Change needed for smarter energy spending

Millions of dollars could be saved by redirecting money away from maintenance of ageing gas pipes towards supporting homes to electrify, new Brotherhood of St. Laurence research shows.

A rare “win-win” in the energy transition could be reached, but collaboration on a rule change is needed to make it happen, the Brotherhood of St. Laurence’s (BSL) Balancing Act research project shows.

A cost-benefit analysis of a neighbourhood of about 800 people found electrifying homes would save society $3.3 million compared to business-as-usual gas maintenance, while social research showed support among lower income households for targeted ‘gas pruning’ when financially supported.

BSL Climate Researcher David Bryant said current rules only allowed for gas pipes to be replaced with gas pipes. “This is the case even when lower cost, more environmentally friendly alternatives are available,” Mr Bryant said.

“Our research shows that if legislation allowed for ageing gas infrastructure to transition to electricity, millions of dollars could be saved. We need to change the rules so lower-income households aren’t stuck on gas and bearing the cost of the network in the future.”

The studied approach is called ‘gas pruning’: the phased disconnection of areas from the gas network and switching them to electric-only, with full support provided to households. It focuses on areas where gas network operators propose spending on upgrades, such as replacing old pipes. Enabling pruning would require collaboration between regulators, governments, and gas businesses.

“Diverting money from these soon-to-be-redundant gas upgrades towards assisting households to electrify could be a win-win for households and governments as we build the infrastructure we need to power our future and take the action needed to limit dangerous climate change.”

Mr Bryant said households should be given plenty of notice and fully funded: “By switching to all-electric, families would have lower bills, more efficient, future-proof homes, and healthier and safer living environments. We know gas will be around for a while yet. But we need to prepare and make sure lower income families are not left behind as people who can afford to do so transition away from gas.”

BSL's research was funded by Energy Consumers Australia, whose recent report Power Move calls on governments to work together on an orderly and fair transition off the gas network. 

“I think the government should help because it has an effect. If those people can save money, they're going to put money back into the community," Female, 50-59 years.

"I would rather it be moved to something that's more ecologically conscious and better for the long-term future than upgrading something that is probably going to ideally be gone in the near future anyway,” Male, 30-39 years.

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