Energy Networks Australia (ENA) is concerned the preferred option of the Victorian Government’s Building Electrification Regulatory Impact Statement could fail to deliver on emissions and affordability.

ENA’s Acting CEO and General Manager Corporate Affairs, Emma Shanks said:

“We support the Government’s commitment to reducing the state’s emissions and helping consumers get the affordable and sustainable energy system they deserve, but believe this proposed policy does not achieve this.

“To ensure customer confidence in the energy transition, it is critical the electricity system is ready to cope with any additional electrification.

“Forcing Victorians to replace end of life gas heating and hot water appliances with electric ones is likely to lead to adverse effects on the state’s broader energy system and increase total energy costs for all Victorians.

“By transitioning more customers to electricity before the system is ready to cope with it, we would be putting greater strain on the grid, increasing costs for taxpayers and households and will need to support the grid with more gas-fired peaking generators. All of this would be for a relatively small impact to emissions, and a significant cost to Victorian homes and businesses.”

ENA is modelling the outcomes that can be expected from these proposed policies and will release a full report in January 2025. This modelling will consider impacts on the whole of the energy system.

“We welcome the Government’s commitment to extensive consultation on this proposal where we will share the findings of our modelling and the expertise of our electricity and gas network members,” Ms Shanks said.

ENDS