Key facts
- Leaked documents show the Australian Gas Infrastructure Group (AGIG) is lobbying the Victorian government to reverse a ban on gas in new homes.
- AGIG's lobbyist warned that household gas bills could increase by $100 annually if the ban is not overturned.
- The ban, effective January 1, prohibits new homes and commercial buildings from connecting to the gas network.
- The Victorian government anticipates the ban will save households $880 per year, or $1,820 with solar panels.
- AGIG, owned by a Hong Kong-led consortium, operates major natural gas distribution networks in Victoria.
- The lobbyist's document suggests a change would neutralize an opposition attack line and claims "voters hate the ban."
Leaked documents reveal that the Australian Gas Infrastructure Group (AGIG) has been actively lobbying the Victorian government to reverse its ban on gas connections in new homes, ahead of the state election. The lobbyist's paper, prepared for AGIG and shared with ministers, warns that household gas bills could increase by $100 annually if the ban is not overturned, a claim that critics, including the Grattan Institute, have dismissed as a "scare campaign" lacking evidence.
From January 1, Victoria will prohibit new homes and commercial buildings from connecting to the gas network, mandating electricity-based systems. The government anticipates this policy will lead to annual savings of $880 for households, rising to $1,820 when solar panels are installed. AGIG, which owns and operates significant natural gas distribution networks in Victoria, stands to be impacted by this shift.
The document, obtained by Guardian Australia and authored by AGIG lobbyist Ken McAlpine, offers detailed advice on regulatory changes, reversing the ban before the election, and managing media announcements. It also includes political advice, suggesting a reversal would neutralize a key attack line for the opposition, which has pledged to repeal the ban, and cites unnamed research claiming "voters hate the ban."
AGIG's modelling suggests the ban could lead to a 20% to 40% increase in network costs for remaining gas customers due to reduced demand. The company is reportedly discussing these potential price increases with customer representatives as part of its regulatory price reset process, though these figures have not yet been made public.
Environment Victoria's chief executive, Jonathan La Nauze, echoed the sentiment that the document indicates a "scare campaign," noting its focus on political and policy mechanisms to achieve AGIG's objectives. Victorian Minister for Energy and Resources, Jaclyn Symes, stated that the government's position remains unchanged, acknowledging that while gas is part of the energy transition, legacy supplies are dwindling and prices are rising.
Francis Vierboom, CEO of Rewiring Australia, criticized AGIG for attempting to influence government policy, urging the government to adhere to its own established policies. Victorian Greens leader Ellen Sandell characterized the lobby's actions as brazen, suggesting they had provided the government with a detailed strategy for weakening the rules.