Power price hikes and new incentives from the Commerce Commission will strongly encourage energy efficiency in the next five years, an energy efficiency expert says.
“The pricing and regulatory environment will give a substantial boost to investment in more efficient appliances such as LEDs, efficient shower heads and heat pump water heaters, which benefit homes and businesses wanting to save money,” said Dr Chris Mardon, Managing Director of energy efficiency company Ecobulb.
New regulations announced this week will allow lines companies to invest $92 million in non-traditional spending such as energy efficiency.
“Previously lines companies were reluctant to help their customers lower their power bills, because the Commission did not provide funding for energy efficiency. But the Commission’s new Innovation and Non-Traditional Solutions Allowance (INTSA) gives lines companies the right to recover spending on energy efficiency.
“Homes and business should thank the Commission for providing the opportunity for lines companies to invest in energy efficiency. The baton has now been passed on to the 16 fully regulated lines companies to make the most of this opportunity and lower energy consumed by their customers.
“While there are many worthy candidates for INTSA, the Commission has sent a clear message that it expects lines companies to use at least part of their allowance to support energy efficiency,” Mardon said.
Due to greater investment needs, lines companies will on average put up their charges by $10 a month next year. When coupled with higher transmission charges and the cost of generation, power prices will likely rise sharply next year.
“Consumers can blunt the impact of higher prices by reducing their energy consumption through energy efficiency.
“Rolling out various low-cost energy saving measures to 1.5 million New Zealand homes could save kiwis $1 billion a year in power, with a four-month payback based on energy savings,” Dr Mardon said.
