Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Gas/LPG industry welcomes draft energy strategy

Gas/LPG industry welcomes draft energy strategy

The draft strategy “Developing our energy potential”, has been welcomed by the LPG and gas industries, but LPG Association executive director, Peter Gilbert, says there are inconsistencies between the discussion paper and actions being taken by EECA.

The new strategy notes that ‘Gas is an important direct source of energy in industry and homes, either reticulated or as LPG. The direct use of gas by end consumers can offer consumer and national benefits, particularly when used for large industrial purposes or for water heating’.

“It is very pleasing to see this government recognising the value of direct use of gas, especially for space and water heating purposes,” Mr Gilbert said.

“Encouraging its use will help to increase New Zealand’s energy efficiency, reduce its carbon footprint and reduce the strain on the electricity networks at peak times.”

It’s therefore puzzling, Mr Gilbert said, that EECA will offer subsidies to encourage households to install hot water heat pumps, but won’t do the same for instantaneous gas hot water systems.

“This is strange because instantaneous gas systems are a lower carbon alternative to hot water heat pumps and the draft energy strategy specifically talks about the value of gas and about the need to reduce our carbon profile.”

Therefore the Associations are urging the Energy Efficiency and Conservation Authority (EECA) to reconsider proposed subsidies for the installation of hot water heat pumps because they seem contrary to the intent of the government’s draft energy strategy.

Mr Gilbert noted the draft strategy also reinforces the need to provide better information to consumers to help them make decisions around their energy choices.

“Our industry has long argued this is a key role for EECA, and it’s certainly something that agency is now starting to do.

“But this information must be balanced and impartial, and the playing field must be level.

“EECA’s decision to provide subsidies for heat pump hot water systems and not for gas hot water systems would seem to send a less than balanced message to consumers.”

Gas Association executive director, Stephen Parker, said EECA’s proposed subsidies also flew in the face of recent recommendations by the Gas Industry Company (GIC) that government should incentivise the uptake of gas hot water systems because of their low carbon footprint.

“The GIC commissioned a detailed report that said replacing all of New Zealand’s electric hot water heating with instantaneous gas systems would reduce New Zealand’s C02 emissions by 430,000 tonnes per annum.
“It clearly highlighted the value of direct use of gas, which is supported by the draft energy strategy.

“So, yes, while we are pleased with the direction of the draft strategy, we hope the messages it sends, and those sent by the GIC, are duly noted by those responsible for encouraging consumers to make the best energy choices.”


© Scoop Media

Business Headlines | Sci-Tech Headlines


Government: Delivering Lower Card Fees To Business

Commerce and Consumer Affairs Minister David Clark has today announced the Government’s next steps to reduce merchant service fees, that banks charge businesses when customers use a credit or debit card to pay, which is estimated to save New Zealand businesses ... More>>

SEEK NZ Employment Report: April 2021

OVERVIEW OF APRIL 2021: STATE OF THE NATION: April, for the second consecutive month, saw the highest number of jobs ever advertised on Applications per job ad fell 9% month-on-month (m/m). SEEK job ads were up by 12% m/m. SEEK job ads were ... More>>

Commerce Commission: Warns Genesis Over Business Billing Errors

The Commerce Commission has issued a warning to Genesis Energy Limited about billing errors concerning electricity line charges to business customers. Genesis reported the errors to the Commission. The Commission considers that Genesis is likely to ... More>>

Stats: Lower Job Security Linked To Lower Life Satisfaction

People who feel their employment is insecure are more likely than other employed people to rate their overall life satisfaction poorly, Stats NZ said today. New survey data from the March 2021 quarter shows that 26 percent of employed people who thought ... More>>

The Conversation: The Outlook For Coral Reefs Remains Grim Unless We Cut Emissions Fast — New Research

A study of 183 coral reefs worldwide quantified the impacts of ocean warming and acidification on reef growth rates. Even under the lowest emissions scenarios, the future of reefs is not bright. More>>

The Conversation: Why Now Would Be A Good Time For The Reserve Bank Of New Zealand To Publish Stress Test Results For Individual Banks

Set against the backdrop of an economy healing from 2020’s annus horribilis , this week’s Financial Stability Report (FSR) from the Reserve Bank (RBNZ) was cautiously reassuring: the country’s financial system is sound, though vulnerabilities remain. More>>