If you have gas connected to your home, you're paying a daily supply charge whether you use a single cubic metre of gas or not. For many Australian households — especially those who've already replaced their gas hot water system or heater with electric alternatives — the daily gas supply charge has become a silent budget drain costing $300–$500 per year for the privilege of keeping a gas connection they barely use. Here's how to calculate whether that supply charge is worth paying for your situation.
What Is the Daily Gas Supply Charge and How Much Is It?
The daily supply charge (also called a standing charge or daily access fee) is a fixed cost your gas distributor charges simply for maintaining your connection to the gas network. It's charged every day, regardless of usage. When you see it on your bill, it's often listed as cents per day — which can look small until you multiply it out.
| State | Distributor | Typical Supply Charge (c/day) | Annual Supply Cost |
|---|---|---|---|
| New South Wales | Jemena / Evoenergy | 70–90c/day | $256–$329 |
| Victoria | Australian Gas Networks / Multinet | 75–95c/day | $274–$347 |
| South Australia | Australian Gas Networks | 80–100c/day | $292–$365 |
| Queensland | Jemena / APA | 65–85c/day | $237–$310 |
| Western Australia | ATCO Gas | 55–75c/day | $201–$274 |
| ACT | Evoenergy | 70–85c/day | $256–$310 |
The supply charge alone — before you've used a single megajoule of gas — costs the average Australian household $250–$365 per year. If you're using very little gas, this fixed cost can represent 30–60% of your total annual gas bill.
The Break-Even Calculation: When Is Gas Worth Keeping?
To determine whether keeping gas connected makes financial sense, you need to calculate whether the cost of replacing your remaining gas appliances with electric alternatives is offset by the supply charge savings over time.
The formula is simple: years to break even = cost of electric replacement ÷ annual supply charge saving.
| Remaining Gas Appliance | Electric Replacement Cost (installed) | Annual Supply Charge Saving | Break-Even (years) |
|---|---|---|---|
| Gas cooktop only | $800–$1,500 (induction) | $300–$365 | 2.5–5 years |
| Gas hot water only | $3,000–$4,500 (heat pump) | $300–$365 | 8–15 years |
| Gas hot water + cooktop | $3,800–$6,000 | $300–$365 | 10–16 years |
| Gas ducted heating only | $3,500–$6,000 (reverse cycle) | $300–$365 | 9–16 years |
However, this calculation only accounts for the supply charge. You also save on the gas commodity itself, and potentially benefit from cheaper electric running costs (especially with solar). Including these factors significantly shortens the real payback period — our specific cost breakdowns for converting gas hot water to electric and replacing a gas heater with reverse cycle show the full numbers.
When the Daily Gas Supply Charge IS Worth Paying
There are genuine situations where keeping gas connected and absorbing the supply charge makes financial sense:
- Multiple high-usage gas appliances: If you have gas ducted heating, a gas hot water system, AND a gas cooktop all in heavy use, the commodity savings often justify the supply charge — because the alternative electric running costs would be higher (especially without solar).
- Large household with high hot water demand: A large family with a properly sized gas hot water system may not save enough on running costs by switching to electric (without solar) to justify the replacement cost.
- Renting: As a tenant, you typically can't make capital improvements — in which case you have to work within the existing appliances and connection.
- Recent gas appliance installation: If your gas heater or hot water system is less than 5 years old, replacing it immediately may not make financial sense even accounting for the supply charge.
When the Supply Charge Is NOT Worth Paying
If you've already switched most of your appliances to electric and gas is only running your cooktop, or if you have solar panels that could power electric alternatives for near-zero cost, the supply charge becomes an obvious waste:
- Gas cooktop as the only remaining gas appliance
- Infrequent gas use — bill is mostly supply charge with minimal commodity use
- Solar panels that can power an induction cooktop and heat pump for free
- Plans to sell or renovate in a few years where all-electric positioning adds value
What Happens When You Disconnect Gas?
Disconnection is a straightforward process but involves some costs. You'll need to:
- Contact your gas retailer to initiate disconnection
- Pay a disconnection fee ($50–$200 depending on your state and distributor)
- Arrange for your gas meter to be removed (typically done within 10–30 business days)
- Have any gas appliances decommissioned by a licensed gas fitter ($150–$400)
Total disconnection cost: typically $200–$600. At a supply charge saving of $300–$365/year, this pays back in under 2 years.
Calculate Your Gas Disconnection Break-Even
Every household has a different mix of gas appliances, usage levels, and electricity costs. Use our Gas Disconnection Calculator to enter your current gas bill, remaining gas appliances, and location — and get a personalised break-even timeline and total lifetime saving from disconnecting gas.