Inflated charges: push to make landlords pay gas bills

Australian renters are being forced to pay nearly $440 million annually to remain connected to gas networks, despite landlords having control over whether properties stay on the gas supply, according to a new analysis by Rewiring Australia. The non-profit group is pushing for a change that would require property owners to bear the cost of gas connection charges, a move that could incentivize landlords to transition rental properties to electric appliances.

This proposal comes after the Australian Energy Market Commission warned that some gas customers might face increased bills in the short term as providers attempt to recoup costs from a dwindling customer base. Rewiring Australia's research, based on data from Energy Consumers Australia, revealed that 49% of rental homes (1.63 million households) are connected to mains gas supply, with these families paying $440 million in fixed charges for gas connections, regardless of their usage.

The organization's chief executive, Francis Vierboom, argues that it is unfair for renters to be burdened with decisions made by landlords. He suggests that if landlords replaced gas heating, hot-water systems, and cooktops with electric alternatives, renters could save an average of $1,600 annually, or $2.6 billion nationwide. While Vierboom acknowledges that this change alone would not compel landlords to electrify their properties, it could make the switch more appealing over time.

Emily Cambourne, a Sydney teacher who rents a four-bedroom home with her family, supports the idea, stating that any encouragement for landlords to upgrade appliances would be beneficial. Australia's gas demand is projected to decline by 75% on the east coast and 55% on the west coast over the next two decades, according to a recent report from the Australian Energy Market Commission.