The 'Electric Election': energy policies, side by side
If you've got solar, the best option is to use as much of it as possible to avoid high grid prices, but being paid to export energy is a nice cherry on top. It means many New Zealanders end up getting paid by their power company and shorten the payback period of their systems. Regulatory changes that meant customers would be paid more for exporting at peak times were meant to make batteries more appealing to customers and reduce the need for more investment in expensive poles and wires, but, as Marc Daalder writes in Newsroom, some retailers are not passing on the full value of those exports.
Rewiring CEO Mike Casey said the failure to pass on the full rebates was tantamount to clipping the ticket for no added value.
“We’ve been calling it energy scalping, essentially, which I think is about the best way of describing it."
By not passing on the full rebates, retailers risked being the cause of increasing consumer bills over the coming years through encouraging unnecessary building of poles and wires.
“There is a massive capex bias at the distribution layer to build more poles and wires, which is not necessarily the cheapest pathway forward for the customers of New Zealand. And if you’re not passing on the pricing, you’re not influencing consumer behaviour and if you’re not influencing consumer behaviour, then ultimately poles and wires becomes the default option.”
Further upstream, there appears to be a bit more 'energy scalping' going on.
The Electricity Authority told the lines companies to calculate how much batteries are worth to them for lowering future investment in lines. And then it allowed them to place an invented “adjustment factor” - with very little evidence or hard data required - that meant they could reduce the amount they pay customers.
Many of them reduced the value by 80%. One by 95%. And the average was a devaluation of around 50%. The regulator that is paid to protect energy consumers encouraged energy companies to create a devaluation factor for consumer energy and treat it as less valuable than they know it is.
There has long been a supply side bias that unnecessarily increases consumer bills, but having the regulator actually encourage this bias is quite shocking when they are meant to represent the interests of everyday New Zealanders.
It's good to see the EA mandate a 10kW export limit, but it often feels like one step forward, two steps back.
At a time when we should be making it more appealing for New Zealanders to produce their own energy, the incumbents find a way to protect their interests and the regulators don't fight hard enough to make customers a bigger part of the energy system and, at times, actively discourage actions towards this.
We believe you should be paid fairly for your contribution based on what it’s worth, not treated differently because you are a home or business rather than an energy company.
We could be unlocking mass investment by consumers in the energy system just by having a level playing field on energy, but we are slowing this down by having a bias that ultimately results in higher energy bills.
'Twas the night before Chris-mas, and all through the house, all the voters were stirring, the pundits showing their nous … the election will soon be over, but the energy crisis won't, so we'll be there to pester whoever is in power about the need to run more of the economy on New Zealand-made energy; can Ethiopia's aggressive push for EVs work and how does New Zealand compare in terms of adoption rates?; a two-way charging trial from Genesis shows promise in Auckland, but there's still a way to go before it's mainstream; small electric vehicles are often overlooked when it comes to electrifying transport, but it's hard to miss this weird French one; a solar-powered cafe (and some electric coffee); and we endorse the political vandalism of Keith of All Trades.
Read moreDownloadPoliticians are being urged to adopt stronger electric vehicle incentives ahead of the election. Climate and energy advocacy group Rewiring Aotearoa is arguing that EVs are one of the most effective long-term solutions for rising transport and energy costs. They're promoting an EV Salary Boost proposal, which would allow workers to access EVs through pre-tax salary arrangements – similarly to already existing schemes in the UK and Australia. Policy and Government Relations Spokesperson Ngaio Neumegen told Kerre Woodham that even with the rising cost of power, it's still cheaper to run an EV than a car running on imported fuel.
A proposal that would let New Zealanders lease an electric car using their before-tax pay has not won a commitment from either National or Labour, with the 7 November election days away. Under the EV Salary Boost, put forward by Rewiring Aotearoa and Drive Electric, an employee would lease a new or used EV for three to five years. The payments would come out of their pay before tax, lowering the cost of running the car. The idea is based on Australia’s novated leasing system, though the groups say they are not proposing a direct copy.
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