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While the time frame remains up in the air, the shift away from gas as a domestic energy source is unavoidable. If you have a gas appliance, at some point you’re likely to make the switch to electric.
Yes, the thought of it may be annoying, but chances are it could save you thousands of dollars.
Evidence is mounting that transitioning to electric appliances will lead to major savings on your energy bill.
Data from the Institute for Energy Economics and Financial Analysis (IEEFA) indicates an average household would save about $1200 each year if it replaced its gas appliances with efficient electric alternatives at the end of their life.
What about the argument for gas?
“The cheapest upfront appliances are usually basic electric ones, but their higher running costs mean they could cost you a lot more over time,” says infrastructure supplier Australian Gas Networks.
“Natural gas appliances can have lower running costs for all but the smallest households. In most areas natural gas gets cheaper as you use more, which suits medium and larger households.”
Gas supply… going, going, gone?
While gas supply shortages will impact users throughout Australia, the Australian Energy Market Operator (AEMO) has forecast Victoria may face a long-term supply shortfall by 2027 – that’s just three years away.
The IEEFA report states the supply shortage for the southern states would be driven by the rapid depletion of fossil gas reserves in Bass Strait.
When should you switch from gas to electric?
For many Victorians, the decision has already been made. As of 1 January 2024, new homes including apartment buildings are prohibited from connecting to gas.
But it’s worth noting there are some developments the prohibition doesn’t apply to. Learn more about Victoria’s gas connection prohibitions.
For the rest of us, there’s no urgent action required to switch away from gas. Sustainability website RenewEconomy suggests only replacing your gas appliance once its lifespan is up. Their recommendation would then be to choose an electric appliance, even if gas appliances are still on the market.
Bottom line
In Australia, it’s looking like we’ll be out of gas at some point. Your best option is to plan now for the future and that includes deciding if switching to electric appliances is a cost effective decision.
And when that day comes along – when you no longer use gas appliances, remember to contact your supplier to close your account.
Go deeper:
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