NSW gov't reverse Labor's electric water heater ban

The New South Wales government has reversed the previous administration's decision that all electric hot water systems need to be replaced.

At the end of 2010, the then Labor government signed on to the federal scheme of banning the installation of these type of heaters in all new homes - part two of the plan to remove them from all current homes was to begin this year.

State energy minister Chris Hartcher said that he and the government are determined to reduce costs for low income earners, as much as possible - given they are already paying higher electricity prices as a result of federal schemes.

He commented: "It is unreasonable for Labor to expect households to bear the costs of expensive green programs and be slugged with the bill when being forced to replace existing hot water units with new systems."

He continued by saying that governments shouldn't be regulating how consumers power their homes.

He went on to say that around two-thirds of New South Wales households aren't able to access heated water through gas and as a result, under the Labor plan, they'd have to spend thousands of dollars on alternatives like solar.