Affordability and Wellbeing
There was recognition from consumer groups, interest groups, local government and business groups that the variable impacts of policies, and affects of any price rises, on various economic groups needs to be considered and mitigated.
Fuel poverty was recognised by some as a growing problem. Many submitters, especially individuals, supported energy efficiency measures that reduce energy usage and improve living conditions being targeted at those least able to pay. Other submitters suggested targeted income support policies be used to ensure ongoing affordability for consumers on low incomes.
One submitter thought externality pricing should not adversely affect the issues of affordability and fairness, with recent wholesale price movements being far greater than any discussed increases due to carbon pricing.
There were suggestions that revenue raised through any carbon charges could be recycled to support subsidised measures.
Household heating, lighting and cooking
Electricity- avoidable disconnection
There was general support from energy companies for the Electricity Commission initiatives relating to avoidable disconnection. Some noted more information on energy efficiency practices and technologies was needed. Electricity retailers noted:
- there were comprehensive processes to manage disconnection in place
- they are actively involved with the Electricity Commission to assist low income consumers
- retailers could help by providing referrals to social agencies
- clear and reasonable credit policies should be in place
- taking on higher credit risk would result in higher prices
- only a small percentage of consumers result in disconnection and the EC initiatives are enough to assist with this
- disconnection should be a measure of last resort.
Low Fixed Charge Tariff
Local government and several others submitters endorsed improvements to the low fixed charge regulations to take into account regional climate variations. This would provide relief to some people. A submitter noted it could leave many wanting and suggested government review inverse step tariffs for domestic consumers to provide further relief.
Energy suppliers commenting on this area cited the Government's Low Fixed Charge Tariff policy as an example of poorly considered policy that misses the mark in that it supports high income low energy households while it penalises poor, large families. One said changes could result in cross-subsidisation and increasing the LFCT level was inconsistent with energy efficiency proposals. One company favoured a change to the average consumption level to be based on network areas rather than an arbitrary geographical line across NZ.
Major users noted that it was distortionary because of variable sunk fixed line costs and that the regulations should be repealed.
Mobility
Local Government reiterated the need for Government to take a more active role in development of sustainable urban form and transport infrastructure. LGNZ requests Government establish a partnership with them to progress planning for the future. There is an opportunity to update and directly tie the Urban Design Protocol to energy policy or to develop a sub-strategy on the theme of urban form and functionality in a broader context.
This view was supported by a range of other submitters. The implication for land use and integrated transport planning are discussed in more detail in the chapter on low emissions transport.
Another concern of submitters was that the term mobility should be replaced with accessibility – accessibility implies access to services and localities but does not necessarily require or imply increased travel.
Making informed energy decisions
Comment on information on energy options was limited and views on whether there was adequate access to information were mixed. Individuals suggesting more information was needed tended to favour use of the media. Other submitters cited useful websites - low cost information services currently available. These submitters tended to reject more extensive information services and favoured suppliers and intermediaries providing information.
Other initiatives for low income earners
Those responding to the question on this issue frequently cited initiatives to improve insulation especially in older homes as a high priority measure.
Maori submitters noted that EECA's programmes for retrofitting insulation into low income houses is of limited impact in Maori communities because it requires a great deal of local coordination to access the funding, the application process is long and involved. There needs to be greater help in accessing these programmes.
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