Energy affordability Ian McChesney

Fuel Poverty Inability to afford a sufficiency of energy services In the UK a household is in fuel poverty if 10% or more of income is needed for energy NZ households perform poorly when analysed according to the UK definition

What can be done? 1.Use less energy 2.Pay less for energy 3.Gain more income

1. Using less energy Energy efficiency –Insulation and heating…Warm Up NZ/Heat Smart project –Non subsidised actions – hot water, double glazing, wall insulation, lighting, appliances etc. Conserve –‘Voluntary conservation ‘ - turn off when not in use, avoid waste –‘Involuntary conservation’ - can have adverse effects

2. Paying less for energy Cheapest form of energy e.g. electricity vs gas vs wood? Cheapest electricity supplier – Powerswitch Best tariff option

From Consumer

Auckland Sth Canterbury Orion area National Average Dunedin

3. More income Entitlements Income gaining opportunities Narrowing the income divide

Tackling energy unaffordability Political pressure e.g. electricity pricing, rental standards, recognition of energy poverty trap Become well informed –Become an ‘active consumer’ –Take advantage of what is available Assistance is needed: –with capital expenditure –with advice

Comparative electricity trends of the three main sectors ResidentialCommercialIndustrial GWhPriceRevenueGWhPriceRevenueGWhPriceRevenue c/kWh$Mc/kWh$Mc/kWh$M , $1,3117, $71314, $ , $1,3126, $70014, $ , $1,3306, $71115, $ , $1,4996, $70814, $ , $1,6207, $83415, $1, , $1,8187, $88716, $1, , $2,0287, $98516, $1, , $2,1158, $1,13416, $1, , $2,3678, $1,25316, $1,551 Increment 1999 to 20071, c$1,056M1, c$540M2, c$573M Average increase 1999 to 2007 (% pa ) 1.5%6.1%7.7%2.6%4.6%7.3%2.3%3.5%5.9%

Canterbury Home Energy Advice Centre (HEAC) FREE, independent and impartial advice on energy use in the home –Insulation –Heating options –Saving money on power bills –Finding the best energy plan –Choosing the best appliances –Investment decisions –Applying for financial assistance

HEAC contact details Enquiries Online Enquiry Form Freephone