Victoria's energy regulator has confirmed plans to cut incentives for new gas connections as the state transitions away from fossil fuels.
The Essential Services Commission's new code of practice for gas distributors will also require distributors to provide customers with information on how to disconnect their gas connections.
From January 1, customers will pay between $1800 and $2400 up front to connect to the gas network.
The regulator had foreshadowed changes to the current system, under which connection costs are gradually paid back through network charges.
Commission chair and commissioner Kate Symons said the new code would deliver a fairer and more efficient system for Victorians and bring the issue into line with water and electricity connections.
"Under the existing system, the cost of new connections is shared across the whole network, so existing customers subsidise the cost of new connections," Ms Symons said.
"The user-pays system in the new code will shift the financial burden for new connections away from the network as a whole."
Residential customers and developers who fall outside Victoria’s Gas Substitution Roadmap ban on new gas connections will also pay for their connections up-front.
The commission said the changes would affect a small number of commercial customers moving to or building in areas not served by the gas network.
But there will be no charge for industrial or larger commercial operators.
“This will support Victoria’s energy transition to net zero emissions and incentivise customers to choose more efficient and cheaper-to-run electrical appliances during the transition from fossil gas to electricity,” Ms Symons said.
The new code takes effect from October 1.
