What makes up your power bill

There are six main parts that make up your standard power bill. Depending on your retailer, these may or may not be separated out on your bill.

Generation.

This is the cost of generating the actual electricity you use. This can vary every half hour in relation to demand and the spot price of the wholesale market.

Transmission and Distribution.

These charges cover the costs to transport power around the national grid and to your property. They’re influenced by a few different things, such as your User Plan and seasonal pricing changes, so this pricing is different for each customer depending where in New Zealand you are.

Metering.

Your electricity meter, which records how much power you’re using is owned by a metering company, and this fee is the rental cost that you pay for using it.

EA Levy.

All power retailers pay this to the Electricity Authority, to cover the costs incurred by the EA to regulate the industry. This is passed on to you in your power bill and may or may not be shown as a separate item on your invoice.

Retailer fee.

To cover operational costs, all power retailers need to charge a fee or a margin.

Taxes.

GST is applied to the invoice total.

Although power retailers all operate differently, most will show daily or fixed costs, as well as variable charges on their power bills. So, what’s the difference?

Daily charges are usually shown as “cents per day” and they are set fees that apply per day and unrelated to how much power you use.

Variable charges, on the other hand, are shown as ‘cents per kWh” and are directly related to the amount of power you’ve used over the invoice period.

When retailers quote rates they usually do so before GST is added and before any discount (ie for prompt payment) is applied.

When you complete a comparison on SwitchMe we ensure the GST is added and any discounts issued so you are comparing apples to apples. Are you on the best option for you at the moment? www.switchme.co.nz

Plan to stop Winbacks

The Electricity Authority is consulting on a proposal to ban retailer initiated saves and win-backs for 180 days after a customer switches retailers.

“We have a competitive electricity industry, but this will do more to encourage innovation and increase competitive pressure. This proposal puts the pressure on retailers to fight for their customers and offer them something new and different,” says James Stevenson-Wallace, Chief Executive at the Authority.

The concern is the current retailer does not offer the best rates or discounts to the customer until they start the process of switching to another retailer. They wait until they threaten to leave before they offer better rates to save or winback the customer.

The hope is by banning the retailer from trying to save the customer for a period of 180 days, the retailer would be more inclined to offer the better rates for the customer up front before they start to switch away.

The proposal does not place any restrictions on consumers wanting to shop around, they are still free to change suppliers to suit their needs. The ban on win-backs would not stop customers from returning to their original supplier of their own accord, but would prevent their original retailer from targeting marketing directly towards them.

The Government also supported the Electricity Price Review’s recommendation to impose a ban or moratorium on win backs followed by a full evaluation of the impacts on consumers.

The Authority is keen to hear from all interested parties and encourages submissions. The Saves and Win-backs Code Amendment: Consultation Paper 2019 is on the Authority’s website.

Submissions close at 5pm on Tuesday 3 December. The Authority’s Board will deliver its final decision by early 2020.

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Electricity Pricing Reforms

The government has announced it is backing 20 changes to the electricity market which is the biggest change in the industry for 20 years.

Most people who use a lot of electricity, don't shop around for power, or who sometimes pay their bills late, should see lower power prices. But those who use gas, or who have their own home-solar systems, could end up paying more as plans that reward low electricity usage are phased out.

The changes, which include new regulations designed to bolster competition, stem the Electricity Price Review that the Government ordered last year.

No More Winbacks

One of the biggest changes will temporarily ban electricity companies from offering discounts to win back customers who have given them notice that they intend to switch suppliers. This is to counter the concerns that the existing retailer can wait for customers to threaten to jump ship before offering them a competitive price.

Removing Prompt Payment Discounts

Electricity companies will be also encouraged to stop offering Prompt Payment Discounts. Energy Minister Megan Woods said the "prompt payment discounts" really amounted to "hidden late payment penalties" for those who didn't get them.

Removing Low User Plans

Also, in what appears to be the most controversial change, the Government plans to phase out the requirement for electricity companies to sell plans that offer a low fixed daily charge and a higher variable charge for power used.

About 60 per cent of residential consumers were on a low-user tariffs, but the Government has ordered officials to develop proposals to phase them out. Households that consume less than about 8000 kilowatt-hours of electricity a year can expect to pay more than they current do, depending on how little power they use.

