Australian Households Ditch Gas: Save $4,100 Annually

A major shift is quietly underway across Australian households, with fresh data showing homeowners are ditching their gas connections in droves. While in many areas, new connections are banned, the research shows that cheap exit fees are also boosting the move toward all-electric homes. According to new Australian Energy Regulator (AER) data, gas customers are disconnecting in "growing numbers". It said that "skyrocketing" connection costs coupled with cheap exit fees are behind the drive, as the country moves closer to an electrified future. In Victoria, new gas connections have been banned since 2024, and in parts of Sydney, local governments have been increasingly eyeing similar moves. In the City of Sydney, for example, gas connections have been banned in new builds from January 1 this year. From the same time in 2027, the rule will also be applied to commercial properties as well. In the ACT, the government moved to end new gas network connections from December 2023, introducing regulations that prevent most new residential, commercial, and community buildings from connecting to the gas network. The change forms part of the territory’s broader goal to phase out gas entirely by 2045. Nationally, residential gas connections across all of Australia declined for a second straight quarter in the three months to September 2025, according to the figures. It's the first time household gas use has entered a sustained downturn outside brief or unusual disruptions. Thousands of gas connections removed Rewiring Australia chief executive Francis Vierboom said the latest data revealed more than 11,000 homes disconnected from gas over the past two quarters, while electricity connections increased by 62,000. He said that every state and territory included in the AER’s data recorded a net fall in household gas connections over the six-month period. "What this data shows is that there is no longer a debate about future technology and households have already made the decision to push ahead with cheaper and more efficient energy sources in their homes," Vierboom said. "While new gas connections are banned in Victoria, it still holds almost half of Australia’s gas connections, and seeing its first-ever net quarterly decline, nearly 2,000 connections in a single quarter, is a major turning point. "From October, new gas connections will cost around $3,000 per home while the cost of leaving gas in NSW is set to fall to just $250 from mid-year." Some households have been reluctant to give up gas, citing the upfront cost of replacing appliances, concerns about reliability during power outages, and a preference for gas cooking. Others argue that gas networks still have a role to play during the energy transition, particularly in colder regions or older homes where electrification upgrades can be complex or costly. Aussies ditching gas saving thousands: research But Vierboom said that largely, it's "become a no-brainer for consumers" to make the switch. Rewiring Australia's research found the average Australian home saves $4,100 per year by opting for electric appliances and cars. Vierboom said the shift into a sustained decline in gas connections presented governments with a chance to reduce household energy costs while accelerating progress toward emissions targets. "A government-backed HECS-style loan proposal like Rewiring Australia’s Electrify Everything Loans Scheme (EELS) removes the upfront cost barrier that stops many households from switching to electric," he said. "This loan, which only needs to be repaid when the upgraded house is sold, would allow low-income homes to install solar, batteries and electric appliances without worrying about the up-front cost, delivering permanent bill savings and healthier, comfier homes." Vierboom said expanding the Small-scale Renewable Energy Scheme to cover more electrification upgrades, such as electric cooktops and EV chargers, could deliver quick, practical cost savings for households. He added that straightforward measures, including requiring landlords to replace faulty gas appliances with electric alternatives, as flagged in Victoria, would help ensure renters also benefit from electrification. With household gas use now declining more rapidly, Vierboom said the focus should shift to how quickly governments can support the transition to cheaper, cleaner and more efficient all-electric homes. Do you have a story tip? Email: newsroomau@yahoonews.com.