Albany residents cut off from mains gas to get compensation

Thousands of homes and businesses in the Western Australian city of Albany will receive compensation to help them transition away from mains gas. The state government announced a $21 million package to address the decommissioning of the gas network by supplier ATCO.

“

We know that gas is a transition fuel. Over the medium to long term, electrification is going to be the future.

ATCO, a Canadian infrastructure company, decided to walk away from its contract to supply gas to Albany earlier this year, citing the $80 million cost to maintain the aging network. The company has voluntarily contributed $5.5 million to the state government's compensation fund. The remaining $15.5 million comes from the state government.

The compensation package aims to assist the approximately 6,000 customers affected by the gas network's closure. The government estimates the transition to gas bottles could cost $1,600 per customer. This funding can also be allocated towards electrification, a move supported by Energy and Decarbonisation Minister Amber-Jade Sanderson, who views electrification as the future.

“

When you look at the potential cost of that, it's over $200 million for the number of customers. So I think the economics have swayed that argument.

However, Albany Mayor Greg Stocks expressed concerns about the potential cost of electrification, estimating it could exceed $10,000 per customer. He urged residents to await the official announcement of how to access the package before making any decisions. The government also plans to offer free energy audits to commercial businesses heavily reliant on gas.

“

What I will say to customers, do nothing until you know how you can access this package. If you do this before the package is announced, you run the risk of not being able to access that fund.