Australian Capital Territory Advances Plan to Retire Gas Network by 2045
2026-06-11 14:18
Favorite

en.Wedoany.com Reported - The Australian Capital Territory (ACT) government and local gas network operator Evoenergy have confirmed that the retirement of the gas network will proceed through street-by-street, zone-by-zone, or area-by-area batch closures, rather than allowing individual households to disconnect independently. The policy has banned new gas connections since December 2023 and set a target of achieving a gas-free status by 2045.

A model developed by Energeia for the ACT government identifies the "customer churn spiral" as a core risk during the transition. As more households voluntarily electrify, the network maintenance costs for remaining users will continue to rise, thereby increasing their gas bills and prompting further exits. Zoning maps and specific retirement timelines have not yet been released, but the structured, planned retirement approach and the economic forces accelerating this process are already clear.

Regarding gas bills, Evoenergy submitted a revised five-year gas plan to the Australian Energy Regulator (AER) in January 2026. The plan proposes an average annual increase of AUD 22 in the network component of gas bills during the regulatory period from July 1, 2026, to 2031. This increase is not driven by wholesale price fluctuations but reflects the structural cost rise resulting from fewer users while infrastructure remains unchanged.

The ACT government has focused on equity issues during the transition. The Energeia model explicitly identifies retirees, tenants, and low-income households as core equity concerns, recommending targeted incentives as a key component of the transition plan. The ACT government has committed to ensuring that no household loses heating when the main gas pipelines are retired, though specific funding or loan mechanisms are still being developed.

For homeowners still using gas, the ACT's gas transition is a confirmed infrastructure plan. The following points are noteworthy: owner-occupiers should treat the next equipment replacement (e.g., hot water systems) as an electrification decision rather than a like-for-like replacement; homeowners undergoing renovations should electrify heating, cooking, and hot water systems during construction for cost-effectiveness; homebuyers should inquire about the age and condition of gas appliances in the property and factor future full electrification costs into their valuation; sellers should be aware that fully electrified homes, having eliminated this future cost for buyers, hold a market advantage.

This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com