NSW apartment blocks trying to electrify face "Robogas" barrier

Sean Cowan from Wattblock investigates the challenges of NSW strata buildings trying to switch common hot water plants from gas to electric heat pumps....

The journey towards sustainability is not without its challenges, and for apartment buildings transitioning from gas to electric heat pump hot water systems, these challenges can sometimes come from an unexpected source.

In New South Wales, apartment buildings have encountered a frustrating set of issues surrounding the disconnection of their gas lines. These issues revolve around Jemena, the gas supply monopoly in NSW, which has been accused of imposing unreasonable fees and practices that hinder the switch to more energy-efficient solutions.

For apartment complexes with common gas hot water and individual apartment hot water meters, the process of transitioning to electric heat pump systems is a logical step towards reducing carbon emissions and energy costs. 

Heat pump systems are super-efficient, using electricity to extract heat energy from the ambient air to heat the water. The systems can produce up to three times more energy than they consume, leading to significant reductions in carbon emissions and substantial energy savings over time.

The complexities of the transition from gas to heat pump arise when dealing with Jemena's charges for disconnecting gas services. Strata communities and apartment owners are finding themselves facing exorbitant costs of ~$2,000 for the removal of gas meters that Jemena owns. Adding to the frustration, they are being slapped with high disconnection fees of ~$165 for hot water meters that will no longer be used but are meant to remain in place.

Perhaps one of the most baffling scenarios faced by apartment buildings is the continued billing for gas consumption even after the complete "degasification" of the apartments. Despite the installation of an electric heat pump and the cessation of gas usage, Daniel Butlin found himself burdened with charges for his supposed "share" of the common hot water gas consumption – a consumption that was no longer taking place.

“I should have mentioned one more issue we are having with the change over from gas. After nearly 4 years from when the gas was cut off we are still receiving gas bills. We have even had them dig up the street and physically remove the pipes. Still getting bills. My personal debt with my supplier is now over $3k, obviously it’s not payable but it’s on my credit rating.” 
Daniel Butlin,Committee Member SP78602 Generation W

Similarly, a block of 18 apartments in Neutral bay recently did an upgrade did an upgrade of the centralised gas hot water service to a heat pump and are now up for a bill of up to ~$18,000 in regulated charges to Jemena.
Zinfra, via Jemena, are turning off people’s hot water without warning and the residents have no ability to cease daily supply charges, even though there is no further use of gas.

According to Saul Griffiths, author of The Big Switch and founder or Rewiring Australia "The AER somehow some-when [sic] granted this authority to the gas companies (Jemena) and it would add $7bN to the price tag of decarbonizing australia. This is a  fight worth winning."

Interestingly, this situation is confined to NSW, as other Australian states like Victoria and Queensland do not face the same challenges. The absence of a state monopoly on gas distribution in these regions allows for a more streamlined transition to electrification of common hot water systems and other gas plant without the added burden of questionable fees and practices.

​Contributor:
Sean Cowan
Energy Consultant
​Wattblock