[Peter Walsh] Walsh says compressed gas network will close in 2026

The Nationals Member for Murray Plains, Peter Walsh, says homes and businesses using the compressed natural gas network across Swan Hill and Kerang will be forced onto either bottled LPG or electricity next year.

Mr Walsh says Solstice Energy, which operates the 10 compressed networks in regional Victoria, will be decommissioning them in 2026 because they are not financially viable.

And he says the switch should mean cheaper energy for all those affected.

"When the service was set up by the Liberals Nationals in 2014 under the Energy for Regions program it dramatically expanded energy access in regional communities," Mr Walsh says.

"But now Solstice reports while it expanded energy access, the model of compressing and trucking gas has led to unsustainable cost increases in the past 11 years, making the program costly and increasingly unviable - for the company and its customers," he says.

"In response, Solstice will switch all customers to a cheaper energy supply - which will be either bottled LPG or electricity. If customers choose gas, Solstice will fully fund gas appliance modifications, and if they choose electricity, it will offer a customer payment - which I believe will be at least $1000 - towards new electrical appliances."

Solstice chief executive Phaedra Deckart has promised her company will contact every customer directly about the coming changes and will also offer support to vulnerable households.

Ms Deckart says Solstice had been absorbing rising costs for the past two years and had decided not to pass them on to its customers.

However, she says the latest ongoing increases will see a rise in tariffs from August 18.

"We know this may not be easy for customers, and we can help with that," Ms Deckart says.