Why people are asking
Every gas connection carries a daily supply charge, paid whether you use a little gas or a lot. Once a household has replaced its gas heater, hot water and cooktop with electric appliances, often a reverse-cycle air conditioner, a heat pump hot water system and an induction cooktop, that supply charge buys nothing, and the gas bill becomes pure overhead.
Policy is moving the same way. In Victoria, new homes that need a planning permit have not been connected to gas since 1 January 2024. In the ACT, new gas network connections have been banned in residential zones since 8 December 2023, and the territory plans to phase out fossil gas by 2045. Existing connections can stay, but more households are choosing to leave.
Disconnect or abolish: not the same thing
- Disconnection
- The gas supply is turned off at the meter, but the meter and the pipe stay. It can be reconnected later. Depending on your retailer and state, a disconnected meter left in place can keep attracting charges, so ask before you assume the bills stop.
- Abolishment
- The meter is removed and the service pipe to your property is permanently cut off. It is the only way to be certain the account and its charges end, and safety regulators prefer it to unused connections left in the ground. Reconnecting later means paying for a new connection.
What it costs
In Victoria, the Australian Energy Regulator capped the upfront charge for a standard residential abolishment at $220 in its 2023–28 decisions for the gas distributors, with the remaining cost spread across all gas customers. Before that, households faced abolishment charges of around $1,000. The AER has since said NSW decisions for 2025–30 also partly socialise the cost. Other states and individual retailers differ, and the retailer may add its own fee, so ask your retailer for the full amount before you book.
Set that against what you stop paying: the daily gas supply charge, every day, for as long as you would otherwise have kept the connection. Multiply the daily supply charge on your bill by 365 to see what the connection alone costs you each year. Against that, a one-off abolishment fee usually pays for itself quickly once the gas appliances are gone.
How to decide
- List what still runs on gas: heating, hot water, cooking, a gas log fire, a pool heater. You can only drop the connection once all of them are replaced.
- Find your annual gas cost on your bills, and split it into the supply charge (the fixed part) and usage.
- Estimate the electricity the replacements will use. Heat pumps and reverse-cycle air conditioners are several times more efficient than gas, so the electricity cost is usually well below the gas cost it replaces. See gas vs electricity running costs.
- Check rebates for heat pump hot water and reverse-cycle heating in your state before you buy. See energy rebates.
- Once the last gas appliance is out, ask your retailer to arrange abolishment, and confirm in writing that the account will close and charges stop.
When it does not make sense yet
If your gas appliances are young and working, replacing them all at once is expensive. Many households electrify as each appliance reaches the end of its life, starting with whichever gives the biggest saving. Hot water is usually the first. Until the last one goes, keep the connection but make sure you are on a competitive gas plan, because the supply charge differs a lot between plans. See how to save on your gas bill.
Going all-electric also changes which electricity plan suits you: your usage rises, especially in winter, and more of it can shift to cheaper times of day. Re-check your electricity plan after the switch. See how much electricity a house uses per day.
Costing it on your bills
EnergySorted reads both your gas and electricity bills and costs every plan at your address on each, for gas in Victoria, NSW, Queensland, South Australia and the ACT. Upload both and you can see what your gas connection really costs a year, how much of it is the supply charge, and which electricity plan suits your usage before and after you electrify. Check a bill free, or read why your gas bill is so high.
Frequently asked questions
Should I disconnect my gas if I have gone all-electric?
Usually yes. Once nothing runs on gas, the daily supply charge buys you nothing. Abolishing the connection ends the account and the charges for good.
What is the difference between disconnecting and abolishing gas?
Disconnection turns the supply off but leaves the meter and pipe, and charges may continue. Abolishment removes the meter and cuts the service pipe permanently.
How much does it cost to abolish a gas connection in Victoria?
The AER capped the standard upfront residential abolishment charge at $220 for the 2023–28 period, with the rest of the cost spread across gas customers. Your retailer may add its own fee, so ask for the total first.
Do I still pay a gas supply charge if my gas is disconnected?
Possibly, while the meter stays in place. It depends on your retailer and state. Abolishment is the way to be sure the charges stop.
Can I get gas reconnected later?
After a disconnection, usually yes. After an abolishment you would need a new connection, which costs more and may not be allowed for new connections in the ACT.
Can new homes still connect to gas?
In Victoria, new homes needing a planning permit have not been connected to gas since 1 January 2024. In the ACT, new gas network connections in residential zones have been banned since 8 December 2023.
Is electric heating cheaper than gas?
Modern reverse-cycle air conditioners are usually much cheaper to run than gas heaters, because they move heat rather than make it. See gas vs electricity running costs.
What should I replace first?
Usually hot water, then heating, then cooking, often timed for when each appliance needs replacing anyway. Check state rebates first.