EECA consulting on use of funding from three levies
The Energy Efficiency and Conservation Authority (EECA) is inviting views on our proposed use of funds recovered from three levies for the 2017/18 financial year.
The Crown recovers some of EECA’s funding through a levy on electricity industry participants. In 2017/18, the Crown also intends to recover funding through the Petroleum or Engine Fuels Monitoring Levy (PEFML) and the gas levy.
EECA will be requesting $13.0 million in levies – the same as previous years – but spread across three energy levies in proportions set by the Government:
- Electricity levy, 40% to collect $5.2m
- PEFML, 50% to collect $6.5m
- Gas levy, 10% to collect $1.3m.
The changes mean EECA will be able to use levy funding to implement programmes in areas where the greatest impact in emissions reduction and energy efficiency can be made.
“This is very timely, given New Zealand’s climate change commitments,” says EECA Chief Executive Mike Underhill. “We want to focus more effort in the transport sector, which relies almost completely on fossil fuels, and the industrial heat sector, where 67% of the supplied energy is from non-renewable resources.”
EECA will use levy funding to run programmes directly linked to the source of funding. For example, PEFML funds could be used for EECA’s electric vehicles promotion campaign and to administer the Low Emission Vehicles Contestable Fund. Gas levy funds could be used to support measures such as tuning gas boilers to make them more efficient.
The changes are subject to the passage of enabling legislation, the Energy Innovation (Electric Vehicles and Other Matters) Amendment Bill. It is intended for changes in the Bill to come into effect on 1 July 2017.
Views can be expressed either through a full submission or a short online survey.
The consultation period opens on 9 November 2016 and closes at 5pm on 9 December 2016.
Notes to editors
EECA is required by regulations to consult on its electricity efficiency levy-funded work programme for 2017/18.
EECA is also inviting feedback on the proposed PEFML and gas levy-funded work programmes for 2017/18.
From 2018/19, EECA will be required to formally consult on the work programmes funded by all three levies and the proportions of EECA’s budget allocated from each levy source.
A report on EECA's work funded by the electricity levy in 2015/16 is available as part of the consultation document.