John and Janelle Maynard, the owners of Broken Willow restaurant, say they will have to temporarily close when they begin to electrify sooner than they’d planned.
Photo by
Owen Sinclair
A community in the Goulburn Valley is in shock after a major supplier announced it would be phasing out its gas supply.
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Citing rising costs, Solstice Energy has announced it will phase out its supply of compressed natural gas to 10 Victorian towns, including Nathalia, by the end of 2026.
Owners of restaurant Broken Willow Janelle and John Maynard were left wondering about the future when they received the news.
After years of delays and setbacks caused by COVID-19, the couple were finally able to open their restaurant this time last year.
The restaurant’s water, heating and cooking equipment, installed last year, all run on compressed natural gas.
“The installation of the natural gas itself was $40,000: for the gas lines, installation of the equipment; we had to put new gas lines to all the hot water services ... and plumbing in general,” Mrs Maynard said.
“It will probably be at least another $20,000 worth of equipment that I’ll have to replace.”
Now forced to make the switch to either bottled LPG or electrify their cooking, heating and water sooner than they’d planned, the Maynards’ dream faces an uncertain future.
“I’ve just wasted $40,000 on getting it to gas,” Mrs Maynard said.
“We’ve only been open for a year, so for us to get a loan won’t happen.
“We did all of this off our mortgage. Everything was paid for with excess in our mortgage.”
Solstice Energy says it services 142 customers in Nathalia, two of which are commercial.
“It’s all brand new equipment. We’ve only had it for a year. The government has incentives to swap to electricity, but because it’s all brand new, we won’t get any of that because it’s got to be over a certain age,” Mrs Maynard said.
A Solstice Energy spokesperson said the company wanted to find a better option for its customers.
“Rather than continuing to raise prices in the future, we are instead supporting our customers’ switch to bottled LPG or electricity, and then closing the CNG networks by the end of 2026,” the spokesperson said.
But even if they took the less expensive option of bottled LPG, the Maynards face another problem.
“We’re on a very small block of land,” Mrs Maynard said.
“We don’t have the land to put gas bottles far enough away from the buildings.”
The town’s supply of compressed natural gas at the facility on Railway St.
Photo by
Owen Sinclair
Left in the dark
Local resident Adrienne Van Luenen woke up on Tuesday morning to the unwelcome announcement.
In the home she and her husband built in 2017, the space heater and kitchen stove are connected to compressed natural gas.
She only found out about the phase-out when this masthead contacted her.
“I just feel like it’s yet another situation where the smaller communities are being left behind,” she said.
“We’ve had to fight to get our roads fixed, to get our toilet block, and now we’re fighting to keep our gas connected.
“You just have to wonder where it’s all going to end.”
Transitioning towards bottled LPG and electric
In a statement, a Solstice Energy spokesperson said it would be working closely with its customers to ensure a smooth change.
“Ultimately, we believe they will be better off with lower energy bills,” the spokesperson said.
“Solstice Energy is starting a supported and planned process of switching customers to bottled LPG ahead of a closure of the 10 small compressed natural gas networks in regional Victoria next year, which currently service about 1100 customers across 10 regional towns.
“These CNG networks are completely different to other gas networks as they rely on gas being compressed and then trucked across the state to the town.
“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.
“Our customers can continue to use their existing gas heaters and cooktops, and Solstice Energy will help fund and co-ordinate the switch to bottled LPG. If customers choose to move to electric appliances, we can assist in some of these costs.
“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.”
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