The fewer people on gas, the more each of them pays

More households are getting off gas. Some swap their gas hot water, heating and cooktop for electric ones, then have the gas connection taken out. Others move into new homes that were never connected.

For them, it usually means lower bills. But as the Sydney Morning Herald has reported, it leaves a question for everyone who stays on gas: who pays for the pipes?

Why do gas bills go up when people leave gas?

Part of every gas bill pays for the pipes that bring gas to your street: building them, looking after them and paying back the companies that own them. That cost doesn’t really go down when a household leaves. The cost is just shared between fewer homes — so each household pays more.

In Victoria, it's already happening. Figures released in October 2026 by the companies that run Victoria's gas pipes show homes used about 26% less gas in 2025 than in 2020, or about 22% less once you adjust for the weather. But the number of homes connected didn't fall. It actually rose by about 4% between January 2023 and June 2026. The pipes cost about the same to run, and they're carrying a quarter less gas.

You can already see it on your bill. In Melbourne, the daily gas supply charge is usually $255 to $511 a year, however little gas you use.

How many households are leaving gas?

Across the east coast, the body that runs the energy market expects household and small business gas use to fall by about 79% over the next 20 years.

Most people are leaving because of the bills. Gas has roughly tripled in price since export terminals opened in Queensland, and a Victorian home that runs on electricity instead of gas saves $990 to $2,230 a year.

In Victoria:

• about 11,000 homes a year now have their gas connection removed for good, up from about 7,400 in 2023
• about 24,000 homes a year have their gas meter locked or taken out, up from 17,200
• new gas connections fell from 47,400 in 2023 to 38,500 in 2025
• 66,700 homes that are still connected hadn't used any gas for a year by June 2026. Some of these are empty homes, so not all of them have switched.

The Victorian figures come from a first look at the gas companies' data by the Victorian Energy Future Network. The data hasn't been audited and the gas companies haven't checked the analysis, so treat them as early numbers.

What's changing in the rules?

A national commission writes the rules for how much gas pipe companies can charge. Until now, those rules assumed the number of customers would keep growing. It isn't any more.

In August 2026 the commission put out a draft of new rules. They would let the pipe companies recover more of their costs from today's customers, instead of spreading them over the years ahead. The head of the commission has said that could mean modest price rises for some people who keep using gas.

The final rules are due in December 2026.

Who's against the new rules, and why?

Consumer groups asked for the rules to be changed in the first place. They were worried the households left on gas would be stuck with the bill. They and 12 other community groups say the draft makes that worse.

• Consumer groups say it puts all of the cost on today's households and small businesses, and none of the risk on the companies' investors.
• The energy regulator, which signs off on gas prices, warned the draft could hurt customers. It said it would have little power to say no to a price rise that follows the rules, and that pipe companies have recently asked for increases that would have pushed bills up a lot.
• An independent energy research group worked out that, in the worst case, the draft could raise the pipes part of a gas bill by 38% to 49%.

The commission says the draft also gives the regulator a way to stop customers paying more than they should. The regulator says that safeguard would be too hard to use in practice.

The pipe companies support parts of the draft. One of them has told Victorian decision-makers its own modelling shows gas prices rising by about $100 a year per household. That figure comes from the gas industry, and consumer and community groups have questioned it.

Who ends up paying?

The households least able to leave. People who own their home and have the money can switch their hot water, heating and cooktop, then have the gas taken out. Renters can't make those decisions, and many lower-income households can't afford them, even with rebates.

We think that's the part worth saying plainly. Whatever the final rules say, the cost of the gas pipes is going to land hardest on the people with the fewest options.

What can you do if you're stuck on gas?

If you own your home, start with whatever costs you the most to run on gas. For most Victorian homes, that's heating and hot water. Our paper, Gas is now the expensive choice for Victorian homes, sets out what switching each appliance is worth. Once nothing in the house uses gas, having the connection removed costs at most $242, which is less than a year of supply charges.

If you rent, the gas connection belongs to the property, so the big changes are up to your landlord. Some of the savings don't need their permission:

• In Victoria, the Midday Power Saver gives you free electricity from 11am to 2pm every day. You don't need solar panels or to own your home, just a smart meter.
• In New South Wales, south-east Queensland and South Australia, Solar Sharer gives you at least three free hours a day. Whether it's worth it depends on how much you can move into those hours.
• The more of your home that runs on electricity, the more those free hours cover.

The free hours aren't right for every household. Our check takes about a minute and tells you whether you're likely to be better off, about the same or worse off. We don't sell electricity plans and we don't get paid when you switch.

Quick answers

Will my gas bill go up if other people leave gas?

Probably, over time. The pipes are paid for by whoever is still connected, so as more homes leave, each one left pays a bigger share. New national rules could make those rises come sooner.

How many Victorians are leaving gas?

About 11,000 Victorian homes a year are having their gas connection removed for good, and about 24,000 a year are having their meter locked or taken out. Homes used about a quarter less gas in 2025 than in 2020.

When will the new rules be decided?

The final rules are due in December 2026.

Can I stop paying the gas supply charge?

Only by disconnecting. The supply charge applies for every day you're connected, however little gas you use. Having the connection removed for good costs at most $242 including GST.

I rent. Can I get off gas?

Not without your landlord, because the connection belongs to the property. But you can usually take free-electricity offers like the Midday Power Saver or Solar Sharer without their permission, as long as you have a smart meter and can choose your own retailer.

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