The ACT Government is introducing a new regulation to prevent new gas network connections in the ACT. It is part of Our Pathway to Electrification: a plan to electrify our city and achieve zero fossil fuel emissions by 2045.

The regulation to prevent new fossil fuel gas network connections is a significant change for the ACT community. The electrification of our city is a change that will happen over time, but we need to start now by preventing new sources of fossil fuel gas use. Our transition starts well in advance of 2045.

The Issues Paper proposes an initial regulation prohibiting all new fossil gas network connections in residential and commercial areas across the Territory. This approach would allow continued network connections to be made in industrial areas until a further regulation was developed.

It’s proposed that the new regulation would commence in November 2023 (or as soon as practicable after then). The ACT Government is seeking community and stakeholder feedback on the transition to a new regulation, how it is implemented and where.

Fossil fuel gas accounts for more than 20% of our emissions here in the ACT. Residential customers account for almost 50% of the annual gas demand each year in the ACT and make up about 97% of all fossil fuel gas network connections in the Territory.

To achieve the ACT’s commitment of net-zero emissions by 2045, we need to cut emissions from fossil fuel gas.

Research shows that the best long-term option for the ACT is to steadily transition from gas to efficient electric technology.

By developing a regulation now to prevent new gas network connections in the ACT we can:

• help building users save on energy costs
• avoid potential health impacts from burning gas in homes
• reduce the Territory’s greenhouse gas emissions
• help avoid new developments being locked into using gas in the future

• assist the electricity and gas network owners to plan and manage both networks in the most cost-effective way to meet the needs of Canberra
• help builders, developers, gas fitters, electricians, gas component suppliers, gas consumers and government plan for the ACT’s electrification.

Existing education, incentives and energy efficiency improvements are seeing significant reductions in the amount of fossil fuel gas used on a per connection basis: but corresponding Territory wide emissions reductions from fossil fuel gas are not being seen.

The reason for this is simple. Continued high rates of new fossil fuel gas network connection uptake is displacing the emissions savings that current customers with existing gas connections are making.

There are regulatory gaps that are leading builders and buyers to choose to make a new fossil fuel gas connection without awareness of the climate impacts on society, and the health impacts on occupants. Additionally, many current and future fossil fuel gas consumers are not aware of the longer-term savings from an all-electric build.

These issues indicate that individuals and the market are not responding to signals relating to fossil fuel gas emissions. Regulatory intervention may be required to benefit our community and help reduce the ACT’s emissions.

It is proposed that the regulation will commence by November 2023, or as practicable as possible after this date.

No. The regulation will only apply to properties where a gas network connection does not exist. This is typically new houses and buildings and would include significant renovations (where the mains gas network connection is usually temporarily abolished) and knock-down rebuilds.

No. This regulation does not affect existing connections. It will prevent people and businesses that do not already have a gas network connection from obtaining one. It is planned to apply in residential and commercial areas. However, as the ACT moves toward full electrification, the right time to move to electric is when your existing gas appliances need replacing.

Commercial businesses typically use fossil fuel gas for heating, water heating and cooking and most of these businesses will be able to use electrical appliances in the future. Fossil fuel gas is also used for many industrial processes in the manufacturing sector.

We are currently exploring what types of industries, businesses or categories of buildings do not have viable all-electric infrastructure and appliances available at this time. This will help us consider whether these should be exempt from regulation and to develop safe, sustainable, and economically viable solutions.

All-electric options are proven and available for the primary uses of fossil fuel gas in the ACT (space heating, hot water and cooking), and many new buildings are already being designed as all-electric in the Territory. It is expected that, at the design stage, it will be reasonable for most new developments and buildings to be designed to be all electric.

However, there may be circumstances where there needs to be an exemption from the regulation. This could apply, for example, where the regulation prevents new fossil fuel gas network connections in an area, but electric alternatives are not feasible.

We are committed to making the exemption process transparent to ensure it is fair. A test may be created by the regulation about what factors should be considered when granting an exemption.

It is proposed that the regulation will only apply to new buildings or developments that do not yet have a Building or Development Approval.

However, it is important for us to understand the implications for buildings currently under construction, or where construction has not yet commenced, of continued access to a gas network connection for developers and future users of these developments.

There could be the option for multi-unit developments that have already received a DA or BA to have the chance to change their plans to provide for an all-electric build, instead of proceeding with an approved – but not yet commenced or complete – development with new fossil fuel gas network connections and gas appliances.

We started consultation in late 2022 with stakeholders and some community members through a series of facilitated workshops. We have developed an Issues Paper which has been informed by this consultation, previous research and economic modelling.

Public consultation opened in March 2023 and is open until 20 April 2023.

Whilst the focus of this consultation is to seek community feedback that will help shape a future regulation to prevent new fossil fuel gas network connections, we understand that the community is deeply interested in the broader energy transition, and the development of our ‘Integrated Energy Plan’.

The Government will release a draft integrated energy plan later in 2023, that will outline the Government’s proposed pathway to electrification. Community feedback will be sought on the draft plan.

The plan will have a focus on the following themes:

• suppoting households with lower incomes and renters
• transitioning complex buildings
• finding alternatives for specific gas requirements
• opportunities for the workforce and economy
• the future of the gas network
• role of batteries and electric vehicles.

Community consultation is anticipated to commence in the second half of 2023.

From 3 March – 20 April 2023, we are encouraging all members of the community to contribute feedback and views as we develop the new regulation. You can do this by making a written submission, completing an online survey, or providing feedback at one of our in person or online engagement activities [links when live].

To have your say or find out more:

• visit yoursayconversations.act.gov.au/pathway-to-electrification
• Email us at gastransition@act.gov.au