
Whanganui residents are about to be hit by increased costs for everything from pool entry to pet cremation as a result of increasing gas prices, while high prices and a shortage means homeowners using gas elsewhere around the country are about to experience the cost increases associated with a 'death spiral'.
Whanganui residents are about to be hit by increased costs for everything from pool entry to pet cremation as a result of increasing gas prices. And they won't be the only ones around the country.
As Whanganui District Council chief executive David Langford said:
... the council’s gas bill had gone up between 80% and 90% - “a $800,000 increase across the board”.
“That is significantly above inflation and any other measure,” he said.
“It has been extraordinary and disproportionate.”
Those stuck with gas machines are destined to suffer the most because of what's known as the 'death spiral', where declining numbers of people on the network have to suck up all the costs of maintaining it. And we've heard some other harrowing stories about gas recently.
Vector has warned of gas shortages for the domestic market and, in a worse case scenario, an inability to supply some suburban customers, while Genesis-owned Frank Energy stopped selling gas late last year.
After a bill increase from its existing gas supplier, a school in Wellington that wanted to shop around for a better deal was told that "Contact are not taking on any new gas clients. There is limited gas available - and gas supplies will be used for existing customers", so they're basically locked in.
A development that installed its own gas network not long ago was told by its supplier soon after that it may eventually need to rip it out.
And those trying to disconnect from the gas network are sometimes being hit with large fees, something that Consumer NZ has been looking into.
We can choose to have an orderly transition off gas and help homes (especially low-income homes) finance upgrades to electric machines, or we can have a chaotic transition off gas where supply is occasionally shut off, networks eventually shut down and homeowners or entire suburbs may be forced to rip out appliances and infrastructure and are burdened with unplanned costs.
When there is news of any price increases, the advice is often to shop around for slightly cheaper petrol, have a shorter shower, or look for a different electricity retailer. But the best advice is to find a way to stop using fossil fuel machines altogether and, if you can, embrace rooftop solar. Electric homes and cars running on a combo of the grid and solar can save around $4,000 per year on average (including upfront costs and the interest on loans).
Gas in homes is dumb. It's already more expensive, it pumps toxins into the air (inside and out), and there's not much of it left. And, as many councils are finding, it's also more expensive when it comes to heating water in pools. So next time you need to upgrade your hot water system, your heating or your cooktop, don't get caught in the spiral.
When you drive an EV, you're not too worried about rising petrol prices. Those with hot water heat pumps aren't too bothered about rising gas prices (or gas running out). And those with solar are less concerned about the rising cost of grid electricity.
Find out more about the electric upgrade options and how much you can save in our electrification guides https://loom.ly/t-BS2NI
As gas supplies decline and prices rise, electrification is the best bet, but it's hard for big businesses without government support. Kirsty Johnston talks to Rainbow Nurseries about how it made the switch with help from a grant, and others who are unsure they will be able to keep getting gas. As one busines owner said: "We never considered the risk to the business of not actually having natural gas," one participant said. "We always expect that the price could fluctuate… But we never anticipated maybe having no gas coming from the pipeline." There are ways for the Government to help. And there is a huge amount of new renewable electricity coming on stream, so there won't be a shortage of electrons.
Read moreDownloadMarc Daalder reports on Vector's declining gas network and how it is responding to falling customer numbers. As he writes: "Gas in Auckland is formally past its peak in the latest forecasts from Vector, the city’s only gas distribution business, with new connections set to fall to zero in three years ... From 2029, there would be no new residential or commercial connections – with new industrial connections projected to have already ceased this year."
Read moreDownload'I'm a bogan and I have no problem with the bastardisation of motor vehicles. You can stick whatever motor you like into whatever else you like.' Antz Davies, you are a true boganic Bright Spark and we salute you because it's the bogans that we need to be convincing! Davies is the main brain behind Watt Rods, a Lower Hutt company that converts old cars to electric. "Any and all vehicles, old or new, four wheels or two, big or small, on road or off, fully customised to your requirements."
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