Nationals Member for Gippsland East, Tim Bull, has blasted Premier Jacinta Allan’s “tone-deaf” response to Lakes Entrance and Orbost residents facing major costs to transition from the compressed natural gas (CNG) network.
Households and businesses in 10 regional centres, including Lakes Entrance and Orbost, face significant out-of-pocket expenses to switch from CNG to electricity.
Those opting for LPG are receiving far greater support, while those choosing electricity are being offered only minimal assistance.
“This situation has arisen because the State Government allowed Solstice Energy (formerly Tas Gas) to exit a 20-year agreement halfway through its term. In approving this, the Government should have ensured no household or business faced transition costs – regardless of whether they chose LPG or electricity.”
In Parliament, Mr Bull urged the Premier to reconsider but said government MPs initially denied any State responsibility.
However, Solstice confirmed in writing that “the early exit of the agreement and decommissioning of the gas networks has been agreed with the Victorian Government.”
“It beggars belief the Government would agree to this knowing it would financially hurt households and businesses,” Mr Bull said.
“Solstice has openly stated their payment won’t cover the cost of replacing gas
appliances with electric ones. Why sign off on such a deal?”
Melissa Stevens, who runs Indoor N Out Cleaning Services and Laundromat in Orbost, said the unexpected transition has left local businesses anxious about unfair costs.
“For my business, I need Solstice Energy to commit to maintaining my supply at no transition cost as I had every reason to believe my gas supply would be ongoing. We should not be left out of pocket for what has been forced upon us,” Ms Stevens said.
Mr Bull also questioned why the Government supported a stronger transition package for LPG than electricity, despite Energy
Minister Lily D’Ambrosio in 2023 urging Victorians to move away from gas to efficient electric appliances.
“Two years ago she stated: ‘We’re ensuring Victorians aren’t locked into expensive fossil gas prices and sky high energy bills – helping them switch to efficient electric appliances’ adding ‘it’s time to put gas on the back-burner’.
“Now they’re backing a deal to push LPG over electricity – it’s running with the foxes and hunting with the hounds,” Mr Bull said.
“In 2015, then Premier Daniel Andrews promised to deliver the Energy for the
Regions program.
“In Parliament, Premier Allan dodged my question on whether the State will assist those out of pocket, preferring to talk about history rather than the real issue.
“Her arrogance was at its peak.”
