As Victoria's crackdown on fossil fuels intensifies, homeowners in the state may be forced to spend thousands of dollars to upgrade dilapidated appliances to energy-efficient appliances.
The Allan government is considering a complete overhaul of the minimum energy efficiency standards to force landlords and owners corporations to upgrade old appliances to environmentally friendly new ones.
The proposed reforms could also affect owner-occupiers, who may be required to replace appliances such as gas cooktops with energy-efficient appliances when they reach the end of their life.
Others that could be affected include property owners who are not currently affected by regulatory changes, such as granny houses. The controversial move came as a shock to industry experts.
Energy Director Lily D'Ambrosio revealed the news in an interview with Real Estate Matters, the Real Estate Institute of Victoria's (REIV) podcast.
Podcast host Jacob Caine, president of REIV, asked D'Ambrosio if there could be a law that would force landlords and owners' corporations to switch to energy-efficient equipment, including replacing single-glazed windows with double-glazed windows.
He said, "Have you ever envisioned a situation...... i.e. legislation may be needed, e.g. mandatory replacement with double glazing by the government?"
D'Ambrosio confirmed that the government is weighing whether to expand the scope of enforcement, noting that this year's review will elaborate on compliance crackdowns.
"Whether it's windows or other things, apartment buildings or detached houses, I think it's going to start gradually raising the minimum standards for rental properties. ”
"Whether there should be some minimum standards for ceiling mounting, ventilation sealing, water heaters and refrigeration – all of these are options that can be explored. ”
Last year, the government had said existing homes would be affected in "all-electric Victoria" when it released its gas alternative roadmap.
Under the plan, all new homes will be barred from connecting to natural gas from January 1 this year, while several initiatives have been introduced to assist in the transition to all-electric homes, including lower cut-off fees.
D'Ambrosio believes Victorians can save thousands of dollars a year on their electricity bills through a "gas-to-electricity" switch, which she says property owners should see as "an investment rather than a cost".
Mr Caine said the further compliance measures "could send chills down the spines of our property management members and owners of investment properties".
However, he also said the need to transition from gas to electricity was "very clear" and that striking a balance between the costs and impacts of implementing higher standards was "critical".
Ross Jamieson, president of the Gas Appliance Manufacturers Association of Australia (GAMAA), slammed the idea, saying it would leave Victorian families "subject to high cost penalties" during the cost-of-living crisis.
"Independent research by GAMAA estimates that the cost of replacing gas appliances with electric alternatives is between $5,000 and $40,000, depending on the appliance and the size of the home. ”
"This policy will be more of a green ban for Victorians and will deprive consumers of choice and flexibility when it comes to cooking, heating and bathing in their own homes. ”
He added that the shift would be "catastrophic" for Victoria's gas appliance manufacturing industry.
The government will seek stakeholder input on possible changes by the end of the year.