Solstice Energy to cut gas supply to 10 regional Victorian towns
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Regional Victorian residents in 10 towns reliant on standalone gas networks are in shock after learning their supply will be cut off by the end of next year.
Solstice Energy has announced it will phase out its compressed natural gas (CNG) networks in Robinvale, Swan Hill, Kerang, Nathalia, Marong, Maldon, Heathcote, Terang, Lakes Entrance and Orbost.
It means 1,145 natural gas customers will be forced to switch to electric heating and cooking appliances or transition to bottled gas by late 2026.
Marong resident Emily Edgar estimated it would cost $28,000 to convert her home from its current compressed gas supply to a fully electric system.
"How are we going to find $28,000 in 16 months? It's impossible," she said.
"If [the government] want us off gas, there's no point spending the money to switch to bottled gas, to then pay more again to switch to electric eventually.
"This could crush so many households. They're going to be looking at loans or going to have to sell up — but then who's going to buy?"
The affected communities are unique in Victoria as they are on isolated gas networks, which rely on Solstice Energy compressing gas and then trucking it to the towns.
Ms Edgar is a member of the Electrify Marong Committee — a campaign to transition the Central Victorian town off gas to only electricity.
She said financial assistance was necessary as many people were ineligible to access Victorian government subsidies due to their income, or having accessed them in the past.
"If Solstice is cutting us off, the government needs to step in and support these 10 rural communities because we're already struggling with the cost of living," Ms Edgar said.
A Solstice Energy spokesperson said the service was no longer viable for customers or the business due to costs.
"We have now had to implement a further price rise for customers, so we want to find a better option for them," the spokesperson said.
"Rather than continuing to raise prices in the future, we are instead supporting our customers [to] switch to bottled LPG or electricity and then closing the CNG networks by the end of 2026."
The spokesperson said customers who chose to shift to electric appliances could be financially assisted to do so.
Solstice Energy has also committed to funding and arranging ways for existing gas appliances in the affected towns to use bottled Liqufied Petroleum Gas (LPG).
Time to convert 'just insane'
Fellow Marong resident and Electrify Marong Committee member Vic Cresp said the announcement came as a shock.
"The idea is to convince people that gas was too expensive and the cheaper alternative is electricity, especially if you can get solar, and now batteries are in the equation too," he said.
"The better option now is to go electric, but with the economic climate and people struggling, I don't know how they're going to afford it."
Lane Li, who runs an accommodation village and a popular Asian restaurant at Robinvale in north-west Victoria, said he was convinced to convert the village's hot water services and stovetops from LPG to compressed natural gas in 2021.
"If we knew we would only have the service for five years, we wouldn't have done it," he said.
"If they close the compressed gas service, that means we'll have to convert it back to the bottled one, which is going to be a pain for our business."
Mr Li said electric hot water services were not as reliable or efficient as gas, so he would likely opt for LPG, despite concerns about the supply limitations of bottles.
"We're big gas users in the area and with bottled gas … it's going to be very hard," he said.
"In peak season we have 100 people staying at our accommodation village … and if we don't time [deliveries] well, basically, we'll run out of gas."
Environment Victoria senior climate and energy advisor Kat Lucas-Healey said it was essential communities were in a good position to make the switch.
"The government's recent decisions to improve minimum rental standards and begin the systematic introduction of heat pump water heaters will make sure that households aren't stuck paying exorbitant gas bills, or going cold to avoid them," Dr Lucas-Healey said.
"Victorian home owners who haven't yet thought about how they want to go electric should look into the savings they're missing out on and start making a plan."
The state government has been contacted for comment.
Solstice Energy has announced it will phase out its compressed natural gas (CNG) networks in Robinvale, Swan Hill, Kerang, Nathalia, Marong, Maldon, Heathcote, Terang, Lakes Entrance and Orbost.
It means 1,145 natural gas customers will be forced to switch to electric heating and cooking appliances or transition to bottled gas by late 2026.
Marong resident Emily Edgar estimated it would cost $28,000 to convert her home from its current compressed gas supply to a fully electric system.
Residents in 10 Victorian towns will soon have to buy bottled gas or go electric. (ABC News: Matt Brown)
"How are we going to find $28,000 in 16 months? It's impossible," she said.
"If [the government] want us off gas, there's no point spending the money to switch to bottled gas, to then pay more again to switch to electric eventually.
"This could crush so many households. They're going to be looking at loans or going to have to sell up — but then who's going to buy?"
The affected communities are unique in Victoria as they are on isolated gas networks, which rely on Solstice Energy compressing gas and then trucking it to the towns.
Ms Edgar is a member of the Electrify Marong Committee — a campaign to transition the Central Victorian town off gas to only electricity.
She said financial assistance was necessary as many people were ineligible to access Victorian government subsidies due to their income, or having accessed them in the past.
The company says it will switch customers over to bottled gas by the end of 2026. (ABC Central Victoria: Anna McGuinness)
"If Solstice is cutting us off, the government needs to step in and support these 10 rural communities because we're already struggling with the cost of living," Ms Edgar said.
A Solstice Energy spokesperson said the service was no longer viable for customers or the business due to costs.
"We have now had to implement a further price rise for customers, so we want to find a better option for them," the spokesperson said.
The spokesperson said customers who chose to shift to electric appliances could be financially assisted to do so.
Vic Cresp is a Marong resident and a member of the Marong Community Action Group. (ABC Central Victoria: Anna McGuinness
Solstice Energy has also committed to funding and arranging ways for existing gas appliances in the affected towns to use bottled Liqufied Petroleum Gas (LPG).
Time to convert 'just insane'
Fellow Marong resident and Electrify Marong Committee member Vic Cresp said the announcement came as a shock.
"The idea is to convince people that gas was too expensive and the cheaper alternative is electricity, especially if you can get solar, and now batteries are in the equation too," he said.
Lane Li, who runs an accommodation village and a popular Asian restaurant at Robinvale in north-west Victoria, said he was convinced to convert the village's hot water services and stovetops from LPG to compressed natural gas in 2021.
The Robinvale Accommodation Village can have upwards of 100 patrons during peak season. (Supplied: Lane Li)
"If we knew we would only have the service for five years, we wouldn't have done it," he said.
"If they close the compressed gas service, that means we'll have to convert it back to the bottled one, which is going to be a pain for our business."
Mr Li said electric hot water services were not as reliable or efficient as gas, so he would likely opt for LPG, despite concerns about the supply limitations of bottles.
"In peak season we have 100 people staying at our accommodation village … and if we don't time [deliveries] well, basically, we'll run out of gas."
Environment Victoria senior climate and energy advisor Kat Lucas-Healey said it was essential communities were in a good position to make the switch.
"The government's recent decisions to improve minimum rental standards and begin the systematic introduction of heat pump water heaters will make sure that households aren't stuck paying exorbitant gas bills, or going cold to avoid them," Dr Lucas-Healey said.
"Victorian home owners who haven't yet thought about how they want to go electric should look into the savings they're missing out on and start making a plan."
The state government has been contacted for comment.
