The Victorian Government’s latest set of policies to address the state’s high gas prices and declining supply need significant changes according to ‌Ai Group Victorian head Tim Piper.

The Victorian gas ban is in full swing but Premier Jacinta Allan recently announced that the state is fast-tracking new gas projects including extraction storage, transmission and importation to accelerate planning permits. Additionally, the State Government is considering whether to mandate that some household appliances must be replaced with electric alternatives when they reach their end of life.

“Shrinking natural gas use is inevitable. Natural gas has been getting scarcer and more expensive and the status quo is painful for gas users, and something has to change,” Tim explains.

“Electrification makes financial sense for some energy users while renewable gases are essential for others. The State runs big risks if it steps too hard on the accelerator, however.

He adds that freeing up existing natural gas supplies and bolstering them with renewable gas would be a welcome help to avoid gas shortages given the decline of the Bass Strait.

“Some industrial processes will need gas forever and policy help to make renewable gas affordable is also very positive. The State has also finally recognised it will need new fossil gas supply investment too and has been easing barriers to that supply,” he explains.

‌He concludes by saying that Ai Group believes that electrification won’t work for everyone and proposed exemptions need to be broad and clear enough so that households and businesses can still access replacement gas appliances when alternatives are not right for them.

“Gas use is going to change. But we can’t leave businesses and households behind.”