In its final report, the Electricity Price Review acknowledged this could discourage people from installing solar systems or insulating or double-glazing their homes. But it said the low-user plans "unintentionally shift costs to households with low incomes and high electricity consumption".

Wholesale Market Changes

Woods said new rules would force large power companies to sell electricity to independent retailers through the wholesale market "at affordable rates".

It is understood the Government is backing a recommendation that would force the generators to buy and sell electricity in the wholesale market at an agreed spread.

That "market-marketing" requirement emerged as a main issue within the industry when the Electricity Price Review published an earlier paper in February.

"Right now, our electricity system is dominated by a small number of big 'gentailers' – companies that generate and sell electricity," Woods said. "It can be too hard for small and independent retailers to compete and survive, meaning fewer choices for consumers and less innovation in the market."

The Electricity Price Review recommended against going further by forcing the separation of electricity generators from retailers.

Woods said the reforms would "level the playing field" for consumers, and the Government would check "in our second term" that the expected savings were passed on to them.

Best Option Now

The Government has a variety of measure to tackle "energy hardship" and improve the information available to consumers about switching retailers.

Of course instead of waiting for the changes, you can use our free, online comparison calculator right now to see if you’re currently getting the best rate on your energy costs. Contact us today for more details!

Streamlined Energy Billing Data Coming to Kiwi Households

Upcoming planned changes to New Zealand households’ and firms’ electricity billing will result in quicker, more effective access to billing details.

The planned series of changes include outlining the information required when a customer’s agent requests retailer data and banning retailers from requesting supplementary information or specifying the form those requests must utilize.

A new, automated tool is also planned to communicate the permissions of a customer’s agent to their retailer.

Previous Industry Rule Changes in 2016 were Ineffective

The new changes come as a result of industry rule changes in 2016 which did not result in desired streamlined access to billing data.

Extreme friction was produced between agents and retailers due to the insufficient amount of guidance on what establishes a proper information request. Individual retailers and agents each created their own approach to the industry’s request; some retailers developed implementations that require a lot of customer and agent action whereas others chose to deal with authorisations on an ad-hoc basis.

As a result, processes and effort were often duplicated and unnecessary increases in transaction costs were produced. Industry innovation and greater consumer participation were also negatively affected.

Positive Results Expected

More streamlined access to electricity billing data is expected to lead to a range of benefits including better consumer access to energy services. Decisions about new technologies including solar or home energy management systems will be easier to make due to access to historical usage data.

Customers will be able to make better-informed decisions about their energy usage, leading to cost savings and better energy efficiency.

Vulnerable customers will be provided with an easier option to share their energy data and obtain advice from social agencies and not-for-profits.

Better Access to New Zealand’s Competitive Retail Electricity Markets

New Zealand has one of the most active and competitive retail electricity markets worldwide. However, the Electricity Authority believes that many consumers aren’t benefiting from the cheaper prices and innovative services some retailers offer.

Annually, approximately 20 percent of Kiwis change suppliers. Throughout the 16 years that data has been recorded, it’s estimated that more than a fifth of households have never switched energy suppliers.

Are you one of them? With Switchme’s easy, online energy comparison calculator, you can find out right away if you’re getting the best deal on your energy costs.

All it takes is five minutes of your time! Check out our site for more details about how you can be saving on your energy costs starting today!

Renewable Energy Delivered Majority of Power in 2018

Even though 2018 resulted in the biggest annual coal burn within the last three years, renewable energy still delivered almost 84 percent of New Zealand’s electricity.

Recently released data from the Ministry of Business, Innovation and Employment (MBIE) showed that the share of renewables increased to 83.9 percent in 2018, up from 81.9 percent the year prior. The highest year since 1981 was 2016, which resulted in 84.9 percent.

Extra Hydro Storage Contributed to Fossil Fuel Generation Decrease

Last year also saw a 19 percent decrease in gas-fired generation due to two extended outages at the Pohokura gas field. The above-average hydro storage for most of the year helped to offset this shortage.

