Energy
Gas Disconnection: The Victorian Trend Spreading North
Victoria banned gas in new homes. Now, ACT and NSW residents are voluntarily disconnecting to save on the 'Daily Supply Charge'.
The flame is going out for residential gas. Following Victoria's ban on gas connections in new homes, thousands of existing homeowners are voluntarily cutting the pipe. Why? The economics of the "Daily Supply Charge".
The $400/Year Fee for Nothing
Even if you don't use a single mega-joule of gas, you pay a supply charge of roughly 90c to $1.10 a day. That is nearly $400 a year just for the privilege of being connected. By switching your hot water to a Heat Pump and your stove to Induction, you can abolish this bill entirely.
The "Abolishment" Cost
Historically, networks charged heavily to remove the meter. In 2026, regulatory pressure has lowered these "abolishment fees", and in some cases (like Victoria), it is subsidized. Electrification is no longer just an environmental choice; with gas prices rising 15% this year, it is a financial survival strategy.
Not Every State Is Moving at the Same Pace
Victoria is the clear front-runner — it has both banned new residential gas connections and actively subsidises disconnection for existing homes, because a larger share of Victorian homes still use gas for heating and hot water than anywhere else in the country. Other states haven't introduced an outright ban, but the same underlying economics (a fixed daily supply charge you pay regardless of usage) are pushing voluntary disconnections everywhere gas prices have risen. If you're outside Victoria, check with your specific gas distributor what their current abolishment fee is — it varies significantly by state and network, and the "it's now subsidised" news mostly applies to Victorian networks so far.
What Electrification Actually Costs Upfront
Ditching gas isn't free to do — a heat pump hot water system typically costs several times more upfront than a like-for-like gas replacement, and induction cooktops cost more than gas cooktops of similar quality. The case for switching rests on the ongoing supply charge disappearing entirely (not just usage dropping), which is what makes the payback period much shorter than people expect — often inside a few years once you account for the roughly $400/year in avoided supply charges alone, before even counting usage savings. Renters should note this is a landlord decision, not a tenant one; if you're renting, raising it with your property manager as a value-adding upgrade (rather than a cost) is the more productive angle.
Checklist for Action
- Audit your current bills: Gather your last 12 months of statements for Energy.
- Compare the market: Use SaveNest's comparison tools to identify the top 3 cheapest providers in your area.
- Check for loyalty taxes: Call your current provider and ask them to match the best offer you found online.
- Verify concessions: Ensure you are receiving all state and federal rebates you are entitled to.
- Set a reminder: Mark your calendar for a 6-month review to ensures you stay on the best plan.
- Share the savings: Tell a friend or family member how much you saved to help them avoid the 'lazy tax' too.
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