The gas industry faces accusations of launching a “scare campaign” in Victoria, as it pressures the state government to reverse a ban on gas connections in new homes. A document prepared by a lobbyist for the Australian Gas Infrastructure Group (AGIG) and shared with ministers, suggests annual household gas bills could rise by $100 if the ban is not overturned. However, the document reportedly does not provide evidence to support this claim.
From 1 January, all new homes and commercial buildings in Victoria will be required to run on electricity, rather than being connected to the gas network. The Victorian government anticipates this change could lead to annual savings of $880 for households, potentially increasing to $1,820 with solar panels installed.
AGIG, which is owned by a Hong Kong-led consortium, operates gas distribution networks and pipelines in Victoria. The leaked document, written by AGIG’s lobbyist Ken McAlpine, provides advice on how to change regulations and reverse the ban before the upcoming election. It also cites modelling suggesting the ban could lead to a 20% to 40% increase in network costs, primarily due to reduced demand and customer numbers.
Tony Wood, an energy and climate change senior fellow at the Grattan Institute, described the document as “clearly a scare campaign,” stating he does not understand why there would be any price increases. Jonathan La Nauze, chief executive of Environment Victoria, also agreed the document indicated a “scare campaign.” Victorian minister for energy and resources, Jaclyn Symes, stated the government’s position “has not changed.”