, brickwork, roofing and plasterboard in walls and ceilings.

Mr Heffernan cited independent modelling commissioned by Gas Energy Australia from Frontier Economics, showing the cost in fact ranges between $21,555 and $41,430 per dwelling, depending on type and size of dwelling and appliances used, when all necessary expenses are included.

“These are significant out-of-pocket costs for anyone, and 40 plus years to recoup your outlay is madness,” he said.

“It demonstrates, again, that the costs under the Victorian government’s Gas Substitution Roadmap don’t stack up. The key finding touted in the Roadmap claims switching to an all-electric home will cost homeowners $15,500.

“The Victorian government needs to come clean and immediately release its modelling so we can all see exactly what is being claimed and assess the data for ourselves. The government’s point-blank refusal to release its modelling invites more than a whiff of more unpleasant things potentially hidden from Victorian homeowners.”

Energy Minister Lily D’Ambrosio said it was “in the interests of fossil gas companies to exaggerate the costs of electrification and stand in the way of Victorians getting a better deal through going all electric”.

“Independent modelling from a variety of sources confirms that electrification is the cheapest option for supplying households with energy,” she said.

“That’s why we’re giving Victorian households and businesses greater choice and more support with rebates, subsidies and information on cutting energy costs.”

Mr Heffernan also expressed concern about the Roadmap’s failure to embrace developing technology and examine alternatives to replacing gas with electricity, such as hydrogen power.