Switch and save: how gas is costing households

13.10.22 By and
This content is more than one year old

Gas appliances – including stovetops, heaters and hot water systems – are an outdated technology with no place in the modern home. They are more expensive to run, as well as polluting. Gas is also a fossil fuel that’s worsening climate change, with major impacts like killer heatwaves and mega fires occurring more frequently, or becoming more severe. While the costs of gas may be bad for you and me, it’s big business to certain corporations.

Australia’s gas industry has spent 2022 trying to market itself as “renewable”, lobbying governments to allow even more gas mining and scaring Australians who want to electrify their homes with absurdly inflated costs for the change. They want to keep households trapped – paying exorbitant energy bills and using fossil fuels they don’t have to.

This report presents new analysis on exactly how expensive gas appliances are to run compared to the electrical alternatives, and how much households can save over the long term from switching. Despite the cost of energy varying between cities, we find that modern electric appliances are cheaper to run than gas alternatives in all the capital cities we analysed. Government assistance with the up-front purchase costs, such as zero-interest loans, will ensure that all Australian households – and, in particular, low-income households – can start immediately enjoying the benefits of getting off gas.

Australian households are trapped by escalating gas bills, which are fuelling a cost-of-living crisis. We shouldn’t have to choose between heating or eating. Nor should we be forced to keep burning toxic gas in our homes, which carries well-established health risks to our families. Getting off gas – by switching to electric cooking, heating and hot water – will set us free from paying exorbitant gas bills, and create a safer home.

Key Findings:

1. Australian households are trapped in a vicious cycle of escalating gas bills, which are fuelling a cost-of-living crisis.

2. It would be cheaper for households in all Australian capital cities analysed to be fully electric with yearly bill savings ranging between $500 and $1,900.

3. The biggest barrier for households going fully electric is the upfront cost of replacing appliances, which governments could fix with low- or zero-interest loans.

4. Making the switch from gas to electric is a win for reducing our costs of living, as well for our health and climate, but going all electric requires coordinated government action.

Report Methodology here