Future of gas hot water systems and heaters unclear

People with existing gas cooktops won't be forced to go electric in Victoria. (Dan Peled/AAP PHOTOS)

People who need to replace gas cooktops in their homes will not be forced to switch to electric in Victoria, but the future of other gas appliances remains unclear.

Premier Jacinta Allan said there was a need to clarify a ban on gas connections to new homes and government buildings doesn't apply to existing gas cooktops.

The ban took effect from January 2024 as part of the government's plan to reach net-zero emissions in the state by 2045.

Ms Allan said gas was a diminishing resource and households would be encouraged to replace existing stoves with electric, as public consultation on the issue started.

Victorian Premier Jacinta Allan (file image)
Jacinta Allan says households will be encouraged to replace gas stoves with electric appliances.

"Victorians can continue to keep cooking with gas on their existing gas stove and if they need to replace it, they will be able to do so," the premier told reporters on Monday.

She would not be drawn on whether households needing to replace gas hot water systems or heaters would eventually be forced to go electric.

"We're being very clear that this is about about (cook) tops and stoves," she said.

Rewiring Australia, which claims to represent energy consumers and advocates for electrification, described it as a "temporary delay" to all Victorian households eventually going all electric.

“It makes no economic sense for households to keep one gas appliance because they have to pay the daily connection charge as if the whole house is using gas," executive director Dan Cass said.

There's been mixed responses from industry, with Gas Appliance Manufacturers Association of Australia president Ross Jamieson saying clarity around stovetop rules showed commonsense.

Australian Energy Producers Victorian director Peter Kos said keeping the ban for new builds was "illogical".

A gas heater (file image)
The long-term future of gas heaters in Victoria has not been revealed.

It comes as the Victoria government prepares to introduce new legislation to parliament to support offshore gas storage, which Ms Allan said would provide certainty to the gas industry.

The energy market operator has previously warned there is a need for more gas supply in Victoria over concerns consumption will outstrip availability.

It found total available supply would fall 48 per cent between 2024 and 2028 and there would be a higher chance of outages.

Earlier this year, the government approved the state's first new gas extraction project in a decade near Port Campbell, close to the Twelve Apostles tourism destination.

Opposition energy spokesman David Davis said there was "chaos and confusion" over the government's gas policy.

"The government has said you can use gas with your cookers, but the fact is the government hasn't changed its position on heating, on hot water," Mr Davis said.

"It hasn't stepped back from its ban on gas."

He said the government should have introduced legislation impacting gas storage much earlier, and was waiting to see details of the law.

Greens leader Ellen Sandell criticised the government for making a "cowardly political decision".

“We don’t need any new gas. Australia already exports far more than we’d ever need," Ms Sandell said.

"We should be focusing on supporting people to move to electric cooking and heating, which works just as well and is a lot cheaper and cleaner.”

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