Albany residents cut off from mains gas to get compensation

Gas supplier ATCO announced it was decommissioning its mains gas network in the regional city of Albany, about 420 kilometres south of Perth, earlier this year. With no contractual obligations to compensate its customers for the cost of transitioning away from mains gas, ATCO has voluntarily contributed $5.5 million to the state government's $21 million fund, announced today. What's next? Works to decommission the network will begin before the end of July 2027, and is estimated to take three years to complete. Thousands of residents and business owners who were forced off mains gas will be eligible for compensation to fund the switch to mains gas or electricity, the state government has announced. The $21 million package includes $5.5 million from ATCO, the Canadian infrastructure company, which in January walked away from its contract to supply reticulated gas to Albany. It said it did not want to foot the $80 million bill to maintain the aging network. About $16 million of the package has been set aside to compensate the 6,000 small businesses and homes that will need to transition away from mains gas. The government has estimated the standard cost of transitioning to gas bottles at $1,600 per customer, which they can allocate towards electrification instead. Energy and Decarbonisation Minister Amber-Jade Sanderson told the ABC that while the package assumed most people would opt for LPG bottles, WA Labor government still wanted people to electrify. "We know that gas is a transition fuel," she said. "Over the medium to long term, electrification is going to be the future. "Ultimately, people want a choice whether they continue with gas or whether they put that funding towards electrification." But Albany Mayor Greg Stocks said the cost of electrifying could be upwards of $10,000 per customer. "When you look at the potential cost of that, it's over $200 million for the number of customers," he told the ABC. "So I think the economics have swayed that argument." He urged residents to wait until the funding was available before taking action. "What I will say to customers, do nothing until you know how you can access this package," Mr Stocks said. "If you do this before the package is announced, you run the risk of not being able to access that fund." As part of the announcement, the state government said it was carrying out an assessment to ensure the region had enough plumbers and gas fitters to lead the switch locally. It will also offer free energy audits to businesses, like restaurants, that use a lot of gas. Works to decommission the network will begin before the end of July 2027, and is estimated to take three years to complete. More information on the transition and customer eligibility will be announced in October.