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Victoria’s plan to move away from fossil gas will benefit consumers

December 14, 2023

New measures increase support for transition to all-electric households

Key Takeaways:

Released today, the Victorian Government's updated Gas Substitution Roadmap outlines how Victoria can transition from expensive fossil gas to lower-cost electricity.

Victorian consumers will benefit from the latest updates to the plan, which will support households to fully electrify their homes, reducing their energy bills.

[14 DECEMBER 2023] (IEEFA Australia): Today the Victorian Government has released its updated Gas Substitution Roadmap – outlining how Victoria can transition from expensive fossil gas to lower-cost electricity. 

IEEFA Energy Finance Analyst Jay Gordon says: “Victorian households will benefit from these updates to the Gas Substitution Roadmap. The Victorian Government recognises going all-electric as the lowest-cost option. 

“Under this plan, Victoria’s rebate scheme for electric appliances will be extended to include induction cooktops. This will support households to fully electrify their homes, reducing their energy bills by avoiding unnecessary gas connection fees.” 

A broad range of research has shown that efficient electric homes will reduce costs for consumers. IEEFA analysis shows that Victorians could save $1,200 on their annual energy bills by going all-electric, and that a managed wind-down of gas networks is in the best interests of the energy system as a whole. 

Victoria had already announced that all new homes that require a planning permit will not be connected to the gas network from January 2024. In today’s Roadmap update, Victoria has outlined that it will consult on expanding this phase-out to encompass all new residential dwellings and some commercial buildings. 

“Broadening the ban on gas connections to all new residential dwellings and some commercial buildings makes sense and will benefit consumers” says Gordon. “As Victoria transitions off gas, it’s important to limit the continued growth of gas networks, not to invest in expanding them. New pipelines could quickly become stranded assets, with consumers left to pay the costs. 

“We have seen an increasing trend of Australian jurisdictions taking similar steps - including the ACT and several local governments in New South Wales.” 

The Victorian Government has also announced that it will investigate how to support Victorians to transition to electric appliances once their old gas appliances reach the end of their life – in existing homes and some commercial buildings. 

“Our IEEFA research has shown that supporting the transition to efficient electric appliances when gas appliances reach end of life is a logical next step for Victoria” Gordon says. 

“IEEFA’s analysis shows that this is one of the single most impactful actions Victoria could take to secure its energy supply and reduce residential emissions. For each year appliances are switched to electric alternatives at their end of life, Victorian consumers would avoid a cumulative $931 million in locked-in costs over the lifetime of those appliances.” 


Media contact: Anna Antoine [email protected] 0478 125 735 

Author contacts: Jay Gordon [email protected]   

About IEEFA: The Institute for Energy Economics and Financial Analysis (IEEFA) examines issues related to energy markets, trends, and policies. The Institute’s mission is to accelerate the transition to a diverse, sustainable and profitable energy economy. (

Jay Gordon

Jay Gordon is an Energy Finance Analyst at IEEFA, focusing on the Australian electricity sector. He brings experience in modeling Australia’s energy system transition, including investigating the role of the electricity sector in helping the broader economy transition towards a net-zero future.

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