Gas-fired plants operated by Contact Energy, Genesis Energy and Nova Energy contributed only 5, 374 gigawatt-hours of generation in 2018 – the lowest since 1995.

The MBIE stated that the 84.5 percent renewables achieved in the December quarter was despite wind generation being the lowest for that period for almost ten years.

Although coal-fired generation had the highest quarterly volume since March 2015, it only contributed to 6.3 percent of the generation mix. Both hydro and geothermal generation increased.

Renewable Energy Proves its Resilience in 2018

The recently released data proves that the sector is able to withstand drastic variances in hydrology. When there is difficulty with wind and hydro availability, the sector relies on gas to cover the variations.

Coal has approximately double the emissions of natural gas. However, the data doesn’t show the increased emissions that would have resulted from using coal to counterbalance reduced gas-fired generation.

On Track to Meet Government’s Power Generation Goals

New Zealand has been working hard to achieve the government’s goal of 100 percent power generation by 2035 in a year of average hydrology.

A recent presentation by the Interim Climate Change Committee described how the electricity system is predicted to be 93 percent renewable by 2035. To meet the government’s goal, new technologies are necessary to counter dry-year risks.

In 2018, hydro accounted for almost 61 percent, and geothermal production was one percent lower at 7,377 GWh. Solar contributed to almost 30 percent more at 97 GWh. Gas-fired plants accounted for 12 percent of 2018’s total generation.

When’s the last time you checked to see if you were getting the best residential power price? Do so now (and know within a couple of minutes) by checking out our free, online comparison calculator!

Electricity Price Review Recommendations

Almost one year later, the independent electricity review endorsed by the Labour, NZ First and Green parties has issued their recommendations about New Zealand’s electricity industry.

The review panel, comprised of both consumer and industry representatives, was asked to evaluate whether the current electricity market is delivering fair pricing to consumers and whether the existing structure will be able to handle new technologies.

The almost 40-page long document supports eliminating low-fixed charges and prompt payment discounts in addition to improving the disclosure of the retail/power generation company profit split.

The Electricity Review panel’s recently released review outlines 41 options from seven themes:

• Strengthening the consumer voice
• Reducing energy hardship
• Increasing retail competition
• Reinforcing wholesale market competition
• Improving transmission and distribution
• Improving the regulatory system
• Preparing for a low-carbon future

Panel’s Ideas to Improve New Zealand’s Electricity Sector

The panel’s interim report issued in September resulted in no evidence that electricity retailers and network companies were making excessive profits.

However, the report did cite concern regarding the development of a “two-tier” retail market which hurts citizens who do not have the means or ability to find the best energy price.

Energy Hardship Identified as a Matter of Priority

The panel endorses a cross-party working group dedicated to energy hardship that would clearly define energy hardship and its drivers.

In addition, the group would establish community-level support services that would offer advice on budgeting, energy efficiency and switching so that electricity prices are more affordable for all.

The group suggests banning prompt payment discounts which they believe also negatively affect low-income consumers. A cap would be added at the retailer’s actual cost or saving for late-payment fees and discounts for bundled services and direct debits.

Win-backs are also suggested to be banned even though both the Electricity Authority and many retailers believe that individual customers have benefited from the resulting lower prices. The panel believes that this practice could also be contributing to the “two-tier” nature of the market.

The panel wants to make mandatory voluntary market-making services that major generators provide for the ASX futures market. This would help existing arrangements become more stable.

In addition, the panel wants to see better disclosure of information that could affect wholesale prices and more enforcement by the Electricity Authority regarding existing disclosure rules. The panel suggests that the Electricity Authority is provided with the ability to monitor wholesale prices against actual costs in the sector.

A government policy statement on distribution pricing is recommended to help reduce the impact on households.

The Electricity Review’s Unsupported Recommendations

It does not support caps on retail prices, separating generation and retailing activities, the forced amalgamation of distribution companies or a regulated decrease in the asset values of the network companies and national grid operator Transpower.

The full document can be viewed online by going here.

Switchme can help you achieve cost savings on your energy bill starting now! Check out our convenient, simple switching process by visiting our website.

Low Submission Results for Government’s Electricity Industry Review

Only 108 survey submissions on New Zealand’s electricity industry were recently received by the Government.

