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You might be paying hundreds a year just to stay connected to gas

by Australians for Affordable EnergyTeam18 October 2026
Headline "Paying just to stay connected to gas" over a green-tinted photo of a family cooking together in their kitchen.

Every gas bill carries a daily charge, however little gas you use. In Melbourne it adds up to $255 to $511 a year, and more in some regional areas. If you've mostly stopped using gas, you're paying it for almost nothing.

What the gas supply charge is

Look at your gas bill and find the supply charge. (Our paper on the cost of gas sets out the figures in this post.) It's a fixed amount for every day you're connected to the gas network.

In Melbourne it's typically 70 cents to $1.40 a day, and higher in some regional areas. That's $255 to $511 a year or more, before you've lit a single burner.

Why it hits hardest when you barely use gas

The supply charge is the same whether you heat a whole house with gas or just boil pasta on it.

About 98% of the gas a Victorian home uses goes on heating and hot water. So if you've already switched those to electric, your gas connection is mostly there for the cooktop. At that point, the supply charge is often bigger than the cost of the gas you actually use.

You're paying hundreds of dollars a year to keep a stove connected.

What it costs to disconnect gas in Victoria

Once nothing in your home needs gas, you can ask to have the connection removed for good. Your retailer may call this "abolishment".

The Australian Energy Regulator caps the fee at $242 including GST. The supply charge costs $255 a year or more, so removing the connection pays for itself within the first year. After that, the saving is yours every year.

If you're not ready to make it permanent, you can ask your retailer to switch your gas off for now instead. It's cheaper, from about $15 to around $160 depending on your gas network, and the gas can be turned back on later. Ask your retailer whether the daily charge stops while it's off.

If you rent, the connection belongs to the property, so talk to your landlord first.

Before you disconnect

You'll need electric heating, hot water and cooking first. If any of those still run on gas, that's where to start. Rebates can make it a lot cheaper, including up to $140 off an induction cooktop. Here's what switching each appliance is worth.

An all-electric home gets more out of the free hours

Victoria's Midday Power Saver gives you free electricity between 11am and 2pm, every day. The more of your home that runs on electricity, the more of your day those free hours can cover. Our check takes about a minute and tells you whether you can get it.

Check if you can get free electricity from 11am to 2pm →

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