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South Australians Could Save $500 Annually by Switching from Gas to Electricity, Report Finds

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SA households could save up to $500 a year by switching from gas to electricity, according to a new report from Energy Consumers Australia (ECA).

That figure could rise to $750 annually by 2035 as gas bills continue to climb.

Rising Costs for Gas Users

A typical South Australian home using gas appliances faces a 64% increase in its total gas bill over the next decade, with costs projected to rise 265% by 2050. These steep increases are driven by a shrinking customer base, as more households electrify.

“Those unable to leave the gas network may face higher bills as costs are spread over fewer customers,” said ECA acting CEO Brian Spak.

Barriers to the Transition

While the long-term savings are significant, upfront costs remain a major obstacle — particularly for low-income households and renters who cannot choose or replace their appliances.

ECA Recommendations

To address these challenges, the ECA has proposed a timeline for a mandatory transition:

  • By 2028: All new households and small commercial buildings to be fully electric.
  • By 2035: All social and community housing to be electrified.
  • By 2040: All rental homes to be electrified.
  • By 2050: All homes to be fully electric.

The report also recommends requiring landlords to replace gas appliances with efficient electric alternatives at the end of their life.

Government Response

A South Australian government spokesperson stated that it is not state policy to discourage gas connections, noting that gas is considered “an important firming fuel in the energy transition.”

The spokesperson confirmed there are no policies encouraging or incentivizing customers to reduce or discontinue gas use.

Stakeholder Views

Catherine Earl, chief executive of SACOSS, called for urgent government support for low-income households and renters to make the transition financially feasible.

SA resident Jean-Marc Spiler, who lives in a fully electric home, reported 50–60% power savings and advocated for government financing to help others electrify.