The risk of shortfalls and price spikes is most acute in Victoria, Australia’s largest gas user, where more than 2 million households and businesses still use the fuel for heating, cooking or hot water.

As more consumers switch to electric appliances, authorities including the competition watchdog and the Australian Energy Market Operator have issued repeated warnings that the shift is not happening fast enough to ease the worsening threat of winter supply shortages in Victoria and NSW.

D’Ambrosio said on Thursday gas would play a role in the state’s transition to cleaner sources of energy, “but supply is dwindling and prices are going up”.

“That’s why we are securing new supply and helping households and businesses switch to electric appliances, slashing their energy bills and reducing demand,” she said.

The government’s preferred option would reduce Victoria’s gas consumption by nearly 70 per cent by 2045.

Bill savings for households making the switch from gas to more efficient electric alternatives, such as heat pumps and reverse-cycle air-conditioners, could also be significant and amount to hundreds of dollars a year, the government adds.

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If paired with existing rooftop solar, the savings of going electric would be even greater, of up to $2000 a year.

For customers making the switch, government rebates pay about $420 to replace a gas hot-water heater with a heat pump, $900 to replace a non-ducted gas heater with a non-ducted reverse cycle air-conditioner and $3600 to replace a ducted gas heater with a ducted reverse-cycle air-conditioner.

Friday’s release of the government’s latest electrification proposals will add to an escalating backlash from the oil and gas industry, which has argued that speeding up the shift away from gas could deter gas producers from investing in exploring and developing much-needed new local supplies of the fuel, and cause them to write off investments in the gas network faster, leading to higher bills.

Business groups have also flagged concerns, with Australian Industry Group’s Victorian head Tim Piper telling The Age on Wednesday that residents going electric would put cost pressures on the private sector by sharing gas distribution charges among fewer users.

The government documents also acknowledge that those remaining on gas are likely to face “increasing gas tariffs” because of this.

Earlier this week, the government confirmed it would use its expedited planning processes to fast-track gas extraction, storage, transmission and import projects to ensure a reliable supply for businesses.

Other options outlined in the Victorian regulatory statement on building electrification include requiring existing gas stoves to be replaced with electric ones, although the Allan government has confirmed it had ruled out changes to existing household stoves and any restrictions on the use of liquefied petroleum gas (LPG) in new or existing homes.

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