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How to keep your power bill down this winter
How to keep your power bill down this winter

RNZ News

time04-07-2025

  • Business
  • RNZ News

How to keep your power bill down this winter

20% of New Zealanders are struggling to pay their power bills with 11% cutting back on heating their homes, according to Consumer New Zealand's latest energy survey. Stats NZ figures show the price of electricty has gone up almost 9% in 12 months. Some people have told Checkpoint they are in bed by five to save on heating costs, others are taking extreme measures like turning off their hot water cylinder or bathing in cold water. Consumer's Manager of Powerswitch, Paul Fuge spoke to Lisa Owen about how to keep your power bill down this winter. To embed this content on your own webpage, cut and paste the following: See terms of use.

The double-whammy bill natural gas users have to pay
The double-whammy bill natural gas users have to pay

Newsroom

time27-06-2025

  • Business
  • Newsroom

The double-whammy bill natural gas users have to pay

A controversial $200-million fund for investment in local gas exploration aims to tackle ever-dwindling supplies, but it won't be soon enough for thousands of households trapped with gas connections they don't want, a consumer expert says. The four-year contingency fund to subsidise new fossil fuel fields was announced by Resources Minister Shane Jones at last month's Budget. Just weeks later, the Ministry of Business, Innovation and Employment revealed that our natural gas supply is running out faster than previously thought, with latest data showing reserves have fallen 27 percent from last year. But any new developments will take years, and gas households already face surging costs, says Paul Fuge, manager of Consumer New Zealand's Powerswitch. Residential consumers make up only 4 percent of the country's total gas use and Fuge says it won't be running out in the near future. But that is no consolation for gas customers who are being hit in the pocket twice. 'It costs more to have gas than electricity so an electricity-only house is much cheaper to run than a gas-electricity house because you can substitute all your gas appliances for electric appliances … but you can't run a TV on gas or your lights on gas,' says Fuge. That means gas customers have to have an electricity connection, which means double the costs of the infrastructure – gas pipes and electricity lines – needed to deliver the energy to people's homes. Gas customers are also locked out of cheaper electricity plans because most gas suppliers also demand that customers take their electricity. The companies that provide cheap electricity don't provide gas, Fuge says. Add to that the phasing out of low electricity charges for low users, which was a benefit for gas customers. 'What that means is people's electricity connections for the low users are getting more expensive every year over five years and that disadvantages gas customers,' he says. Customers who are renters are stuck with gas, as are people on low incomes because they can't afford to switch, Fuge says. He explains to The Detail why he thinks thousands of new households have connected to gas in recent years, despite rising prices. 'I wonder if it's when people are building new houses, developers may be putting in gas for various reasons.' The Ministry of Business, Innovation and Employment does not have specific figures for new connections but based on rising residential use, Fuge calculates that the number of household connections has increased by around 18,000 since 2019, to 290,000. Residential customers make up the smallest proportion of gas use. According to industry group GasNZ more than half a million New Zealand homes and businesses rely on gas and Liquified Petroleum Gas (LPG). There are 300 large industrial gas customers, from methanol exporter Methanex to dairy plants and wood processors. Newsroom senior political reporter Marc Daalder says the large industrial users are more imperilled by the declining gas supply, as well as the electricity generators that rely on gas. He says the coalition's plans to repeal a ban on new oil and gas exploration will not solve our dwindling gas supplies any time soon. 'The fastest we've had from a conversion from finding that gas to producing that gas is 10 years and it's hard to say in 2035 we know exactly what our gas needs are going to look like. 'The reality is they're probably going to be a lot lower because we're going to be electrifying everything and some of the industries that we've got that rely on gas are going to be electrifying or closing down.' The other option is finding more gas in the existing fields which has been going on consistently and continually for many years, including since the exploration ban was put into place. 'About a billion dollars has been spent trying to find extra gas in those existing fields and there have been a few minor successes but nothing major.' However, two fields are showing potential new gas finds, which the $200-million government co-investment fund could boost. 'Shane Jones would really like for the Government to be able to completely revitalise the gas industry and send people out looking for brand new gas in brand new places. The reality is we haven't found any gas in a brand new place for two decades or longer,' says Daalder. 'It's not like the Gulf of Mexico where there is all this gas sitting there. The resource probably isn't that strong; $200 million isn't going to suddenly make it commercial to take that big of a gamble.' Check out how to listen to and follow The Detail here. You can also stay up-to-date by liking us on Facebook or following us on Twitter.

