Gas heater supplier Seeley warns
energy plan will hit hip pockets
Published: 15/11/2022
Victoria’s largest supplier of gas heaters has accused the Andrews government of running a “mischievous scare campaign” over the future of gas.
Seeley International Group Managing Director Jon Seeley says Labor’s plan to transition away from gas appliances is creating uncertainty for the two million Victorian households and businesses that use them.
Mr Seeley, whose company manufactures popular gas heater brand Braemar, says the move is exacerbating stress for households amid rising cost of living pressures.
“Moves to wind down gas prematurely would not only cause significant hip pocket pain for households, but put unnecessary stress on an energy grid that is already struggling,” he said.
Seeley International Group Managing Director Jon Seeley at the Lonsdale facility.
“Despite the mischievous scare campaign being run by the Andrews government, gas isn’t going anywhere, anytime soon. Households can be assured of that.”
The state government in July released its final Gas Substitution Roadmap, which aims to slash carbon emissions and reduce soaring power bills by encouraging homes to be all-electric.
Under the plan, Victorian energy upgrade incentives for gas residential appliances will end by 2024.
Instead, there will be rebates of $2600 to replace ducted gas heating and cooling with electric and $300 rebates to replace gas hot water systems with heat pump systems.
Modelling in the government report states it would cost $15,500 to switch all ¬appliances and hot water systems to electric.
Climate Council analysis estimates it would cost between $6700 and $12,900 and take nine to 13 years to recoup through bill savings.
But these figures are disputed by the gas industry, with Frontier Economics modelling commissioned by Gas Energy Australia showing it would cost between $21,555 and $41,430 per dwelling because it includes upgrading wiring, gas removal and metering upgrades.
Mr Seeley said it was “cost prohibitive” for Victorians and accused the Andrews government of spreading “misinformation” because it didn’t take into account the additional costs involved.
But Energy Lily D’Ambrosio said: “It was in the interest of fossil gas companies to exaggerate the costs of electrification and stand in the way of Victorians getting a better deal through going all electric”.
“Our nation first Gas Substitution Roadmap outlines how Victoria will use energy efficiency, electrification, hydrogen and biomethane to drive down bills and reduce emissions by 50 per cent by 2030, while ensuring we have a secure, reliable, and safe supply of energy.”
As the war in Ukraine has driven up gas prices, the government believes going electric will take the pressure off gas demand and limits consumers’ exposure to international prices.
But Mr Seeley said Victorians need to be assured that the gas heater they purchase today will have gas flowing to it for decades to come.