The low number of responses indicates one of two extremes: either Kiwis are confident with their country’s electricity pricing system, or the lack of industry understanding led to a low number of surveys being completed.

Graeme Peters, Chief Executive of the Electricity Networks Association, read each submission received. Although he notes that several improvements could be implemented, he is hopeful that the low number of responses means that consumers view the industry favorably.

Jessica Wilson, head of Consumer Research, believes differently. She thinks that the low level of responses shows that the issues are complicated for the average electricity consumer.

She stated that the lack of responses does not show that consumers are content with their power bills or with how the pricing is calculated.

The Demographics of Survey Respondents

The majority of the 108 submissions were by industry participants or large companies.

Private submitter's may have found the enormity of the survey along with its format difficult to navigate – thus giving up on the survey before truly even beginning.

Other Recent Surveys Showed Kiwis’ Concern with Electricity Pricing

Other surveys recently conducted did show that Kiwis are concerned with their power bills.

The annual cost of living survey showed that almost 70 percent of consumers were concerned with their electricity costs. Plus, almost 20 percent of Kiwis reported recent financial difficulty paying for their power.

Survey results also showed that the majority of Kiwis were trying to reduce their energy costs.

Final Report Due in Coming Months

The review on the country’s electricity industry is being completed by a panel under the Ministry of Business, Innovation and Employment.

The final report is expected in May 2019.

You don’t need to wait until the Electricity Industry Review is over to potentially save on your energy costs! Use Switchme’s free, online energy comparison today to see if you could be saving on your monthly energy bill.

Contact us today for more information about our energy switching services!

Volatile Spot Market Causing Retailers to Leave Market

The increase in power prices have hurt more than Kiwis: they’re causing certain electricity retailers to leave the industry.

Three independent electricity retailers are predicted to close in the near future due to the recent exceptional increase in wholesale electricity prices. The situation has seen energy prices spike from less than ten cents per kilowatt hour to over 100 cents. October 2018 saw the highest October whole price average ever recorded at $300 per MWh.

Wondering why there’s been a price increase and what’s being done about it? We’ve got the answers for you about the current energy price spike.

Retailers Lacking Enough “Hedging” Are Suffering the Most

Wholesale prices have more than quintupled recently. Since lake levels persist to be low and gas production has been reduced, wholesale prices are expected to remain high.

Since smaller retailers have limited amounts of power that have been locked in at a guaranteed price, they are the ones most likely to suffer from the price increase.

Power Direct Encouraging Current Customer Base to Switch Retailers

Nelson-based retailer Power Direct is no longer accepting new customers and is urging its current customer base to switch to another retailer.

Otago power retailer Payless Energy also blames market volatility for its departure from the energy market.

Other retailers are making changes, too. Flick Electric is now offering its 24,000 customers a “fixie” contract with a six-month term. One-fifth of their customer base opted for the fixed contract within the first week it was offered.

Manipulation by the Big Five Power Gentailers?

Both the Electricity Authority and the Government have been asked by certain retailers to investigate the current price spike.

Four independent power retailers are concerned that independent competition is being threatened. As a result, householders are losing out as wholesale prices continue to rise.

Complaints from independent retailers Pulse Energy, Electric Kiwi, Vocus Communications and Flick Electric have included concerns that gentailers aren’t transparent or justified.

The price increase is similar to 2008 when there was a genuine shortage of electricity due to the unprecedented dry winter.

Although the Electricity Authority is monitoring the situation, no intervention is currently suggested.

Switchme Ensures You’re Not Paying More than Necessary on Your Energy Bill

With the current energy price spike, it’s more important than ever to ensure you’re getting the best rate on your energy costs!

Use Switchme’s free, online comparison calculator to get the best energy rates. Contact us today for more details!

5 Ways to Survive a Power Outage

Whether it’s the result of stormy weather, an accident or maintenance work, a power outage is always an inconvenience.

Other than sitting patiently in the dark waiting for it your power to come back on, do you know what to do in a power outage? If not, here are five ways to survive the next time you have no power!

