Historic shift away from household gas underway as costs rise and connections fall

New data shows gas customers across Australia are disconnecting in growing numbers, with skyrocketing connection costs and cheap exit fees accelerating the shift toward all-electric homes.

Total residential gas connections fell nationally for a second consecutive quarter in the three months to September 2025 according to new Australian Energy Regulator (AER) data, marking the first sustained downturn in household gas use outside of short-term anomalies.

Rewiring Australia CEO Francis Vierboom said that in the most recent two quarters, the total count of homes connected to gas fell by more than 11,000 while electricity connections grew by 62,000, with every state and territory covered in the AER’s reporting recording a net reduction in gas connections over the most recent 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,” Mr 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.

“It’s become a no-brainer for consumers and we’re seeing households respond accordingly, backed up by Rewiring Australia’s own research which found the average Australian home saves $4,100 per year by opting for electric appliances and cars.”

Mr Vierboom said with gas connections entering long-term decline, governments should seize on the opportunity to lock in cheaper bills for residents and meet emission targets faster.

“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,” Mr Vierboom 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.

“Extending the Small-scale Renewable Energy Scheme to more electrification upgrades like cooktops and EV chargers would also deliver fast, practical savings for households, while other common-sense changes such as mandating landlords replace broken gas appliances with electric ones, as they have announced in Victoria, would ensure renters also get to share in the savings of electrification.

“With gas use in an accelerating decline, the question is now how quickly governments can help households switch to cheaper, cleaner and more efficient all-electric homes.”

EDITOR’S NOTE: Figures are based on Rewiring Australia analysis of the AER's regular reporting for NSW, QLD, ACT, SA and TAS combined with similar data from Victoria's Essential Services Commission (ESC). TAS gas connection data is not reported by the AER because of small volumes. The figures do not include WA and NT, which don't publish comparable quarterly reporting.

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