Gas Bill Shock After Home Electrification Explained

A household that fully electrified their home had a nasty shock after subsequently receiving a huge gas bill. Here’s what happened.

Why The Big Gas Bill After Electrification?

According to James William, founder of Australian Energy Assessments, the customer had installed a heat pump hot water system, induction cooker and reverse cycle air-conditioner and then called his firm after receiving the big gas bill.

“The culprit? Gas meters aren’t smart meters, they’re read manually. If the meter reader doesn’t come after you electrify, your supplier will often apply assumed usage based on your old gas habit,” he says. “That gets corrected later once an actual read is taken… but the ‘assumed’ bill can look scary in the meantime. So if you’ve made big changes at home, let your gas retailer know and request a meter read before paying anything. Saves a whole lot of confusion.”

But depending on the situation, which isn’t entirely clear, the customer in this example may still keep getting bills after the real read is taken (just not so big).

Ceasing Gas Use Vs. Disconnection Vs. Abolishment

Getting off gas is a great move financially and environmentally speaking; and for the sake of your family’s health.

But simply ceasing gas use won’t stop the bills from rolling in. As with electricity, gas customers are subject to a fixed daily or service charge for maintaining the gas connection. You pay this charge even if you don’t use any gas.

Ranging from 19c to $1.24 per day, these charges can add up to hundreds of dollars a year. To avoid such charges and never see another gas bill again, you’ll need to choose between disconnecting and abolishing your connection.

• Disconnection involves plugging/sealing the gas pipe on a property just before it enters the gas meter, which may also be removed.
• Abolishment often involves pulling out the gas pipe (and meter) from a property out to the street mains and capping it at that point.

The process for disconnecting gas may only take a few days and is usually quite cheap, whereas abolishment can take months and can cost anywhere from a couple of hundred dollars to more than $1,500, depending on the state you’re in and your energy retailer.

You can learn more about gas disconnection vs. abolishment here.

How Much Can Be Saved By Getting Off Gas?

While replacing gas appliances with electric can involve a significant investment, for most households this will pay for itself within an acceptable period of time; particularly if they have installed solar panels. And as with solar and batteries, there are rebates and subsidies to support the shift.

As for what the simple payback period is, that will vary according to circumstances. But earlier this year, SolarQuotes’ resident fact-checker Ronald Brakels crunched some numbers to produce estimated savings for solar and non-solar households; his conclusion being:

“There are currently over 5 million Australian homes with gas connections. The number that would be financially better off if they stopped using gas is, by my calculations, over 5 million.”

Home Electrification Picking Up Pace In Australia

A survey report from Energy Consumers Australia early this year indicated 35% of homeowner households using mains gas are considering cancelling their supply within the next 10 years; and close to 1 in 10 say they will probably cancel in the next two years.

Some states/territories are pushing the home electrification shift along. For example, From January 1, 2027 in Victoria, *all* new homes will need be built all- electric. New homes and apartment buildings in the state needing a planning permit have been required to be all-electric since the beginning of 2024. Another example is the ACT, where the Territory’s government is aiming to transition away from fossil fuel gas and phase out its use entirely by 2045.