• Stay Calm

Rest assured knowing that most power outages are shortlived. In fact, they’re normally over before you even have time to find your flashlights and candles!

Do a quick investigation to see what may have caused the black-out. If you notice that your neighbours are also out of power, then check with your power company for an update.

Once you find out how long the power may be out for, ensure you have enough supplies on hand to get you through.

• Stay Warm

Power outages are a nuisance all year round – but even more so in the winter when you have to keep warm.

Cover your windows with blankets to block any drafts, wear extra layers of clothing and if you’ve got a fireplace, make yourself a fire. When using candles, ensure you use proper candle holders and remain in the same room as the lit candles.

Plus, in very cold areas when the outage will be for a while, turn your faucets on to a drip to prevent your pipes from freezing.

• Stay Fed and Hydrated

Prior to a storm hitting, make sure you’re well stocked on food and water.

Keep cans of soup (and a non-electric can opener!) handy. If you don’t have a gas stove, try to purchase foods that can be consumed without any cooking needed. Since most food remains frozen for up to 36 hours, don’t open your fridge or freezer unless absolutely necessary.

Depending on how long your power will be out for, you will need enough water for drinking, washing dishes, bathing and toilets. Use your bathtub as a holding tank and fill it up with water before the storm hits!

• Stay Busy

Try not to watch the clock while you simply wait for the power to come back on!

Instead, have some old-fashioned fun playing board games and cards, reading, listening to music or simply conversing with family and friends.

• Stay Prepared

Like most things in life, proper preparation is key to surviving a power outage.

Keep your wood burning fireplace and chimney properly maintained, install a non-electric stove or heater and consider purchasing an emergency generator. Protect electronics with a power bar and install carbon monoxide detectors that have a battery-powered back-up.

At the very least, stock up on blankets, flashlights and candles!

Hopefully in no time at all, your power will be back on!

We understand how much you’ve probably been suffering from the recent heat wave through New Zealand!

If you’re anything like us, you’ve been trying to stay in air-conditioned buildings, are minimizing outdoor activity and are dressing as comfortably as possible – while watching the skies for a rainfall to eventually break the heatwave!

Our country’s hydro lakes are a whole other matter, though. They have no way of escaping the effects of these scorching hot temperatures, which have resulted in plummeting lake levels and rising energy costs.

Numerous Contributing Factors for Low Lake Levels

The summer’s warm temperatures are causing a domino of effects regarding the country’s hydro lake levels.

For one, the snowy hills in the Mackenzie country have been melted away because of the sun. Plus, there hasn’t been a decent rainfall in the last few weeks. Both Lake Tekapo and Lake Pukaki depend on winter snow storage and westerly rains in the mountains to remain topped up.

Power Companies Urge Consumers Not To Be Concerned

Although power authorities are closely monitoring the South Island’s falling hydro lake levels, they say they aren’t cause for consumers to be worried yet.

On average, summer is when NZ experiences a lot of rain in the South Island – and there is still a lot of summer left.

When that happens, lake levels will go back up and generators that depend on rain for the coming winter will be ready.

Other Sources of Generation Being Used in Meantime

With almost 65 percent of New Zealand’s power generation relying on hydro electricity, the energy industry has been implementing some hydro lake level saving measures.

Among other energy sources, coal and gas are being used to help conserve the falling lake levels.

Ensure You’ve Got the Best Rate on Your Energy Bill

With energy spot rates at a high, there’s no time better than the present to ensure you’re getting the best deal on your energy rates. And with Switchme’s online energy comparison calculator, there’s really no easier way!

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All-Electric Car Sharing Service Launched in Christchurch

As an international leader in eco-friendliness, it was only a matter of time before New Zealand started an all-electric car sharing service.

As of February 15, that day has officially arrived!

First of Its Kind in New Zealand

The only city in New Zealand to offer a full fleet of electric cars in their car sharing service, Christchurch is also one of the few cities in the world.

Toronto, Paris, Singapore and San Diego are other cities around the globe looking to reduce emissions and congestion by launching a similar service.

Created by The Christchurch City Council

Brainstormed, researched and launched by the Christchurch City Council, this new car sharing service is being managed by Yoogo Share.

