Why Perth Households Are Ditching Gas (And What It Costs)

Here's a number most Perth households don't think about: $321 per year. That's what you pay just to stay connected to the gas network — before you use a single megajoule. For a growing number of WA households, that supply charge alone is more than the gas they actually consume.

What Your Gas Bill Actually Looks Like

A typical Perth gas bill runs $150-200 per quarter. But when you break it down, the picture gets uncomfortable fast.

Supply charge: Around $80-90 per quarter ($321/year) just for having the connection. This is fixed — you pay it whether you cook once a week or run the gas ducted every night.

Usage charge: The rest goes on actual gas consumption. For households that only use gas for cooking and hot water, usage can be as low as $60-80 per quarter.

That means 40-50% of your gas bill is the privilege of being connected. If you're a low-usage household — no gas heating, just a cooktop and storage hot water — the supply charge can hit 55-60% of your total bill. You're paying $321 a year for the right to pay more.

What It Actually Costs to Switch

The upfront costs are real. But so are the savings. Here's what the numbers look like in Perth right now.

Gas hot water to heat pump: The best first move

• Installed cost: ~$4,000 (315L heat pump, typical Perth install)
• STC rebate: ~$920 (roughly 23 STCs at $39.90 each)
• Net cost: ~$3,080
• Annual savings: $400-600 (eliminates gas HW usage + proportional supply charge reduction)
• Payback: 5-6 years

This is the single best electrification upgrade for most Perth homes. Heat pumps use about a third of the energy of a gas storage system, they qualify for federal STCs, and they're dead reliable in our climate. Our recommendation: start here.

Gas cooktop to induction: The health play

• Installed cost: $1,500-2,500 (cooktop + potential wiring upgrade)
• Annual savings: ~$120 (modest — gas cooking is cheap)
• Payback: 10-15 years on pure economics

The payback period looks long, but the real value isn't on the bill. Gas cooktops produce nitrogen dioxide (NO2) and carbon monoxide indoors — pollutants linked to 12.3% of childhood asthma cases in Australia. Induction is faster, safer, and doesn't poison your kitchen air. Once you cook on induction for a week, 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 savings: $300-600 (heat pumps are 3-5x more efficient than gas)
• Payback: 8-12 years

Perth's mild winters mean gas ducted heating runs maybe 3-4 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 is approaching end-of-life (15+ years), this is a no-brainer replacement.

When to Make the Switch

Our advice: replace on death, not on impulse. If your gas hot water system is 8 years old and working fine, don't rip it out tomorrow. But when it fails — and storage gas HW typically lasts 10-12 years — replace it with a heat pump, not another gas unit.

The worst financial move is replacing a functioning gas appliance with another gas appliance. You lock in another decade of supply charges and gas dependence right when 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 eliminates supply charges permanently.

The Full Electrification Payoff

Here's where the maths gets compelling. Switching individual appliances saves money on usage, but you're still paying that $321/year supply charge. When you replace all gas appliances and disconnect the gas line, the supply charge disappears entirely.

| Upgrade | Net Cost | Annual Savings | |---------|----------|----------------| | Heat pump HW | $3,080 | $500 | | Induction cooktop | $2,000 | $120 | | Reverse cycle (if gas heating) | $6,500 | $450 | | Gas disconnection | $0-200 | $321 | | Total | ~$11,780 | ~$1,391/yr |

Combined payback drops to about 8.5 years — and that's before accounting for electricity cost inflation (gas has historically risen faster than electricity in WA). Add rooftop solar and the payback compresses further.

Still Have Gas? Get on the Right Plan

While you're still connected, there's no reason to overpay. Most Perth households are on a default gas plan that's $100-200/year more expensive than the best deals available.

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

Check out 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 need to do everything at once. Start with hot water when your current system dies. Add induction when the cooktop goes. Replace the gas heater with a split system. Each swap chips away at that gas bill until one day you disconnect the line entirely — and pocket $321 a year just for not having a gas meter.

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