Getting off gas for good is set to become far cheaper in NSW, while households sticking with it will be worse off as they absorb the disconnection costs.
The Australian Energy Regulator has released its decision on the Jemena Gas Network's 2025-2030 access arrangements, including the cost of permanent disconnections.
Under the agreement, the cost of permanent disconnection will go from over $1,100 to just $250. Jemena will still receive a disconnection fee of over $1,200, but the remaining costs will be spread out among the remaining gas network users.
"There are plenty of reasons to get off gas, and this latest decision by the AER to make it cheaper to disconnect, and more expensive to stick with it just adds to the growing list of incentives to go electric," Rewiring Australia CEO Francis Vierboom said.
The new pricing, which takes effect from 1 July 2026, is aimed at making it safer and more affordable for households to exit the gas system entirely. It also addresses safety concerns about the risks of leaving unused gas connections in place.
The AER has also warned investment in gas was risky, with demand in long-term decline and a shift in energy policy shifting the energy landscape.
"It's clear savings will continue to grow for households that go electric. Our research shows the average Australian family could save thousands of dollars a year by making the switch. Now we should go faster and fairer, so we need more support for low income homes and renters to upgrade to cheaper, cleaner all-electric homes," Francis Vierboom said.