The double-whammy bill natural gas users have to pay
The double-whammy bill natural gas users have to pay

RNZ News

time26-06-2025

  • Business
  • RNZ News

The double-whammy bill natural gas users have to pay

Photo: 123RF A controversial $200 million fund for investment in local gas exploration aims to tackle ever-dwindling supplies, but it won't be soon enough for thousands of households trapped with gas connections they don't want, a consumer expert says. The four-year contingency fund to subsidise new fossil fuel fields was announced by the Resources Minister Shane Jones at last month's budget. Just weeks later, the Ministry of Business, Innovation and Employment revealed that our natural gas supply is running out faster than previously thought, with latest data showing reserves have fallen 27 percent from last year. But any new developments will take years, and gas households already face surging costs, says Paul Fuge, manager of Consumer New Zealand's Powerswitch. Residential consumers make up only four percent of the country's total gas use and Fuge says it won't be running out in the near future. But that is no consolation for gas customers who are being hit in the pocket twice. "It costs more to have gas than electricity so an electricity-only house is much cheaper to run than a gas-electricity house because you can substitute all your gas appliances for electric appliances ... but you can't run a TV on gas or your lights on gas," Fuge says. That means gas customers have to have an electricity connection, which means double the costs of the infrastructure - gas pipes and electricity lines - needed to deliver the energy to people's homes. Gas customers are also locked out of cheaper electricity plans because most gas suppliers also demand that customers take their electricity. The companies that provide cheap electricity don't provide gas, Fuge says. Add to that the phasing out of low electricity charges for low users, which was a benefit for gas customers. "What that means is people's electricity connections for the low users are getting more expensive every year over five years and that disadvantages gas customers," he says. Customers who are renters are stuck with gas, as are people on low incomes because they can't afford to switch, Fuge says. He explains to The Detail why he thinks thousands of new households have connected to gas in recent years, despite rising prices. "I wonder if it's when people are building new houses, developers may be putting in gas for various reasons." MBIE does not have specific figures for new connections but based on rising residential use, Fuge calculates that the number of household connections has increased by around 18,000 since 2019, to 290,000. Residential customers make up the smallest proportion of gas use. According to industry group GasNZ more than half a million New Zealand homes and businesses rely on gas and Liquified Petroleum Gas (LPG). There are 300 large industrial gas customers, from methanol exporter Methanex to dairy plants and wood processors. Newsroom senior political reporter Marc Daalder says the large industrial users are more imperilled by the declining gas supply, as well as the electricity generators that rely on gas. He says the coalition's plans to repeal a ban on new oil and gas exploration will not solve our dwindling gas supplies any time soon. "The fastest we've had from a conversion from finding that gas to producing that gas is 10 years and it's hard to say in 2035 we know exactly what our gas needs are going to look like. "The reality is they're probably going to be a lot lower because we're going to be electrifying everything and some of the industries that we've got that rely on gas are going to be electrifying or closing down." The other option is finding more gas in the existing fields which has been going on consistently and continually for many years, including since the exploration ban was put into place. "About a billion dollars has been spent trying to find extra gas in those existing fields and there have been a few minor successes but nothing major." However, two fields are showing potential new gas finds, which the $200 million government co-investment fund could boost. "Shane Jones would really like for the government to be able to completely revitalise the gas industry and send people out looking for brand new gas in brand new places. The reality is we haven't found any gas in a brand new place for two decades or longer," says Daalder. "It's not like the Gulf of Mexico where there is all this gas sitting there. The resource probably isn't that strong; $200 million isn't going to suddenly make it commercial to take that big of a gamble." Check out how to listen to and follow The Detail here . You can also stay up-to-date by liking us on Facebook or following us on Twitter .

