Albany gas network shutdown drives household conversion costs for ATCO customers

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Albany gas network shutdown costs

Highlights

ATCO Australia will decommission Albany's gas network over the next three years, requiring households to convert appliances to electricity or bottled gas.
The $31 million support package includes $5 million from ATCO, with households moving to bottled gas fully covered and electrification capped at $2,000, far below estimated $10,000–$12,000 costs.
Criticism intensified after it was revealed customers were informed eight months after decommissioning discussions began, prompting calls for a larger compensation package to support electrification.

Conversion costs and shutdown timeline

As reported by ABC News, ATCO Australia plans to decommission its Albany gas network over the next three years, forcing residents connected to the system to either convert their appliances to electricity or shift to bottled gas.

Architect Michael Roberts said the decision came as a surprise after he spent tens of thousands of dollars fitting out his new Middleton Beach home with gas appliances for cooking and heating. He estimates replacing those appliances with electric alternatives would cost about $10,000 to $12,000, far above the support available for customers choosing electrification.

The broader $31 million package includes $5 million from ATCO and covers the cost for customers moving to bottled gas, while households going electric can access up to $2,000 in compensation. Roberts said that level of assistance would cover only a fraction of his likely costs, and he now expects he may stay with bottled gas even though he would have preferred to go straight to electric had he known earlier.

Pressure on electrification strategy in Western Australia

Roberts said the timing of the announcement has also affected clients of his architectural firm, arguing that homeowners and design professionals had been selecting gas systems in good faith without being told the network was due to close. Criticism of ATCO and the Western Australia government intensified after documents obtained by the ABC showed decommissioning discussions took place eight months before customers were informed.

Energy Minister Amber-Jade Sanderson said that after unsuccessful talks to keep ATCO in Albany, her preference is for residents to move off gas entirely. She said gas is not the long-term fuel for Western Australia and described it as a transition fuel, with electrification the ultimate goal for Albany households.

Energy analyst Ray Wills said moving from gas to electricity is the right long-term step, but he argued the package needs to be larger if authorities want to discourage a shift to bottled gas. City of Albany Mayor Greg Stocks also said the budget is too small to deliver broad electrification, saying households could face costs well above $10,000 once items such as heat pumps and reverse-cycle air conditioning are included.

Our earlier coverage of the Bank of England’s assessment of the energy price shock noted that UK policymakers believe the economy has absorbed higher energy costs better than initially expected, supported by fiscal measures and central bank interventions. At the same time, officials stressed that inflation and market volatility remain key risks that require close monitoring and flexible policy responses as energy-related pressures persist.

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