Future Gas Strategy: consultation paper

1/6 Gritten St
Weston ACT 2611
02 6202 7200
actcoss@actcoss.org.au
actcoss.org.au

Future Gas Strategy Taskforce
Department of Industry, Science and Resources
GasOptions@industry.gov.au

4 December 2023

Dear Future Gas Strategy Taskforce

SUBMISSION TO THE FUTURE GAS STRATEGY

The ACT Council of Social Service (ACTCOSS) welcomes the opportunity to provide a submission to the Future
Gas Strategy (the strategy). ACTCOSS advocates for social justice in the ACT and represents not-for-profit community organisations. We seek to ensure that the energy system in the ACT and Australia is inclusive as well as sustainable and provides optimal outcomes for all people, communities, and the environment.

ACTCOSS supports the submissions provided to the strategy by the Australian Council of Social Service (ACOSS) and the Public Interest Advocacy Centre (PIAC). We consider that the strategy should focus on energy equity and a just transition away from fossil fuels to avoid catastrophic climate change.

Globally and within our own community, disadvantaged groups are more likely to be negatively affected by climate change,1 which is caused by use of fossil fuels, including gas. Incorporating equity considerations into policies to mitigate climate change is also key to achieving effective and enduring climate action. Putting equity, justice, and inclusion at the forefront of decarbonisation will facilitate change, mitigation activity and climate-resilient economic growth. The decarbonisation process will be improved by better assistance to areas and communities with the largest exposure to the effects of climate change.2 If the strategy’s key objectives are to support decarbonisation and promote energy security and affordability, then the focus should be on moving away from fossil fuels as quickly and equitably as possible.

The latest Intergovernmental Panel on Climate Change (IPCC) report is clear that reducing the use of fossil fuels, including gas, and increasing renewable electrification are critical measures that must be taken to prevent catastrophic climate change.3

Gas remains expensive for consumers because domestic prices are subject to the volatility of the international market.4 As global gas prices surge, Australian energy users are forced to compete with overseas buyers willing to

1 N Islam & J Winkel, Climate change and social inequality, DESA Working Paper No. 152, United Nations
Department of Economic and Social Affairs, 2017.
2 Intergovernmental Panel on Climate Change (IPCC), Climate Change 2023 Synthesis Report Summary for

Policymakers, IPCC, 2023, p.31.
3 IPCC, Climate Change 2023 Synthesis Report Summary for Policymakers, p.27.
4 Climate Council, Why are gas and electricity prices going up?, Climate Council website, 2022.

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pay high prices for our own gas, while gas companies make super profits. Modelling in the ACT shows that retail gas prices are expected to increase by around 19% over the next five years.5 In contrast, the same modelling shows that full electrification is not expected to have a material impact on household energy prices. If the strategy is to promote energy affordability, then the focus should be on supporting and enabling large-scale renewable and efficient electrification.

Phasing out gas will save households money on their energy bills and is healthier for people and the planet.6

While some consumers may prefer to continue using gas, there are various instances where governments have regulated people’s choices for the betterment of society, for example the regulation of asbestos and seat belts.
Additionally, many vulnerable and low-income households, as well as renters, have no choice about whether they have gas in their home.

It is in the community’s interest to no longer have gas in homes. In the absence of a coordinated strategy to achieve this, there is a risk that electrification will proceed in an uneven way, resulting in network stranded assets and increased costs for disadvantaged consumers who do not transition off gas. As the rate of electrification increases, these risks will increase, with implications for jobs, skills, and supply chains. Accordingly, ACTCOSS considers that the Government should be planning for a coordinated electrification rollout. To support this, we recommend the Future Gas Strategy Taskforce consider undertaking modelling about the costs and impacts of stranded gas assets, as well as the co-benefits of electrification.

Fossil fuel and alternate gases are not solutions at scale, but they might have an important role to play for niche applications in hard-to-electrify industries. However, electrification is the no-regrets option, and the technology and solutions needed to support decarbonisation already exist. The strategy is more likely to meet its objectives by planning for the phasing out of gas and supporting households to electrify.

Yours sincerely

ACT Council of Social Service devin.bowles@actcoss.org.au

5 ACT Government, Powering Canberra: Our Pathway To Electrification, ACT Government, 2022, p.14.
6 ACTCOSS, Supporting a fair, fast and inclusive energy transition in the ACT, ACTCOSS, 2023.

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