The Vic gas network is not financially sustainable with a declining customer base.

 Fewer customers means higher connection fees which means fewer customers...

VEFN modelled this. 

A chaotic collapse will be good for no-one.  We need a plan for the transition. 

We're seeing a preview now, with the sudden shutdown of Solstice Energy's supply of natural gas to 10 Victorian towns.

Up to 2% of the gas entering the Victorian gas network leaks before it reaches consumers.

That's another reason why it's important to retire the network quickly, safely and equitably.

We are proposing a 3 phase plan for an orderly, safe and equitable retirement of the residential gas networks in Victoria.

The proposal: mandate transition plans from gas companies, create a Gas Transition Authority to manage the phase-out, (working zone by zone to pre-invest in the electricity network ahead of retirement of gas), and set a clear 2045 end date so people aren't stuck investing in appliances that become stranded assets.

We've also proposed this framework could be adopted nationally in our submission to the AEMC.

If the government buys back the networks, what is "fair value"?

The Regulated Asset Base book value is based on history. Looking forward gives a very different picture.

Any pathway must confront a fundamental conflict: how to determine a fair value for an asset whose future earnings have been deprecated by climate change, technology / efficiency improvements and government policy.  

Our submission to the Victorian Legislative Council discusses this.