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South Australian gas customers risk being left with millions of dollars in new connection costs after the Malinauskas Government quietly delayed a national rule taking effect today that would have made new gas connections pay their own way.
South Australian gas customers risk being left with millions of dollars in new connection costs after the Malinauskas Government quietly delayed a national rule taking effect today that would have made new gas connections pay their own way.
From today, home builders applying for new gas connections in NSW, the ACT and parts of Queensland will have to pay the full cost of connecting upfront, rather than having much of that expense spread across the bills of existing gas customers over time. Victoria has already moved separately in the same direction.
South Australia was originally included in the change, but the State Government legislated to defer its application, meaning existing South Australian gas customers will continue subsidising new homes and developments to join the network.
The decision risks adding up to $155 million in new connection costs to the bills of South Australian gas consumers, according to modelling by Energy Consumers Australia. The average cost of connecting a new SA home to gas is estimated at around $4,500 before the cost of installing gas pipes and appliances inside the home.
Rewiring Australia CEO Francis Vierboom said new home buyers outside of South Australia will benefit from the change, which gives builders a solid reason to choose efficient electric appliances from the outset.
“This is great development for young families buying new homes because it gives builders a real reason to install efficient electric appliances from the start, rather than cheaper gas appliances that cost the homeowner more to run for years to come,” Mr Vierboom said.
“Once the true cost of connecting gas is on the table, we expect many more will decide an all-electric home simply makes better sense.
“It is deeply disappointing that South Australia has chosen to delay this protection, leaving young families already exposed to record-high interest rates and cost of living pressures at risk of buying homes that are more expensive for them to run.”
The national rule would still allow South Australians to choose gas but require the person making that choice to pay for the new connection rather than passing the cost onto other customers.
The change was introduced by the Australian Energy Market Commission to protect people who remain on gas as demand declines and fewer customers are left sharing network costs.
MEDIA: Eliot Barham 0423 921 200
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