The 'Electric Election': energy policies, side by side
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Talk about going in one door and out the other.More people than ever are struggling to pay their energy bills. There is a system designed to help those in that situation and a total of $562 million was paid in the last financial year through the Winter Energy Payment. There are additional emergency payments on top of this. And this completely ignores the wider health and social costs of 'energy poverty.' Interestingly, a similar amount - $482 million - was paid to the Government in dividends from its shares in the gentailers Meridian, Mercury and Genesis in the last financial year.
Many of us feel good about our ownership of the gentailers and what they provide back to the Government. We're in favour of a more circular economy and electrification offers a great opportunity to embrace that, but this is the kind of circular economy that doesn’t make any sense.
It is a band-aid solution and it is not addressing the root cause of the problem.
According to Statistics NZ, since December 2021, electricity prices have risen by 27 percent. Other estimates suggest prices will increase by around 30% before the end of the decade. And the latest from the Electricity Authority shows 40%, yes 40%, of households are worried they won't be able to pay their power bills in the next year.
If the Government is serious about reducing bills, it should instead be investing some of that money into solar in homes - and particularly low-income homes.
Even just $6-7 million would allow nearly every home to access long-term low interest finance through the Ratepayer Assistance Scheme. Homes with solar could save around $1,000 per year, including loan repayments. And homes with the full suite of electric kit could save around $2,000 per year.
The Government would get its money back and breaking the link with the big energy landlords that keep ratcheting up prices would be much more effective at lowering energy bills than the usual tactic of applying ‘downward pressure’. That hasn’t worked.
The current system is not a good example of ‘smart economic management’, and neither is the similarly circular decision to cancel the $1 billion GIDI fund, which was designed to get gas users onto electricity, and spend “north of $1 billion” to build a new LNG terminal that will keep them hooked on gas and do very little to lower bills.
Real savings begin at home.
'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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