Disconnection vs abolishment
There are currently two pathways for disconnecting your gas supply, and they come with relative (and only partially unregulated) fees and a range of logistical complications.
One is disconnection where the connection to the mains supply is severed and capped, the second is abolishment of the gas pipe and meter from your property altogether. The first option for cease of service is to either cap supply at the meter (a temporary disconnection that can be reversed by removing the cap later) or to have the meter itself removed while connecting pipes are retained.
In both cases, safety issues arise because live (pressurised) gas pipes remain underground. While disconnection is generally cheaper than abolishment, they raise issues such as the safety aspect of live gas pipes remaining underground and the costs to maintain this unused service. Connection abolishment involves disconnecting a customer’s premises at the street, removing the meter, and making the site safe. Some distributors say they will ask for enough information from the customer so they can determine the appropriate disconnection method.
Fee schedules
There are fee schedules for each state, and sometimes they can vary according to region and proximity. It’s important to remember that depending on where you are, and the distance between your house and the mains connection, it could be a lot of work for the distributor to remove the meter and the pipes back to the street. It could be a lot of disturbance to the householders too. In some cases, it may be easier to stop getting gas bills by simply finalising your account with your retailer instead of moving towards full abolishment.
The bigger picture for consumer rights when it comes to not having the network fees passed on by the retailers is currently underway. There is discussion by the regulators and the gas industry over whether levying abolishment costs on individual disconnecting consumers (as an ancillary service) is the most appropriate way forward. The regulators are proposing that distributors delineate between residential (small) customer connection abolishment, which should be a reference service, (meaning it is a service provided to customers and the charges must be recouped) and business (large) customer connection abolishment, which should be a non-reference ancillary service, or one that is not charged.
As more customers choose to move from gas to other sources of energy, the costs of removing connection assets for individual premises—abolishing the connection permanently— have come under scrutiny. The abolishment service currently reflects the labour cost of staff attending the customer’s premises to perform the task. It does not incorporate any contribution to shared network cost recovery – it is not an exit fee.
From July 1, 2023, Victorian gas distribution networks have a new regulated price of $220 set by the Australian Energy Regulator for full abolishment. The regulated charge to households leaving the gas network assumes that remaining gas customers will pay the remainder of the cost of abolishment through increased ongoing fees – raising the possibility of a classic network death spiral. The cost of disconnection (rather than abolishment) remains unchanged and may typically be lower than the $220 charged for abolishment. Federal regulation of gas abolishment and disconnection fees is currently being determined.
