Warrnambool developers slam decision to ban gas in Victorian homes

The announcement on July 28 was welcomed by medical and environmental groups, as well as the national Property Council and Master Builders Victoria, but local developers were sceptical.

Veteran Warrnambool developer Graeme Rodger said there was "no rhyme or reason" to the decision.

"It's the craziest thing I've ever heard," Mr Rodger said.

"It just shows how inconsiderate our government is."

From the start of next year all planning permits for new homes or residential subdivisions will have to rely solely on the electricity network for their energy needs.

In making the announcement Energy Minister Lily D'Ambrosio said the move would save new home owners up to $1000 a year off their energy bills, or up to $2200 for households that also had solar panels installed.

"We know that with every bill that arrives, gas is only going to get more expensive. That's why we're stepping in to help even more Victorians get the best deal on their energy bills," Ms D'Ambrosio said.

"Reducing our reliance on gas is critical to meeting our ambitious emission reduction target of net zero by 2045 and getting more Victorians on more efficient electric appliances which will save them money on their bills."

Mr Rodger said he didn't understand how the savings claims stacked up considering the rising cost of electricity.

"In my experience gas is the cheapest thing you can have, from both an installation and usage perspective," he said.

"You can really control how you use it. I don't know how a lot of people could exist without gas."

Mr Rodger said the government had offered generous rebates to developers in the past for hooking into the electricity grid but those days were long gone.

"We used to get electricity put on for almost nothing. It's doubled since 10 years ago," he said.

The government has introduced a $10 million Residential Electrification Grants program to help home builders and developers get rebates for installing solar panels, solar hot water and heat pump systems, easing the transition.

Warrnambool property developer and former mayor Tony Herbert said he was enthusiastic about the transition away from fossil fuels but worried about a hasty transition causing added pain for already struggling consumers.

"I think that the ultimate ban is a very good idea but it's a matter of time frames," Mr Herbert said.

"We're seeing an exponential increase in the cost of power and this will only add to that."

Mr Herbert said he didn't think renewable technology had advanced enough to replace the demand gas filled for many south-west residents.

"It's a really hard call because the situation with climate changing is emerging quickly and we're grappling to get the wind and solar and renewables up and going, but I don't think it's there yet," he said.

"All well and good to say gas shouldn't be extracted, but to all of a sudden say it's time to change, is there a real alternative?"

Property Council national policy director Frankie Muskovic was more upbeat, saying the change gave the industry clear guidance for the renewable transition.

"Electrification is the fastest, cheapest way to decarbonise the way we heat our buildings, and the ban on new gas connections provides industry with the certainty it needs to deliver zero-carbon-ready buildings," he said

Royal Australian College of GPs co-chair Aadhil Aziz said the change was also a health matter with a growing body of evidence showing clear respiratory side-effects from domestic gas use.

"Gas stoves expose people to respiratory irritants...Phasing out gas in our homes is the right choice for our health and the climate," he said.

Western Victoria Greens MP Sarah Mansfield said the decision was "testament to the tireless advocacy of the Greens and environmental advocates over many years".

"Victoria uses more gas in their homes than any other state. It's a huge driver of our emissions and can lead to terrible health consequences, including asthma in kids," Dr Mansfield said.

"Moving towards all-electric homes is a great step and will help us get off gas more quickly."

South West Coast MP Roma Britnell said she thought the announcement was an attempt by the government to distract from a fortnight where it had been forced to ditch the Commonwealth Games and faced troubling findings from corruption watchdog IBAC.

"This announcement comes at a time when the government are trying to do urgent reputation management," Ms Britnell said.

"We all know renewables are the way of the future, so a gas ban sounds good, but they haven't spoken to industry about this."

Ms Britnell said the biggest hole in the announcement was a plan to bring power prices down.

"They have no plan to reduce the cost of power. It's all so rushed, and meanwhile families are struggling," she said.

"Lily D'Ambrosio says it will bring prices down, but she can't say how and honestly it can't be trusted."

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