Launched to help the Council reach its goal of becoming carbon neutral by 2030, the fully battery powered electric car sharing service will also deliver improved environmental and health outcomes.

Various Stages Will Launch Certain Hubs Around the City

In stage one of launching the car share service to the public, Hyundai Ioniq and BMWi3 were made available in in the Christchurch Art Gallery Te Puna o Waiwhetu car park, the West End car park and at Christchurch International Airport.

In April, ten or more hubs will be added to the service, which will then be up to 100 battery electric vehicles. This second stage of the program’s launch will be funded through the Energy Efficiency and Conservation Authority’s Low Emission Vehicles contestable fund.

Hubs to be added in stage two will be at The Crossing car park, the Ara Institute, Canterbury University, Papanui and Fendalton libraries and the Lyttelton Community Centre.

Numerous Benefits of Using Electric Vehicles

Having an all-electric car sharing service offers numerous benefits for Kiwis.

Besides having a lack of tail pipe emissions that will reduce the city’s carbon dioxide emissions and improve air quality, this type of service will reduce traffic congestion and provide commuters with more transportation options.

Plus, it will play a huge role in reaching the government’s goal of becoming carbon neutral by 2050.

Switchme Can Save You Money

Besides using the new all-electric car sharing service, are you looking for other ways to save on your energy costs? If so, check out Switchme’s free energy comparison calculator!

In only a matter of moments, easily compare what you’re currently paying for energy costs to other options. We’ll even help you complete an easy online switch application!

Contact us today to receive our free, independent advice about the energy switching process.

Hard work and dedication over the past 13 years finally paid off for a father-son farming team with the creation of a machine that uses methane to produce power.

Southland farmers John and Quinton Scandrett have worked tirelessly to create a solution for powering their cow shed and for heating water for the farm.

Keeps Harmful Methane Gas out of the Atmosphere

In the end, a machine was created that extracts greenhouse gases from effluent, and changes them into carbon dioxide at his Isla Bank property, Glenarlea Farm.

An Environmental Game Changer for Farmers

Using the farm’s effluent pond which contains wash-out from the milking shed, a black liner traps methane gas, which is then fed through a generator to create electricity. In addition, hot water (at 91degC) is produced which is used for cleaning the farm.

The more animal manure produced, the more energy can be created. A herd of 400 cows is estimated to produce enough energy to produce hot water only, but 800-850 cows would be able to create a full electricity generating set-up. In addition, greenhouse gas emissions are estimated to be reduced by about 30% using the system.

Challenges with Effluent Ponds

One of the main challenges with creating electricity using this process is to keep effluent ponds well insulated. Cooler temperatures slow the natural bacteria, which produces the methane. The pond at Glenarlea Farm had been built with this in mind, but existing effluent ponds could be retrofitted with the technology.

However, since Southland typically has cooler climate, successful use of this technology there means that it can work basically anywhere throughout New Zealand.

New Technology Means Cost Savings for Farmers

Other Southland farmers can anticipate the technology to be available for their farms next year. Although installation costs will vary depending on the effluent pond system currently in place, the electricity savings from the recovery will eventually pay off.

The Energy Efficiency and Conservation Authority (EECA) and Venture Southland are currently monitoring the project to see what the actual economic payback would be.

Lower Your Energy Costs with Switchme!

As New Zealand’s largest non-government funded energy switching site, Switchme has helped thousands of New Zealand business and residential customers find a better energy deal. Using our free, online comparison calculator, see for yourself if another electricity provider has a cheaper rate. Contact Swtichme today for more details

If you’re an electric vehicle owner in South Auckland, it’s easy to keep your vehicle powered with help from the area’s ten charging stations.

Vector, an electricity supplier, has rapid chargers at Auckland Airport Shopping Centre, the Z Energy Skyway fuel station on George Bolt Memorial Drive, and on Walters Road, Takanini. They’ve also supplied Manukau, Wiri, M?ngere, and East Tamaki with standard chargers.

The chargers near Auckland Airport are proving very popular, with an average use of 15.5 times each day.

Install Vector’s EV Charging App for Helpful Information

Vector's EV Charging App is a useful tool for owners of electric cars. Not only does it provide information about charging stations that are currently available for use, but users can also see charger information.

