<
https://reneweconomy.com.au/the-great-gas-disconnect-why-australia-needs-a-managed-exit-strategy-for-stranded-gas-network/>
"In regional Victoria, 10 towns are currently getting a harsh preview of
Australia’s energy future. The local gas supplier announced it will shut down
its network by the end of 2026, leaving residents scrambling to replace their
appliances.
For these households and small businesses, the transition away from gas is no
longer a distant policy debate. It is a sudden, expensive reality.
Electrification across Australia is accelerating rapidly. People are making the
switch because electric appliances are cheaper to run, more efficient, and
better for their health.
But as more households leave the gas network, a massive financial problem is
brewing underground. Gas networks rely on huge, fixed infrastructure costs.
Under the current rules, when one household disconnects, the cost of
maintaining those pipes does not disappear. It simply shifts onto the shoulders
of the neighbours who remain connected.
This creates a profound fairness problem. Households and small businesses
already provide around 90 per cent of gas distribution network revenue, even
though they account for a much smaller share of total gas use. As the customer
base shrinks, we risk trapping a residual group of consumers with an
ever-growing share of the bill.
These “captive” customers are often those least able to leave. They are renters
who have no legal right to change their appliances, apartment dwellers tied to
shared hot water systems, and low-income families who cannot afford the upfront
cost of electrification. It is neither reasonable nor fair to expect these
households to underwrite the decline of a shrinking system.
We need to stop treating the gas transition as something that’s just happening
to us and start recognising it as a problem we need to actively design for. Not
all transition costs are created equal, and we must distinguish between them to
find a fair path forward.
First, there are unavoidable costs. Gas networks still need to be kept safe and
reliable for as long as people need them, and paying for basic safety
maintenance is a necessary reality of managing the transition.
Second, there are inefficient and completely avoidable costs. Our current
regulatory system was built for perpetual expansion. It still rewards gas
companies for replacing legacy pipes. We must stop pouring consumer money into
new infrastructure that will be obsolete before it is paid off.
Third, there are the costs that come from poor planning. When a gas network
shuts down without coordinating with the local electricity grid, we risk paying
twice. Unplanned, ad hoc disconnections drive up the need for reactive,
expensive upgrades to the electricity system.
The real challenge is deciding how to share the costs of this shrinking gas
system fairly and transparently."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
