WA offers $2,000 electrification aid as Albany gas network shuts

The Albany Gas Distribution System is set for decommissioning in Western Australia. The network is owned by Atco Australia, the local arm of the Canadian Atco Group. The decommissioning process will proceed in phases over the coming months.

Financial Support Structure

The Western Australian Labor government has allocated $10.8 million to support the transition away from the decommissioning Albany gas network. This funding underpins an electrification incentive offering up to $2,000 per property for the replacement of gas appliances with electric alternatives. The program is designed to assist the 8,000 residential and business customers currently connected to the distribution system.

Rather than providing cash grants directly to property owners, the scheme requires that funds be paid directly to registered tradespeople.

Alternative Transition Paths

• Fuel type: Liquified petroleum gas (LPG).
• Alternative transition: State covers costs for switching to bottled LPG.
• Complex cases: Additional support provided on a case-by-case basis.
• Large business support: Funding determined by government-funded energy audits.

For properties where electrification is not feasible, the state covers the costs of switching to bottled LPG.

Larger businesses receive support based on government-funded energy audits.

In complex cases, additional support is provided on a case-by-case basis.

Regulatory Context

The Albany decommissioning follows the shutdown of a private gas network in Esperance, Western Australia.

WA Energy Minister Amber-Jade Sanderson has pushed the start of the decommissioning process to early 2027. This timeline provides a specific window for the 160 km of pipelines to be safely removed from service.

Victorian Comparisons and Customer Management

In Victoria, Solstice Energy announced it would cease supply to approximately 1,145 homes across 10 regional towns, citing that isolated gas networks had become too expensive to operate. While Victorian customers opting for electrification receive a payment of around $2,000, they are expected to self-manage the entire process. In contrast, Solstice provides hands-on assistance for those switching to bottled LPG, covering the cost of the gas fitter and supplying a list of approved providers. The Albany transition mirrors this structure, where the government concedes that switching to bottled gas is often the most straightforward approach because it avoids appliance replacement. For the Esperance shutdown in Western Australia, regional state-owned utility Horizon Power claimed it effectively had only one year to transition more than 400 customers to electric appliances following the local distribution company’s determination that the business was no longer viable. Atco Australia formally announced its decision to decommission the Albany system in January, with the state government setting aside funds in April and Minister Amber-Jade Sanderson confirming the delayed start date in May.

What to watch

The physical decommissioning of the 160 km pipeline network will proceed in staged phases over three years, beginning in early 2027. While this timeline sets the operational schedule for safety and removal, specific criteria defining which applications qualify as "complex cases" remain undefined.