The app also features a handy scheduler that lets electric car owners book their vehicle in to use the charger.

Forward Thinking Technology Available from Vector

Vector has technology that’s available so customers can ensure their electric vehicle is charged at a time when demand is low. Customers can plug in their electric vehicle, and program it to be ready to go for whenever it’s needed. The technology knows when the demand is low on the network, so can charge your EV at a suitable time.

Another technology that Vector currently has available enables electric vehicle owners to charge up their car, as well as take power back out of it for their home or business. This technology has huge potential – an electric Nissan Leaf can provide ten hours’ worth of power for an average household!

Government Focussed on Increasing EV’s in New Zealand

In May of 2016, the New Zealand government launched its “Electric Vehicles Programme.” The program’s main goal is to see approximately 64,000 electric vehicles on the road by 2021.

To help reach this goal, measures like reducing some of the barriers and investigating ways to further support the uptake of electric vehicles were implemented.

New Zealand’s Well Suited to Electric Vehicles

New Zealand workers have a low average commute, which can be easily handled by an electric vehicle’s battery. Overnight home charging is convenient because 85% of New Zealand homes have off-street parking. Because 80% of New Zealand has highly renewable energy resources, there is enough supply for every vehicle in the country to be charged with electricity.

New Zealand is in a great position to benefit from electric vehicles. Compared to other countries, New Zealand’s high amount of renewable resources means that the country produces 80 percent fewer greenhouse gas emissions.

Let Switchme Save YOU $$$!

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The New Zealand Super Fund has recently dumped Genesis Energy, owners of the Huntly Power Station (New Zealand’s largest thermal power station) in order to cut the fund’s carbon intensity and exposure to carbon reserves. As of August 15, 2017, the $35 billion fund, which was established to help cover future state pension costs, is now declared “low-carbon.”

Dumped More than $950 Million in Investments

As part of the New Zealand Super Fund’s move to reduce its carbon footprint, more than $950 million in investments has ended, including its holding in a state-owned electricity company. Although NZ Super has investments in numerous other carbon intensive industry companies, this latest move has been welcomed by environmental and investment groups. It has brought NZ Super a long way towards hitting its target of cutting its exposure to carbon reserves by 40 percent and carbon intensity by 20 percent.

Fund Now Declared “Low-Carbon”

Last year, the fund’s investment strategy pledged to reduce its investment in fossil fuels and instead, target clean energy to prepare for climate change. The overall fund’s carbon intensity is now just under 20 percent and the exposure to carbon reserves was reduced by 21.5 percent. In total, this latest decision saw the fund exit 279 companies.

Still Invested in Other Carbon Intensive Companies

Of the remaining investments, the fund has investments in at least 29 airlines, 139 companies in the “oil, gas and consumables” sector and almost 200 companies in the “metals and mining” sectors. In addition, it still holds high-carbon stocks periodically due to the discretionary decisions of active managers.

Companies Can Return to Portfolio in Future

According to Matt Whineray, Chief Investment Officer, cutting exposure to companies at risk from climate change was not the same as other categorical exclusions, such as tobacco manufacturers. If companies improve their management of climate risk, they will have the opportunity to become a part of the portfolio again in the future.

Financial Markets Under-Priced Climate Change into the Future

Because the global energy system is transitioning away from fossil fuels, reducing exposure to carbon emissions and reserves is a low-cost insurance policy. In addition, the recent weather shows how crucial is to that New Zealand has a variety of energy sources.

Genesis Energy Not Concerned; Understands its Importance

As the long, dry winter of 2017 has already shown New Zealand, Genesis Energy can help provide NZ businesses and households with energy when needed. In 2017, almost half of the company’s energy generation has been from renewable sources, up from 16 percent during 2016. The company is not concerned by NZ Super’s move, as other investors continue to see and support the advantages of this company’s thermal capacity.

Let Switchme Save YOU Money!

Looking for ways to save on your energy bills this winter? If so, Switchme can help! Contact us today for more details?and to use?our free power comparison calculator.?

