From next Friday, 8 December, new gas network connections will be prohibited in ACT residential, commercial, and community facility zones, to meet ACT Government’s target of ceasing all fossil fuel gas connections by 2045.

Gas connections will not be prohibited in industrial zones, at this stage, and existing gas connections in homes and businesses will not be affected.

Shane Rattenbury, ACT Minister for Water, Energy and Emissions Reduction, said the prohibition will stop the creation of new sources of fossil fuel gas emissions, and help Canberrans to save money on energy bills and costs by transitioning to electric.

“It stops making the problem worse,” Mr Rattenbury said. “In having no connections, we’re making sure that new builds aren’t putting in gas systems that will need to be retrofitted out later at significant expense.”

Transitioning from gas to all-electric can save households $2,000 each year, Mr Rattenbury said; homeowners would not have to pay a $300-a-year gas connection fee, and efficient electric devices would further cut down electricity bills.

“We’re conscious of making sure that consumers don’t get stranded on the network with high costs,” Mr Rattenbury said. “That’s particularly a consideration for low-income households, who are potentially the slower ones to move off the gas networks. There are some very important equity considerations in that transition.”

The prohibition will also apply to renovation or construction projects where gas connections have been decommissioned.

While most Canberrans use fossil fuel gas for heating, hot water, and cooking, Mr Rattenbury says more efficient electric alternatives are available. Already, one-third of Canberra households have phased out gas, while fewer new buildings connect to the gas network.

“This is a real positive in making sure that Canberrans are getting buildings that are set for the future,” he said. “They won’t have gas connections, they’ll simply be electric and ready to go, ready for Canberra’s all-electric future.”

Mr Rattenbury said he was confident the ACT would transition off gas networks by 2045, as the two-decade timeframe proposed.

“That’s really important for the community. Now when their gas heating system breaks down, they know that this is the time to change over. We’ve sent that signal so people can get prepared in an orderly way.

“Similarly, industry have given us very clear feedback that they want to know what the plan is, and what the goal is, and what they can prepare for. Certainty is king, and that certainty is something the government has provided. We’ve been very clear about where we’re going. And that really empowers both residents and business to get organised for those days.”

Many businesses and developers have already electrified their own businesses or new builds, Mr Rattenbury noted. The prohibition “makes sure the laggards can’t just keep doing it the old way … everybody’s being held to the same standard”.

Michael Hopkins, CEO of Master Builders ACT, welcomed the certainty that the new policy provided.

“The construction industry has known for some time that we’ll be getting to a point where there’ll be no new connections,” Mr Hopkins said.

“Many developers and builders are already building new projects with no gas connection, so a lot of that transition has already occurred here in the ACT…

“We’re finding that demand from clients who want a new gas connection is declining quite rapidly. We’ve seen new suburbs already built in the ACT that have no gas connections.

“The feedback from our members is that many people have already adapted to this new environment. The new regulation today just provides clarity for everyone to make sure there are no new gas connections being built from 8^th December.”

A short transition period from 8 December to 1 March 2024 will help reduce disruption for current projects.

Restrictions on new gas network connections will not apply where connection applications were made to Evoenergy before 8 December, as long as the connection is completed within 12 months of the application; a development application is lodged or a building approval is issued by 1 March 2024 and a certificate of occupancy has not been issued; or an approval for an exemption has been issued.

“The provision deals with approvals that have already been given, or applications that are currently in the system,” Mr Hopkins said. “So if you are already designing a project or relying on a gas connection, you will be able to continue through the short transition period.

“If you want to make a decision to switch, building contracts already contain a mechanism that allows that variation to be made. We would encourage anyone to speak with their builder or speak with their tradies about making that change …”

Mr Hopkins also encouraged builders and clients to make sure they understood the cost and contract impacts.

The government can grant exemptions to hard-to-transition sectors – businesses or people seeking connections in commercial or community facility zones, where the applicant cannot operate without a gas network connection, and cannot move to a place with an existing connection or a land use zone that can obtain one.