Industry responds to building electrification proposal

The Department of Transport and Planning (DTP) and Department of Energy, Environment and Climate Action (DEECA) released a Building Electrification Regulatory Impact Statement (RIS) exploring options and pathways to electrify all new residential and some new commercial buildings across Victoria.

Under the Government’s preferred option, it proposes electrification of all new and existing residential buildings (excluding existing residential cooking) and all new commercial buildings.

Existing gas appliances such as heating and hot water systems in homes would have to be replaced with electric appliances at end-of-life.

With the RIS seeking public feedback, a coalition of leading Victorian industry bodies, including the Victorian Chamber, is urging the State Government to reconsider its preferred option.

The proposed gas ban would saddle Victoria’s 70,000 gas-reliant businesses with significantly higher operating costs into the future, as they absorb the network costs previously shared across all gas users. This policy would also deter new energy-intensive businesses, undermining opportunities to stimulate economic growth.

The RIS will increase costs for large and small businesses, stifle crucial gas investment and leave Victorians facing higher energy bills and reduced energy security.

This proposal will materially impact business competitiveness and viability within Victoria.

Restricting access to gas, including renewable gases, will constrain new investment in gas infrastructure and production, which the Government itself has called for in this week’s Economic Growth Statement and has stated is essential for Victorian industry.

Victorian Chamber Chief Executive Paul Guerra said: “Today’s developments further add to the confusion and frustration around the role of gas in Victoria’s transition to net zero.

“The Victorian Chamber has repeatedly and consistently advocated for the State Government to reveal their energy roadmap to provide clear signals and direction to industry and consumers. We continue to wait while investment, reputation and supply dwindle, creating an energy crisis.

“It is imperative that businesses have their say on these proposals through the consultation period so that the Government understands the pragmatic and economic realities of their impact.”

The coalition includes the Australian Pipelines and Gas Association (APGA), Australian Gas Infrastructure Group (AGIG), Australian Energy Producers (AEP), South East Melbourne Manufacturers Alliance (SEMMA), Restaurant & Catering Industry Association, Master Plumbers Victoria.