EECA (the Energy Efficiency and Conservation Authority) is seeking feedback on its proposed energy levy-funded activities for the 2023/24 year.
A portion of EECA’s work programme is funded by levies collected from the road transport fuel, electricity and gas sectors.
This funding helps EECA to continue its work in improving New Zealand’s energy efficiency and use of renewable energy sources and reducing New Zealand’s energy-related carbon emissions.
"Around 40% of our country’s greenhouse gas emissions come from energy use – primarily from fossil fuels,” says EECA Chief Executive Andrew Caseley.
“EECA’s purpose is to mobilise New Zealanders to be world leaders in clean and clever energy use.
“Improving energy efficiency benefits all New Zealanders by reducing costs to businesses and households, and will help us be more sustainable when it comes to energy use.”
New Zealand spends about $18.6 billion on energy each year, and EECA estimates the country could save up to 20% of its energy use through improved energy efficiency by 2030.
For the 2023/24 year, EECA is consulting on a total levy request of $20.3 million across three energy levies:
- Petroleum or Engine Fuel Monitoring levy: $13.5 million
- Electricity industry levy: $5.1 million
- Gas Safety, Monitoring and Energy Efficiency levy: $1.7 million
The consultation document outlines EECA’s proposed levy spend, which has increased by $3 million compared with the previous year’s total.
“The proposed $0.2 million increase in the gas levy, and $0.2 million decrease in the electricity levy, reflects the changing proportion of our activities in relation to these energy sources," says Caseley.
“This helps us to keep our focus on the areas where we can deliver ongoing efficiency benefits but also where the biggest benefits for emissions reduction exist.”
The proposed $3 million increase from the Petroleum or Engine Fuel Monitoring levy reflects the government’s increasing contribution to the Low Emissions Transport Fund (LETF).
The Low Emission Transport Fund, administered by EECA, supports the demonstration and adoption of low-emission transport technology, innovation and infrastructure to accelerate the decarbonisation of the New Zealand transport sector.
The levies will help to partially fund:
- Efficient and Low emissions transport – through the Low Emission Transport Fund and Low Emissions Behaviour Change Programme
- Regulation of inefficient products – through the Equipment Energy Efficiency (E3) Programme
- Productive and low-emissions business – through the Technology Demonstration Programme, Large Energy Users Programme, NABERSNZ Programme, Industry Development Programme, and Sector Decarbonisation Programme
- Government leadership – through the Local Authorities Programme.
Consultation on the 2023/24 levy programme opened 14 November and will close 19 December 2022. People who wish to make a submission should email EECA at levyconsultation@eeca.govt.nz.
The consultation document is available on the EECA website.