Why Perth households are ditching gas (and what it costs)

Here's a number most Perth households don't think about: the gas supply charge. Depending on your retailer, it runs ~$100-200/year just to stay connected to the network, before you use a single megajoule. For a growing number of WA homes, that supply charge alone is more than the gas they actually burn.

What your gas bill actually looks like

A typical Perth gas bill runs $150–200 a quarter. Break it down and the picture gets uncomfortable.

Supply charge: around $30-50 a quarter (~$100-200/year, depending on your retailer) just for having the connection. It's fixed. You pay it whether you cook once a week or run the ducted heating every night.

Usage charge: the rest is the gas you actually use. For a household that only cooks and heats water with gas, that can be as low as $60–80 a quarter.

So 40–50% of your gas bill is the privilege of being connected. For a low-usage home — no gas heating, just a cooktop and storage hot water — the supply charge can hit 55–60% of the total. You're paying ~$100-200/year (varies by retailer) for the right to pay more.

What it actually costs to switch

The upfront costs are real, and so are the savings. Here's what the numbers look like in Perth right now. Treat them as indicative — your figures depend on your home, your usage, and install pricing on the day.

Gas hot water to heat pump: the best first move

• Installed cost: about $4,000 (315L heat pump, typical Perth install)
• STC rebate: about $920 (roughly 23 STCs at $39.90 each — STC prices move)
• Net cost: about $3,080
• Annual saving: $400–600 (drops the gas hot water usage plus a share of the supply charge)
• Payback: 5–6 years

For most Perth homes this is the single best electrification upgrade. A heat pump uses about a third of the energy of a gas storage system, it qualifies for federal STCs, and it's reliable in our climate. Our pick: start here.

Gas cooktop to induction: the health play

• Installed cost: $1,500–2,500 (cooktop plus any wiring upgrade)
• Annual saving: about $120 (modest — gas cooking is cheap)
• Payback: 10–15 years on pure economics

The payback looks long, but the real value isn't on the bill. Gas cooktops give off nitrogen dioxide (NO2) and carbon monoxide indoors — pollutants linked, in a 2018 Medical Journal of Australia study, to 12.3% of childhood asthma in Australia. Induction is faster, safer, and doesn't put combustion products into your kitchen air. Cook on it for a week and you won't want to go back.

Gas ducted heating to reverse cycle: the comfort upgrade

• Installed cost: $5,000–8,000 (depends on ducting and zones)
• Annual saving: $300–600 (heat pumps are three to five times more efficient than gas)
• Payback: 8–12 years

Perth's mild winters mean gas ducted heating runs maybe three or four months a year. A reverse-cycle system handles heating and cooling, filters the air, and runs at a fraction of the cost. If your gas ducted unit is near end-of-life (15+ years), this is an easy call.

When to make the switch

Our advice: replace on death, not on impulse. If your gas hot water system is eight years old and working fine, don't rip it out tomorrow. But when it fails — and gas storage hot water typically lasts 10–12 years — replace it with a heat pump, not another gas unit.

The worst financial move is swapping a dead gas appliance for another gas appliance. You lock in another decade of supply charges and gas dependence right when the electric alternatives are cheaper to run.

The exception: if you're renovating or building new, go all-electric from the start. No gas connection saves $2,000–4,000 on the build and ends the supply charge for good.

The full electrification payoff

Here's where the maths gets interesting. Switching one appliance saves on usage, but you're still paying that supply charge (~$100-200/year). Replace all your gas appliances and disconnect the line, and the supply charge disappears entirely.

| Upgrade | Net cost | Annual saving | |---------|----------|----------------| | Heat pump HW | $3,080 | $500 | | Induction cooktop | $2,000 | $120 | | Reverse cycle (if gas heating) | $6,500 | $450 | | Gas disconnection | $0–200 | ~$100-200 | | Total | ~$11,680 | ~$1,170-1,270/yr |

On these illustrative figures for a fully-gas Perth home, the combined payback lands around 9-10 years — and that's before electricity-versus-gas price trends, since gas has historically risen faster than electricity in WA. Add rooftop solar and the payback shortens further. Run your own numbers to see where you land.

Still have gas? Get on the right plan

While you're still connected, there's no reason to overpay. Plenty of Perth households sit on a default gas plan that's $100–200 a year dearer than the best deals around.

Alinta's Fair Go 40 and Kleenheat's Smart Saver both offer real discounts over standard rates. If you're paying full price on ATCO gas, switching plans takes about 10 minutes and could save $100–200 a year while you plan your electrification timeline.

Check our gas plan comparison to find the cheapest deal for your usage.

The bottom line

Gas made sense when there was no alternative. Now there is. Heat pumps, induction cooktops, and reverse-cycle air conditioning are cheaper to run, better for your health, and increasingly cheaper to buy.

You don't have to do everything at once. Start with hot water when the current system dies. Add induction when the cooktop goes. Swap the gas heater for a split system. Each step chips away at the gas bill until, one day, you disconnect the line and pocket ~$100-200/year just for not having a gas meter (varies by retailer).

Ready to run the numbers? Calculate your electrification savings → to see what ditching gas saves your household, or compare gas plans first → so you're not overpaying while you plan the switch.