Households, businesses and the environment to benefit as Victoria moves decisively off gas

Environment Victoria has applauded the Allan government’s decision to end Victoria’s unsustainable reliance on polluting methane gas in homes and businesses.

The new regulations announced today will help to relieve the rising cost pressure on households and businesses from increasingly high gas bills and help Victoria reach its emissions reduction targets.

The regulations will mean every new dwelling in Victoria will be built to efficient electric standards – saving households around $1500 annually on energy bills – savings that can be doubled if solar and batteries are added to those homes.

The reforms will require most new commercial premises in the state to be all electric, providing a clear signal to the construction industry and ensuring businesses aren’t saddled with costly and inefficient services. They will also mean expensive, outdated hot water systems will no longer be installed in Victorian homes from 2027, but will instead be replaced with more efficient electric systems.

There’s also good news in this package for renters – the upgraded minimum standards for rental homes will give tenants access to cost-effective heating, cooling and hot water as well as better insulated, less draughty homes, saving an estimated $1000 per year. Gas safety checks will also be a legal requirement for rental homes, a crucial move to protect renters from carbon monoxide poisoning from faulty or badly-installed gas appliances.

The Greens helped secure critical funding to make today’s announcement possible, including $20m to implement the minimum rental standards and support industry to transition to the manufacturing of efficient electrical appliances.

Today’s announcement stopped short of phasing out existing gas space heaters – the biggest gas guzzlers of all – but thousands of Victorians are already making the switch to efficient electric options every month, taking advantage of impressive Victorian Energy Upgrades incentives of up to $8000.

Jono La Nauze, Environment Victoria’s CEO said:

“The Allan government is taking decisive and necessary action in phasing out polluting methane gas from Victoria’s homes and businesses – vital steps on our clean energy transition that will help Victoria reach its emissions reduction targets.

“Since first announcing plans to replace outdated gas appliances in Victorian homes with efficient electric appliances, the gas industry has launched a massive PR campaign to protect its own profits at the expense of everyday Victorians’ health and hip-pockets.

“This two-year PR campaign saw Australian Gas Networks sponsoring Masterchef peddling false claims about ‘renewable gas’, buying front-page advertorial space in the Herald Sun newspaper, and pouring cash into deceptive advertising in an attempt to hoodwink everyday Australians and block the Allan government’s sensible and practical measures to protect consumers.

“Today’s announcement shows the Victorian government is willing to put the interests of households and business owners ahead of wealthy gas corporations, while improving conditions for renters, slashing household energy bills and continuing Victoria’s transition away from polluting methane gas.

“Victorians moving into new dwellings can rest easier knowing their families will not be exposed to indoor gas pollution – this will reduce rates of childhood asthma and provide much healthier homes for our families.

“It’s important to also recognise the critical role played by the Greens in securing $20m of funding for the roll out of minimum rental standards and to support industry transition to the manufacturing of efficient electrical appliances.

“Today’s announcements are vital steps towards Victoria’s clean, electric and renewable energy powered future, but they do leave some unfinished business.

“The Allan government needs to follow through with further work to ensure that all social housing tenants will benefit from better rental standards. They also need to keep pace with the everyday Victorians already leading the way in shifting from inefficient gas to efficient electric heating and cooling.

“The new regulations represent a significant step towards Victoria’s clean energy future, heading off completely unnecessary and dangerous gas industry expansion.”