Electricity Authority Appoints Daylight To Deliver New Comparison And Switching Service
Electricity Authority Appoints Daylight To Deliver New Comparison And Switching Service

Scoop

time25-06-2025

  • Business
  • Scoop

Electricity Authority Appoints Daylight To Deliver New Comparison And Switching Service

Following a competitive procurement process, the Electricity Authority Te Mana Hiko (the Authority) has appointed innovative technology and creative studio Daylight to develop a new energy comparison and switching service. Tāmaki Makaurau based Daylight is known for its world class behaviour-changing digital products and services. Authority Chief Executive Sarah Gillies says that the time is right to develop a new service that will ultimately empower consumers to take full advantage of a dynamic and competitive energy market. "As our energy system evolves, New Zealanders will have many more choices for how they use, buy and sell electricity," Gillies says. "While this will introduce greater complexity, the potential benefits for consumers and communities are immense. "An engaging and adaptive comparison and switching service will enable consumers to cut through the complexity to get more control over their energy bills. It will also strengthen retail competition and encourage innovation and service delivery." Daylight will deliver the new service by the end of this year and work with the Authority to evolve its capabilities over time, leveraging emerging technologies, improvements in data standardisation and a future consumer-data-right. The Authority and Daylight will also work closely with retailers to ensure new products and services are seamlessly integrated to support consumer choice. "Daylight are well-placed to help us achieve our long-term vision for a centralised service to help New Zealanders with their energy choices," says Gillies. "They bring fresh thinking, a strong track record and impressive technical capability." Daylight CEO Lee Lowndes says: "We're thrilled to partner with the Electricity Authority on such a meaningful project for Aotearoa. Helping Kiwis navigate an increasingly complex energy landscape is exactly the kind of challenge we love." The Authority will continue to support and promote Powerswitch until the new comparison and switching service is launched later this year. The Authority has been funding Powerswitch for several years and values Powerswitch's long-standing contribution to supporting consumer choice. Notes: The Electricity Authority is an independent Crown Entity with the main statutory objective to promote competition in, reliable supply by, and the efficient operation of, the electricity industry for the long-term benefit of consumers. The additional objective of the Authority is to protect the interests of domestic consumers and small business consumers in relation to the supply of electricity to those consumers.

What 'running out' supply means for households still using gas
What 'running out' supply means for households still using gas

RNZ News

time07-06-2025

  • Business
  • RNZ News

What 'running out' supply means for households still using gas

Gas supplies for households probably won't run out. Photo: 123RF Reports that New Zealand's natural gas reserves might be dwindling faster than expected may be unwelcome news to households using it to cook and heat. The Ministry of Business, Innovation and Employment said previous forecasts showed annual gas production falling below 100 petajoules (PJ) by 2029, but revised forecasts indicated that level would be reached by next year . Paul Fuge, general manager at Consumer NZ's Powerswitch, said residential gas use was only about 4 percent of the country's total gas consumption, so gas supplies for households probably would not run out, but he said they would likely become more expensive over time. "This is especially true, if we see a death spiral effect," he said. "As more households disconnect from gas, the cost of maintaining the gas infrastructure is spread across fewer users, pushing prices up further and encouraging even more to leave. "Lower-income households and renters may be left behind on the gas network, facing rising costs, while wealthier households can afford to transit." Consumer's advice was, when household gas appliances reached the end of their life, it made sense to replace them with an electric alternative. Fuge said 46 percent of households used gas of some type and he expected an average increase in gas prices of 10 percent this year. "Retailers cite rising wholesale and network costs as the main drivers of price increases. A significant factor is higher gas network charges - the cost of transporting gas to homes - which typically account for about a third of a household's bill. Starting in 2024, the Commerce Commission approved an annual average increase of 3.8 percent in gas pipeline charges over four years, adding about $48 per year for a typical household. Fuge said Nova and Megatel were the only providers offering gas as a standalone product. Others required people to sign up to a gas-and-electricity package. "As a result, gas customers may find their choices are limited, and they cannot access lower-cost or more innovative electricity plans and suppliers." GasNZ chief executive Jeffrey Clarke said there would be enough gas for household and commercial users for many years. "To put a 100PJ supply into perspective, about 290,000 homes are connected to natural gas in the North Island and they use just 7.3PJ annually." Clarke said there was an estimated 9.5PJ of untapped potential for producing biogas from organic waste in the North Island and 9.1PJ in the South Island. "With sufficient investment to expedite the development of the renewable gas market in New Zealand, there's every expectation that all residential natural gas consumption could be replaced by renewable biogas over this timeframe." Countries like Denmark have replaced about 40 percent of natural gas supply with renewable gas produced from organic waste, with plans to make this 100 percent by 2030, he said. "In total, it's estimated up to 23.5PJ of biogas could be produced annually across New Zealand - enough to supply a good amount for commercial needs as well." He said LPG was also in plentiful supply. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

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