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Tim Bull slams costly CNG transition hitting Lakes Entrance and Orbost households, businesses unfairly

Nationals MP Tim Bull has condemned the state government for leaving Lakes Entrance and Orbost households facing unfair costs in transitioning from CNG, criticising inadequate support for electricity compared to LPG.

By news@gippsland - 18th August 2025 - Back to News

Nationals Member for Gippsland East, Tim Bull, has blasted Premier Jacinta Allan's "tone-deaf" response to Lakes Entrance and Orbost residents facing major costs to transition from the compressed natural gas (CNG) network. Households and businesses in 10 regional centres, including Lakes Entrance and Orbost, face significant out-of-pocket expenses to switch from CNG to electricity.

Nationals MP Tim Bull criticised Premier Allan's response, saying Lakes Entrance and Orbost residents face unfair CNG transition costs, with electricity support lagging behind LPG

Electricity users disadvantaged

Those opting for LPG are receiving far greater support, while those choosing electricity are being offered only minimal assistance. "This situation has arisen because the state government allowed Solstice Energy (formerly Tas Gas) to exit a 20-year agreement halfway through its term. In approving this, the government should have ensured no household or business faced transition costs - regardless of whether they chose LPG or electricity."

In Parliament, Mr Bull urged the Premier to reconsider but said government MPs initially denied any State responsibility. However, Solstice confirmed in writing that "the early exit of the agreement and decommissioning of the gas networks has been agreed with the Victorian government."

"It beggars belief the government would agree to this knowing it would financially hurt households and businesses. Solstice has openly stated their payment won't cover the cost of replacing gas appliances with electric ones. Why sign off on such a deal?" said Mr Bull.

Unexpected transition costs

Merilyn Beechey, who installed a gas fire heater after she and her husband could no longer collect firewood themselves, says she is deeply concerned. "This has come as a terrible shock. We converted our wood heater to a gas log fire to keep us warm over winter. This announcement has come completely out of the blue with no contact, which has been disappointing. I just hope they stay true to covering all costs to transition to LPG as stated as we should not be punished financially," Mrs Beechey said.

Melissa Stevens, who runs Indoor N Out Cleaning Services and Laundromat in Orbost, said the unexpected transition has left local businesses anxious about unfair costs. "For my business, I need Solstice Energy to commit to maintaining my supply at no transition cost as I had every reason to believe my gas supply would be ongoing. We should not be left out of pocket for what has been forced upon us," Ms Stevens said.

Power transition politics

Mr Bull also questioned why the government supported a stronger transition package for LPG than electricity, despite Energy Minister Lily D'Ambrosio in 2023 urging Victorians to move away from gas to efficient electric appliances.

"Two years ago she stated: 'We're ensuring Victorians aren't locked into expensive fossil gas prices and sky high energy bills - helping them switch to efficient electric appliances' adding 'it's time to put gas on the back-burner'. Now they're backing a deal to push LPG over electricity - it's running with the foxes and hunting with the hounds."

"In 2015, then Premier Daniel Andrews promised to deliver the Energy for the Regions program. In Parliament, Premier Allan dodged my question on whether the State will assist those out of pocket, preferring to talk about history rather than the real issue. Her arrogance was at its peak," Mr Bull said.

Pictures from Tim Bull MP website.

Source: www.gippsland.com

Published by: news@gippsland.com

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