Electricity efficiency and the Commission

The Electricity Commission promotes and facilitates electricity efficiency and conservation, reflecting the Government Policy Statement (GPS) on Electricity Governance and the Electricity Act 1992 (Act) . Its brief includes funding of programmes to provide incentives for cost effective electricity efficiency and conservation. It is funded by a levy on the electricity industry.

Cost-effective electricity efficiency can benefit consumers by:

• reducing energy consumption while maintaining the same or better lifestyle and productivity outcomes;
• helping defer expensive investment in new generation and transmission; and
• contributing to New Zealand's wider environmental policy.

With oil, gas and electricity prices rising, consumers are becoming increasingly concerned that all cost-effective electricity efficiency options be fully explored.

There are cost-effective efficiency investment opportunities in all sectors of the economy but few are being taken up. This is because business and industry often require a much higher return on capital than expected in the electricity industry. The result has been investment in generation and transmission by the electricity industry in preference to cheaper efficiency investments that would achieve similar results. 

The Commission is seeking to measure the benefits of electricity efficiency across all sectors and then to implement a programme that supports mainstream uptake of electricity efficiency to complement transmission and generation.

Key to the programme will be an approach which seeks to align commercial incentives for the delivery of mainstream products and services in electricity efficiency. To maximise the commercial value of electricity efficiency, the Commission seeks to leverage off the supply chain through close working relationships with its partners—government agencies, energy trusts, electricity retailers, electricity distribution companies, equipment manufacturers, marketing agents and industry lobbies.

Commission policy is to work closely with other government agencies, such as the Energy Efficiency and Conservation Authority (EECA) in applying its levy funds to electricity efficiency projects chosen to deliver efficiency benefits to levy payers. On 31 August 2005, EECA and the Commission signed a memorandum of understanding.pdf [339 KB]detailing working principles and arrangements between the parties to avoid duplication and waste.

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