Gas stoves are increasingly under the spotlight with experts raising concerns about Indoor Air Quality, the climate impact of gas and the rising cost of this price volatile resource.
As gas bills are set to rise yet again, the Climate Council has renewed calls for state governments to quickly deliver measures that help all Australians kick gas out of their homes for good.
The council’s senior researcher, Dr Carl Tidemann, said Australia’s cost of living crisis continues to bite with energy companies passing on gas price hikes to consumers even as they rake in massive profits.
“Ending our dependence on expensive, price-volatile gas should be a top priority for our leaders,” he said.
“Households can save hundreds, if not thousands of dollars a year by running electric heating, hot water, and cooking systems instead of gas ones, but the up-front cost of replacing appliances is a major barrier for many families to access these savings.
“Gas is a fossil fuel that drives dangerous climate change, a health hazard, and a growing financial burden on Australian families. Getting gas out of our homes is good for our health, our economy, and our climate. “
The Climate Council’s Switch and Save report shows Australian households could save between $500 and $1,900 a year by replacing gas, with payback periods as short as six years.
“Victoria and the ACT are leading the nation on policies that support gas-free homes,” Tidemann said.
“Victoria is ending forced gas connections in new homes, while ACT residents can access zero interest loans and grants to electrify their homes. Other states should follow suit.”
Industry groups are also struggling with the price volatility of the gas market with manufacturers passing on costs to customers.
Industry groups claim the pricing problem is due to a supply squeeze impacting commercial and industrial customers.
Gas is a key input for many businesses with AiGroup CEO, Innes Willox, claiming his members are grappling with unfair gas prices.
The AiGroup has made a submission to the federal government seeking the implementation of a Code of Conduct for the gas industry.
With industry moving to net zero, Willox said gas will be replaced by electrification, biogas and hydrogen.
“The availability and affordability of natural gas will be important to their viability for many years to come,” he said.
“All businesses are impacted by gas costs as gas powered generation plays an important role in reliability and price-setting in the electricity market.”
The proposed mandatory Code of Conduct, which will likely come into effect this year, will contain a reasonable pricing provision requiring producers to supply gas at prices which reflect the cost of domestic gas production while still allowing for a reasonable return on capital.
Meanwhile the federal government has introduced its Safeguard Mechanism Bill to parliament which will force the nation's top polluting companies to reduce their emissions by 4.9 per cent each year to 2030, or face penalties.
The mechanism is the core of the government's plan to reduce emissions by 43 per cent by the decade's end.
The Greens will support the government’s signature climate change legislation, if new coal and gas projects are blocked from development.