The gas cartel’s continued push to destroy Victoria’s pathway to cheaper, cleaner energy is a desperate ploy to protect a business model that has proven to be nothing more than a ponzi Scheme.

Rewiring Australia says new modelling commissioned by the Australian Gas Infrastructure Group exposes their business model as being entirely reliant on adding new customers and the significant costs those stuck on the network face once new rules come into effect.

While there is an inevitable cost to winding down the network, it is still necessary to push ahead with the Victorian government’s changes to protect further blowouts to those stuck on the network - a view shared by the Essential Services Commission.

“The business model of gas is entirely reliant on adding new customers. They are happy to keep peddling lies about the economics of this even when impartial government advice has shown it’s inappropriate for existing customers to continue funding new connections when future demand is so uncertain,” Rewiring Australia CEO Francis Vierboom said.

“Yes, there is a real cost to eventually shutting down the gas network, but that cost gets higher every day more people connect. This is a stranded asset that has to be paid for and the shareholders in the gas companies should be wearing this. But they’ve made clear in their modelling they think they’re entitled to slug Victorian homes and businesses instead.“

Gas networks already have astronomically high fixed costs and as more and more people choose to electrify their homes and leave the network, remaining customers are left to cover costs across fewer bills. Renters, low-income households and people unable to electrify and who are stuck on gas are the ones left to deal with it.

“This same cartel was successful in delaying similar rules in South Australia recently which we know will add up to $155 million to the collective bills of gas users, and a 60 per cent increase in their bills over the next decade as the customer base continues to evaporate.

“Electric technologies are scientifically proven to be cheaper and more efficient. A heat pump water heater or reverse cycle A/C uses around a quarter of the energy to heat the same water or air. Gas goons will never tell you this and say it’s about consumer choice. It’s imperative that nobody is fooled by their lies.”

MEDIA: Eliot Barham 0423 921 200