The 'Electric Election': energy policies, side by side
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A big part of our New Zealand-made energy plan is helping gas users get off the pipes and onto the electrons. Now Business NZ has added its voice to the debate, suggesting that the $200 million set aside to help the oil and gas industry is instead used as loans to help businesses electrify. The rare call for support came after it released a report showing that the businesses reliant on gas were struggling with increasing prices and their closure would have a massive impact on jobs and the economy.
As director of advocacy Catherine Beard told RNZ: "The reason it's getting expensive is because there's not enough of it. So if we actually free up a bit for those that you know can't move for maybe 10 years, then we think the transition will go a lot better."
We concur.
She said the $200 million the government set aside for co-investment in oil and gas exploration was unlikely to be used and could help fund the loans.
"Businesses faced a cost barrier in switching from gas to other energy sources, so interest-free or concessionary loans from the government could help."
Around one third of businesses that use gas could switch economically now. Another third would need some help, perhaps with something like these loan schemes. And another third has limited options to switch. But the more businesses we can switch, the more of the shrinking gas pie will be left for those that need it.
We should not be buying a lottery ticket and hoping we find more oil and gas. We should instead be helping businesses electrify and then ensuring we create the cheapest possible electricity. That is a massive productivity opportunity for New Zealand and, as other countries with very cheap electricity have found, it could also help reverse the deindustrialisation we're currently seeing and attract more businesses here.
"If I had a political legacy, I wouldn't be happy to have have boosted energy supply and forgotten about the demand side - and there's no point in having this energy in the future if there's no one left to use it."
'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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