Canberrans could save almost $1900 on power bills by switching off gas

Only residents in Hobart stand to save more from ditching gas-powered stoves, hot water systems and heaters, the Climate Council's analysis shows.

The Climate Council is using the findings to urge all state and territories to follow the ACT lead and offer low or zero-interest loans on appliances to help households make the switch.

It also wants governments to mandate the replacement of gas appliances with electric alternatives in households from 2025, and offer free upgrades in public housing.

The new report, to be published on Thursday, casts "escalating" gas bills as a major cause of the cost-of-living squeeze gripping the country.

Wholesale gas prices surged in the past 12 months amid local and global disruptions, including Russia's invasion of Ukraine, with the shock flowing through to household bills.

The head of Alinta Energy this week warned retail prices could rise more than 35 per cent next year, while Treasurer Jim Chalmers has conceded inflation is set to remain higher for longer because of the surging energy prices.

Analysis in the new Climate Council report found that households in all capital cities would save upwards of $500 per year on their power bills if they went fully electric.

Households in Hobart ($1899) and Canberra ($1876) had the potential for the biggest savings because of the amount of energy needed to heat them during their city's bitterly cold winters.

The high price of gas in Brisbane would mean households in the Queensland capital could save more than $1424.

The savings figure was calculated by combining the heating, cooking and hot water bills from a household using gas, then comparing it with bills for a household with electric appliances being used the same amount.

The gas supply fees were also removed.

The research assumed the annual gas bill for a Canberra household was $2957.

That is roughly the same amount that a large and old five-person home in suburban Canberra would be expected to pay this financial year, according to ACT government estimates.

READ MORE:

"In the middle of a national cost-of-living crisis, getting gas out of homes is a smart and simple way for Australians to save hundreds, if not thousands of dollars a year, while also reaping health benefits and reducing greenhouse gas emissions," the report's lead author, Climate Council senior researcher Carl Tideman, said.

The report acknowledges the upfront cost of buying electric appliances can be barrier which "traps" households into sticking with gas.

It recommends states and territories replicate something akin to the ACT government's sustainable household scheme, which offers no-interest loans of up to $15,000 for electrical appliances, batteries, solar panels and electric vehicles.

The scheme is part of the government's plan to phase out natural gas in the ACT by 2045.

Paul Nagle and Jodie Pipkorn didn't have the option of connecting their home to gas after moving from the inner-north to the newly established, all-electric suburb of Ginninderry.

But they would have ditched gas regardless for financial and health reasons.

The pair chose to build a super energy efficient home after moving to Canberra's outer west, which is now opened up to the public on weekends to demonstrate the potential of gas-free living.

"It was a no brainer for us to build this new home without gas," the pair said.

We've made it a whole lot easier for you to have your say. Our new comment platform requires only one log-in to access articles and to join the discussion on The Canberra Times website. Find out how to register so you can enjoy civil, friendly and engaging discussions. See our moderation policy here.