Millions of Australians will be slugged thousands to connect their homes and businesses to natural gas as part of one state’s plan to halve carbon emissions.
Victoria’s Essential Services Commission has proposed new rules that will require homes to pay $2,500 and businesses $31,000 to connect to the network.
The cost of connecting homes to the gas network depends on where the property is located but the average upfront cost is between $1,778 and $2,378.
The price balloons for commercial and industrial properties with business owners to pay between $7,111 and $30,993 to connect to the network.
The rules will replace current ones that allow for network connections to be paid back over a period of time through charges on utility bills.
Millions of Australians will be forced to cough up thousands to connect their homes and businesses to natural gas (stock image)
The ESC says the plan will bring the industry into line with electricity and water connections which can cost new homeowners between $600 and $2,400.
The state’s energy regulator says this will also cap new investments into the gas network – forcing customers to pay back even more.
Victoria is on a mission to halve carbon emissions by 2030 and is limiting any further growth of the gas network to reduce the gas assets that need to be paid off.
Industry experts say people with lower incomes who can’t afford to convert to electricity will be the ones who cop the costs, with gas providers given the green light to charge an extra $333million over five years.
The transition from gas to electricity comes amid modelling