_GOVERNMENT ANNOUNCEMENT IS NOT ALL HOT AIR

Late last week, the Victorian Ministers for Energy and Planning announced that gas connections to new homes would be banned from January 2024 in an effort to reduce emissions and work towards meeting a net zero goal by 2045.  The ban on gas would relate to all future planning permit applications for subdivision and development, including the retrofitting of existing buildings if a planning permit is required for development.

Considering Victoria is the largest consumer of gas in Australia, it was not surprising that the announcement has been met with both a staunch backlash from those who fear consumer choice is being stripped away and backing from those in support of more sustainable policies. 

You may recall however, that following the Australian Energy Market Operator intervention into the sale and supply of gas in July last year, the Victorian Minister for Planning also exercised powers of intervention in approving planning scheme amendment VC221.  This amendment removed the requirement for all development and subdivisions to be provided with a connection to reticulated gas.  VC221 did not ban the provision of reticulated gas to new developments but rather left it at the discretion of the developer. 

Following from VC221, the announcement last week does not come as a huge surprise and seems to be the logical next step in supporting the Victorian move away from gas.  This move is already being reflected in decisions by developers to exclude gas reticulation from new masterplanned communities.