Low Water Inflow into Clutha River

Compared to the last 85 years of record keeping, the lowest average inflows into the Clutha River were recently seen this past March, April and May. Because of the continued shortage of water into Clutha River's hydro-electric dams, Contact Energy has had to come up with a solution to continue to meet customers’ energy demands.

North Island Gas Plants to the Rescue!

The solution to the water shortage was to turn to Contact Energy’s North Island thermal plants to work harder to fill the energy void. More energy to the North Island (compared to the South Island) is being supplied by the Cook Strait cable.

Thermal Energy Needed when Weather Does Not Cooperate

Although the New Zealand electricity market strives to be as renewable as possible, sometimes it is not possible to meet energy demands using only water and wind as resources. When help is needed, the thermal energy gas stations can help fill the energy gap, which is what is happening currently.

More Rain Would Stop the Lake Levels from Decreasing Any Further

The recent weather cold fronts from the south have been bringing snow instead of rain. This, in turn, has been causing dramatic increases in electricity demand. Overall, however, this winter is warmer and dryer than previous years, so more rain would help increase the water levels and help the power supply issue.

If hydro lake levels continue to drop, more pressure would be applied to alternative power sources throughout the country, which could lead to environmental impacts.

Low Water Levels Resulted in Greater Spot Power Prices

Because hydro-generated energy makes up about 60% of New Zealand’s electricity, the recent low levels in the hydro lakes have meant wholesale prices continue to increase. Customers who are on wholesale pricing agreements with retailers are noticing the increase on their energy bills. Although spot tariffs can offer long-term savings, customers who choose this must be willing to weather periods of higher than average prices, such as what we are currently facing. Spot tariff customers should keep an eye out for price spikes and get into the habit of shifting some of their energy use to off-peak times.

To eliminate any risk for future price spikes, customers should consider switching to a traditional fixed rate or smooth-pay plan.

Let Switchme Save YOU Money!

Has your electricity rate increased sharply, due to the low lake levels? If so, let Switchme help you compare power prices to see if something more reasonable is available! Contact us today for more details and to use our free power price comparison calculator.

With the recent drop in hydro lake levels across the South Island, wholesale (spot) electricity customers have noticed electricity rates increasing since May. Those who are on traditional fixed rate electricity tariffs will most likely not notice any increases in the near future; however, for those who are on spot tariffs, increases are predicted to continue throughout the winter.

Critical Lake Levels are Not Anticipated

60 percent of New Zealand’s electricity is made up of hydro-generated energy. However, similar low-level conditions seen in 2003 that warranted a national electricity conservation campaign are still a long way off. Barring major unexpected equipment failures, there is less than a 2% risk of experiencing critically low lake levels.

Reducing Your Electricity Costs

Consumers on spot tariffs are advised to keep an eye on their provider’s prices and watch for price spikes. Flick Electric, one spot tariff provider, has a mobile app that allows users to receive warning notifications when prices increase. To help reduce the electricity rate increase, it’s best to get into the habit of shifting some of your electricity usage to off-peak times.

Taking Advantage of Off-Peak Rates

Are you a spot tariff consumer who is worried about your hydro bill skyrocketing this winter, or are you a fixed rate user looking to reduce costs? Follow the tips below to help keep your hydro bill manageable:

• Use the dishwasher throughout the night, rather than right after dinner
• Turn on your clothes dryer during the day, or overnight
• Use draught stoppers and tighten hinges, latches and hatches to eliminate heat loss
• If you don’t have central heating, use a heater directly in the room you want to heat and keep the door closed
• Install energy-efficient light bulbs and fixtures, such as shower heads
• Ensure you have proper insulation throughout your home

Completely Eliminate the Worry of an Electricity Increase

Spot tariffs eliminate the buffer between your bill and the wholesale price of power, which changes every half hour. Although this type of pricing system can offer long-term savings, consumers need to be okay with weathering periods of higher than average prices.

Consumers who do not want to risk further price increases should consider switching to a traditional, fixed rate or smooth-pay plan.

Let Switchme Save YOU Money!

Has your electricity rate increased sharply, due to the low lake levels? If so, let Switchme help you compare power prices to see if something more reasonable is available! Contact us today for more details and to use our free comparison calculator.