While the time frame remains up in the air, the shift away from gas as a domestic energy source is inexorable. If you still have a gas appliance, sooner or later you’re going to have to make the switch to energy.
That may sound like an annoying prospect, perhaps even daunting for those who’ve found gas the best option for cooking. But there’s likely to be a silver lining to that cloud when it inevitably rolls in. Chances are the switch to gas will save you thousands of dollars.
Evidence is mounting that a transition to electric appliances will lead to significant savings on your energy bill. That’s the message coming from RenewEconomy, a green energy transition analyst.
But before you grab your toolbox and rush off to disconnect your gas heater or stove, read on. RenewEconomy is not suggesting that you’ll get an immediate financial benefit from switching to electricity. Rather, it suggests that you’ll come out ahead in the long term.
“Efficient electric appliances are cheaper than gas appliances when considering the full costs over their lifespan,” it says. The claim is backed up with data from the Institute for Energy Economics and Financial Analysis (IEEFA). That data indicates an average household would save about $1200 each year if it replaced its gas appliances with efficient electric alternatives at the end of their life.
If gas is on the way out, why are new gas appliances still being sold?
This is a very good question, and RenewEconomy believes that they should not be. It says “new gas appliances lock in an unnecessary $1.2 billion in lifetime energy costs for households across the country”.
Oddly, Victoria is the state that accounts by far for the most of this cost – $900 million. Odd because RenewEconomy is the state most likely to face gas shortages first in Australia. It says the Australian Energy Market Operator (AEMO) expects gas supply to reduce faster than gas demand in southern states. This would create a supply gap from 2027. That’s only three years away.
Gas infrastructure supplier Australian Gas Networks (AGN) has a different view on pricing comparisons. It says there is “no simple answer” to the gas versus electricity debate.
“The cheapest upfront appliances are usually basic electric ones, but their higher running costs mean they could cost you a lot more over time,” says AGN. “Natural gas appliances can have lower running costs for all but the smallest households. In most areas natural gas gets cheaper as you use more, which suits medium and larger households.”
So what’s best for your home?
Planning your switch from gas to electric
For many Victorians, at least, the decision has been taken out of their hands. As of 1 January this year, the state has banned connections to reticulated natural gas when constructing a new house or apartment development. The new law also includes a mandatory condition ensuring no gas connections can be constructed after the development is completed.
As for planning the switch away from gas, there’s no urgent action required of consumers. Even RenewEconomy suggests only replacing your gas appliance once its lifespan is up. At that point, the recommendation is to choose an electric appliance, even if gas appliances remain on the market. When you no longer have any gas appliances, remember to contact your supplier and close your account.
In the US, ‘out of gas’ is a euphemism for feeling completely exhausted. In Australia, it appears likely that will be literally out of gas before long, so plan accordingly.
Do you have gas appliances in your home? Are you ready to make the move to electric? Let us know via the comments section below.
Also read: Record low energy prices a boon for savvy customers
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