Gas appliances hooked up to the network will no longer be an option in the Territory by 2045. Photo: Miguel_SR.
Parts of Canberra’s gas network might start being switched off from the mid-2030s as the ACT Government considers what additional laws are needed to phase out gas appliances.
A discussion paper’s been released outlining potential regulatory options to transition away from fossil-fuel gas by 2045, including improving consumer information, strengthening rental standards and limiting new gas appliance installations.
Already, new gas connections cannot be installed in residential, commercial or community facility land-use zones.
Gas users will need to be completely electric before the network is shut off.
“The ACT Government is now considering if gas appliance regulation is needed to support the most effective and least-cost pathways to support priority households [to] electrify and reduce fossil fuel gas use ahead of phase network decommissioning,” the paper stated.
“Some sections of the network may begin to be shut off from the mid-2030s onwards.”
According to the Australian Energy Market Operator (AEMO), Australian household and commercial gas use is expected to be basically non-existent by 2050.
The ACT Government is concerned that, without regulating gas appliances, Canberrans could buy gas appliances they’ll then need to replace with electric options before the gas appliance has reached its end of life (known as a stranded asset), or could be locked into increasing costs for running gas appliances as more people leave the network.
“With some sections of the network potentially being decommissioned from the mid-2030s onwards, new appliances may only be useable for 5-10 years,” the paper stated.
“An average expected lifetime for gas appliances [is] around 12 years.”
The paper stated regulation could reduce the time, resources and risks businesses faced in the gas transition by limiting their options.
Giving the example of banning the installation of new gas space heating within two years, it could mean installers would now know when a stream of work would end, give appliance retailers a timeframe to run down their stock levels, and give network operator Evoenergy greater certainty on when and where the electricity network will need to be built out.
As for rental properties, the paper noted that breakdowns of appliances for hot water, cooking, heating and cooling have to be repaired or replaced as soon as possible. However, gas appliances tend to be cheaper than electric options.
“This cost factor, combined with the short timeframe for replacement decisions, means it can be easier for landlords to do like-for-like replacement for gas appliances,” it stated.
“This could be a key decision point for government to intervene, requiring replacement with an electric appliance instead.”
Regulation could also restrict replacing centralised systems in apartments by owners’ corporations.
Network-connected gas appliances identified as potentially regulated include household and light commercial options (such as space heaters, water heaters, cooktops and gas pool heaters) and larger or custom-built appliances used in industrial and commercial settings (such as hot water, heating, automotive spray booths, coffee roasting and backup generators).
Options include providing information at the point of sale (such as when plastic shopping bags were phased out), mandating transition planning for gas appliance work, regulating what licensed gas fitters can install, regulating standards for rental properties, and prohibiting gas installation when a network section is identified for decommissioning.
Banning the sale of gas appliances – while possible – is not the government’s preferred pathway.
“It has significant barriers to successful implementation, including enforcement, compliance, and interstate trade,” the paper noted.
Climate Change, Environment, Energy and Water Minister Suzanne Orr said all feedback would help shape a draft regulatory framework and guide future community consultation.
“The ACT has already made strong progress in transitioning away from gas, but there is more to do to support households and businesses, particularly renters and low-income households, through this change,” she said.
“The government will work with the community to understand the challenges and opportunities for homes, businesses, industry, and community groups, ensuring everyone benefits from the energy transition.”
Stakeholder consultation is open from 5 August to 16 September. For more information, or to provide feedback on the discussion paper, visit Everyday Climate Choices.
