Solstice Energy has disclosed plans to discontinue gas supply to 10 regional Victorian towns by the end of 2026, impacting more than 1,100 customers. The utility company, in its announcement, has stated that the decision is largely driven by increasing operational costs tied to maintaining the CNG (compressed natural gas) networks.
While Solstice Energy has not revealed extensive details about the full extent of the impact, it confirmed that affected customers will need to explore alternative energy solutions. According to SkyNews, the company will assist customers in transitioning to other forms of energy. The shutdown is slated to take effect by the end of 2026.
Affected Towns and Customers
The towns impacted by the gas supply shutdown include Robinvale, Swan Hill, Kerang, Nathalia, Marong, Maldon, Heathcote, Terang, Lakes Entrance, and Orbost. This move will impact over 1,100 households in these areas, leaving them to explore alternatives for heating and cooking.
As a result of these changes with guidance and financial support for customers throughout the process.
Reason for the Shutdown
According to Solstice Energy, the decision comes after constant increases in the cost of supplying these regional CNG networks. The company has absorbed these costs for some time but has stated that continuing to do so is no longer viable for either the business or its customers.
A spokesperson for the company commented, saying:
We are deeply committed to serving our customers’ needs, and this change will ultimately lower our customers’ energy costs.
The spokesperson further explained:
Over the past few years, there have been constant increases in the cost of supplying these regional CNG networks. We have been absorbing costs wherever possible, but this is no longer viable for our customers, or our business.
Transition Support for Customers
Despite the challenges, Solstice Energy has committed to providing assistance to those affected. The company will help fund and coordinate the switch to bottled LPG and will support customers who choose to transition to electric appliances.
We understand the immediate price increases may be difficult to absorb for some customers prior to the change, and we will work closely with any customers experiencing financial difficulties – the spokesperson added.
We will work closely with our customers to ensure a smooth change and, ultimately, we believe they will be better off with lower energy bills.
Long-Term Impact and Company Outlook
Solstice Energy maintains that while the transition may be difficult in the short term, the long-term benefits will be substantial. They believe that customers will ultimately benefit from lower energy bills
We will continue working with our customers to ensure a smooth change – the company concluded,
And we are confident they will be better off in the long run.
With the shutdown expected to be completed by the end of 2026, Solstice Energy assures affected residents that they will not be left without support during this transition.
