Victoria is set to face significant energy shortages and blackouts from 2026 as new documents reveal the Allan Labor Government’s electrification of the state will fail to compensate for looming gas shortfalls.
Government briefing documents obtained by the Victorian Opposition revealed the Department of Energy, Environment and Climate Action (DEECA) said that electrification in Victoria cannot occur quickly enough to address the daily, monthly, and annual gas shortages forecast for Victoria across 2026 and 2027.
Further, the Department stated, “new gas supply will be needed to maintain reliable supply to gas consumers and to support increasing utilisation of gas power generation which will provide critical firming services as coal generation exits the National Electricity Market.”
These statements directly contradict claims made by the Minister for Energy who in March 2024 stated, “With the new winter peak for electricity we’ve already got that built and we’ve already got enough generation to meet that switchover.”
Nationals Member for Euroa Annabelle Cleeland says Labor’s gas ban will hurt regional households.
“It’s cruel that Labor’s ideological rules will hit many of our most vulnerable families when they can least afford it,” Ms Cleeland said.
“Regional Victoria is set to be disproportionately impacted by the shortsighted and city-centric transition, leading to higher energy bills and unreliable power supply.
“We know that many of our regional communities are only fitted with gas options for heating, cooking, and their water.
“Removing gas options in these houses will only put further pressure on our electricity supply that has already crumbled under the slightest bit of pressure over summer.
“I’m all for the responsible transition to renewables, but how are our already struggling communities meant to survive when there are no alternatives.”
After power outages left much of the region without electricity earlier in the year, AusNet research found that electricity only households were saddled with significantly higher costs than those who had gas connections as well.
Electricity only customers spent on average $1,100 to respond to an outage over Christmas, whereas if they had gas connections too, that amount was reduced to just $360.