Media Release
Australians are once again feeling the sting of global energy instability. From petrol price spikes to looming gas supply concerns, households are exposed. According to the Energy Efficiency Council, the solution is clear. Electrify homes, improve efficiency, and reduce reliance on fossil fuels.
In a new call to action, the Council urges all levels of government to accelerate support for efficient electric homes. The goal is simple. Lower energy bills, strengthen resilience, and future-proof Australian households.
Global shocks are hitting home
Australia is facing its third major global energy disruption in just six years. Ongoing instability in the Middle East is affecting oil and gas supply chains. The International Energy Agency warns recovery could take months.
That delay has real consequences for Australians. Petrol prices have already jumped. Gas prices could follow if the conflict drags on. Luke Menzel, CEO of the Energy Efficiency Council, did not mince words.
“This highlights the economic and financial vulnerabilities we face if we continue to rely on fossil fuels,” he said.
The message is blunt. If Australia stays tied to fossil fuels, households remain exposed to global events beyond their control.
Electrification is the long-term fix
Electrification offers a way out of this cycle. By replacing gas appliances with efficient electric alternatives, households can cut costs and reduce exposure to price shocks.
“While the immediate impact of this crisis has been on petrol prices, a prolonged conflict could result in higher gas prices as well. Accelerating the switch from oil and gas to clean, efficient electricity reduces running costs and insulates Australian households and businesses from future economic shocks,” Menzel said.
This is not just theory. Research from the Institute for Energy Economics and Financial Analysis shows that combining electrification, energy efficiency upgrades, solar, and batteries can cut household energy bills by up to 90 per cent.
That is a staggering figure. It highlights how much waste and inefficiency still exist in Australian homes.
“Electrification is a better way to meet our energy needs in every way. It’s more efficient, cleaner, and almost always reduces running costs. Wherever we can, across buildings, transport, and industries, we should electrify. And the earlier we do so, the faster we can enjoy the benefits.”
Households are moving, but not fast enough
Electricity already plays a growing role in Australian homes. More than half of residential energy demand now comes from electricity. That share has grown steadily, rising by 1.7 per cent annually over the past five years.
It is a positive trend, but it is not enough.
Menzel pointed out that electrification is still lagging behind what is required.
“Around 5 million homes remain connected to reticulated gas networks, with another 2 million using LPG. They all need to make the shift from gas to efficient electric homes by 2050,” he said.
That is a massive task. It requires coordinated action, long-term planning, and sustained investment.
A national retrofit challenge
Australia’s housing stock is ageing, inefficient, and often poorly insulated. Retrofitting these homes is not a small job. It is a national infrastructure challenge.
“We need a large-scale, long-term, national effort to upgrade our existing housing stock over the next 25 years into energy efficient, electrified homes through a range of improvement measures such as insulation and draughtproofing, and upgrades to efficient electric appliances.”
The Energy Efficiency Council’s Efficient Electric Homes Market Acceleration Plan outlines how this could work. It focuses on practical upgrades that deliver immediate benefits.
These include insulation, draught sealing, efficient heating and cooling, heat pump hot water systems, induction cooking, and smart energy management. When combined with rooftop solar and battery storage, homes can dramatically reduce grid reliance.
What governments need to do next
The Council has laid out a clear roadmap for governments. It is not about one policy. It is about a coordinated, national approach.
Establish a national retrofit partnership
The Council is calling for a National Retrofit Partnership. This would coordinate efforts across federal, state, and territory governments. The proposal includes $12 million per year to fund a dedicated task force. Its role would be to deliver incentive programs and unlock low-cost financing for households.
Think of it as treating home upgrades like essential infrastructure, not optional extras.
Revamp electrification incentives
Current incentive programs can be inconsistent and short-lived. This creates stop-start adoption and uncertainty for households and industry. The Council recommends long-term, nationally consistent incentives. These should target upfront costs and support flexible energy use.
Expanding schemes like the Small-scale Renewable Energy Scheme could help drive both electrification and smarter energy demand.
Fast-track home energy ratings
Information matters. Buyers and renters often have little visibility into a home’s energy performance. Mandatory energy ratings at the point of sale or lease would change that. It would allow Australians to compare homes based on efficiency, not just location and price.
Over time, this would drive upgrades across the housing market.
Phase out gas appliances
One of the simplest steps is also one of the most effective. Replace gas appliances with electric alternatives at the end of their life. This avoids unnecessary upfront costs while steadily transitioning homes away from gas.
Updated appliance standards would ensure new electric systems are efficient, smart, and grid-ready.
Lift rental standards nationwide
Renters are often left behind in the energy transition. Minimum standards in Victoria and the ACT are a step forward. The Council wants these standards extended nationwide. This includes requirements for insulation, efficient heating, and electric appliances.
It ensures all Australians benefit, not just homeowners.
The bigger picture for Australia
The Energy Efficiency Council’s 2026 to 2027 Pre-Budget Submission reinforces a key idea. Electrification is not just about emissions. It is about economic resilience.
Efficient electric homes reduce household costs, ease pressure on the grid, and cut reliance on imported fuels. They also create jobs in manufacturing, installation, and services. For a country with abundant renewable resources, the opportunity is obvious.
Australia can either continue reacting to global energy shocks or take control of its energy future. The choice, as the Council makes clear, is electrification.
