Member for Gippsland East, Tim Bull, has blasted Premier Jacinta Allan’s “tone-deaf” response to Lakes Entrance and Orbost residents facing major costs to transition from the compressed natural gas (CNG) network.
Households and businesses in 10 regional centres, including Lakes Entrance and Orbost, face significant out-of-pocket expenses to switch from CNG to electricity.
Those opting for LPG are receiving far greater support, while those choosing electricity are being offered only minimal assistance.
“This situation has arisen because the State Government allowed Solstice Energy (formerly Tas Gas) to exit a 20-year agreement halfway through its term. In approving this, the Government should have ensured no household or business faced transition costs – regardless of whether they chose LPG or electricity,” Mr Bull said.
In Parliament, Mr Bull urged the Premier to reconsider but said government MPs initially denied any State responsibility. However, Solstice confirmed in writing that “the early exit of the agreement and decommissioning of the gas networks has been agreed with the Victorian Government.”
“It beggars belief the government would agree to this knowing it would financially hurt households and businesses,” Mr Bull said.
“Solstice has openly stated their payment won’t cover the cost of replacing gas appliances with electric ones. Why sign off on such a deal?”
Merilyn Beechey, who installed a gas fire heater after she and her husband could no longer collect firewood themselves, says she is deeply concerned.
“This has come as a terrible shock. We converted our wood heater to a gas log fire to keep us warm over winter. This announcement has come completely out of the blue with no contact, which has been disappointing.
I just hope they stay true to covering all costs to transition to LPG as stated as we should not be punished financially,” Mrs Beechey said.
Mr Bull questioned why the government supported a stronger transition package for LPG than electricity, despite Energy Minister Lily D’Ambrosio in 2023 urging Victorians to move away from gas to efficient electric appliances.
“Two years ago she stated: ‘We’re ensuring Victorians aren’t locked into expensive fossil gas prices and sky-high energy bills – helping them switch to efficient electric appliances’, adding ‘it’s time to put gas on the back-burner’.
“Now they’re backing a deal to push LPG over electricity – it’s running with the foxes and hunting with the hounds,” Mr Bull said.
“In 2015, then Premier Daniel Andrews promised to deliver the Energy for the Regions program. In Parliament, Premier Allan dodged my question on whether the State will assist those out of pocket, preferring to talk about history rather than the real issue. Her arrogance was at its peak.”
