Canberrans won’t be cooking with gas beyond 2045 – and that could have consequences for gas users in NSW border towns. Photo: beaer_photo.
A gas supplier has admitted there will be “implications” for its NSW customers as the ACT continues its push to phase out piped gas by 2045.
Nationals Upper House member Nichole Overall questioned NSW Energy Minister Penny Sharpe during a Legislative Council recent question time about how the government planned to ensure residents of border towns wouldn’t face higher costs or reduced reliability as a result of the ACT’s move.
“The issue … is a matter for the Australian Capital Territory,” Ms Sharpe responded.
“The issue in terms of the impact on bills and motorists, and what that means for those across the border, is something that we keep an eye on. However, we have to be honest that it is not something we have complete control over.
“Prices change over time, and it depends on what is going in and out of the system.”
Ms Sharpe took the question on notice to see exactly what the NSW Government knew about the ACT’s decision and what impact it might have on border town gas users.
Ms Overall took issue with Ms Sharpe’s characterisation that this wasn’t a cross-jurisdictional issue.
“Households, businesses and major commercial and industrial users on both sides of the border will potentially need to find new sources and other ways to deal with the situation,” she said.
“That could potentially be something as serious as relying on bottled gas, which we know has dramatic impacts and potential health consequences.
“As Canberra drives down demand, NSW customers could be left carrying the can. Queanbeyan families didn’t vote for the socialist state – or territory – of ACT Labor, so why should they have to pay the price for it?
“And it’s even more concerning when the NSW Labor Government has zero clue about the cross-border chaos this could cause.”
Nichole Overall’s expressed concern over what she sees as a lack of awareness from the NSW Government over how the ACT’s decision will impact NSW residents. Photo: Supplied.
It’s an issue that has been called out by Master Plumbers ACT (MPA ACT) for some time.
It recently called for a clearer pathway for the gas network shutdown by 2045 as soon as possible.
“Canberra’s satellite cities, suburbs, specific streets and building types (residential to commercial and single level to multi-level) deserve to know, many years ahead, when their gas supplies will be disconnected and forced electrification will occur,” its submission to the ACT 2026-27 budget read.
“Areas directly adjacent to the ACT in NSW (like Queanbeyan, Googong and Jerrabomberra) connected to the Canberra natural gas network also require transparency about how the shutdown will affect properties in those locations.”
Evoenergy provides gas distribution services across the Territory, and also to about 16,250 customers in the Queanbeyan-Palerang region.
Queanbeyan, Jerrabomberra and Googong are part of Evoenergy’s interconnected ACT and NSW gas network. Bungendore isn’t hooked up to the ACT’s network and so those residents won’t be impacted.
An Evoenergy spokesperson told Region that as gas demand and customer numbers in Canberra went down, there would be “implications” for everyone else still connected to the network.
“Evoenergy’s charges may be expected to increase over time as more customers leave the network,” they said.
“The pace of change and the regulatory response is currently unknown.”
Network charges are determined through the Australian Energy Regulator’s five-yearly regulatory planning process, which account for about 30 per cent of a household’s overall retail gas bill.
A review of the gas regulatory framework is underway by the Australian Energy Market Commission to make sure it’s fit for purpose for future drops in gas demand.
The spokesperson said Evoenergy had identified economic and technical challenges for continued gas supply to NSW customers once the ACT network was decommissioned.
“Gas supply to Queanbeyan, Jerrabomberra and Googong currently relies on infrastructure within the ACT and cross-border supply pipelines,” they said.
“Continued supply following decommissioning of relevant ACT infrastructure requires these cross-border arrangements to be addressed as part of longer term planning.
“Evoenergy is continuing to assess these matters and will work closely with governments, regulators and affected stakeholders to understand future options and implications for customers.”
A NSW Department of Climate Change, Energy, the Environment and Water spokesperson said conversations were underway with the ACT Government and other stakeholders to fully understand and manage the implications that came with the Territory’s transition away from gas.
“The NSW Government is supporting households and businesses – including residents of Googong, Queanbeyan and Jerrabomberra – through the transition with policies and programs that help manage costs, improve comfort and enable informed energy choices,” they said.
“One of these programs is the Home Energy Saver, which will provide zero-interest loans and discounts to eligible households to access energy efficient upgrades.”
The NSW Government also has the Energy Savings Scheme to lower the cost of energy in homes.
