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EECA To Consult On Proposed Energy Levies

EECA is seeking feedback on its proposed energy levy-funded activities for the 2022/23 year.

EECA receives part of its funding from levies collected from the engine fuel, electricity and gas sectors, with the levies funding allowing EECA to continue work to improve energy productivity and reduce carbon emissions.

EECA’s Chief Executive Andrew Caseley says the levies partially fund activities that reduce energy use and energy-related greenhouse gas emissions.

"Forty one percent of New Zealand’s greenhouse gas emissions come from energy use and there are opportunities across the economy to make significant carbon reductions."
Mr Caseley says increasing energy efficiency saves money across the economy, both for consumers and businesses.

“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 2022/23 year, EECA is consulting on a total of $17.3 million from the three energy levies:

  • Petroleum and Engine Fuel Monitoring Levy: $10.5 million
  • Electricity Industry Levy: $5.3 million
  • Gas Safety, Monitoring and Energy Efficiency Levy: $1.5 million

Mr Caseley says EECA is seeking a $3 million increase in the levies compared to the previous year, which is solely from the transport fuels levy, to primarily help fund the increased funding for the Low Emission Transport Fund. He says the increase ($200,000) in the gas levy, and the corresponding decrease in the electricity levy, reflects EECA’s increasing focus on reducing energy-related greenhouse gas emissions.

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The levies will help fund:

  • transitioning large energy users, the wider business sector and Local Government from fossil fuels to low-emissions fuels and technologies
  • the low emission transport fund and the low-emissions transport behaviour change programme
  • the regulatory and standards framework to prevent inefficient products and appliances being sold in New Zealand.

Consultation on the 2022/23 levy programme is open from 8 November to 13 December 2021. People who want to make a submission can email EECA at levyconsultation@eeca.govt.nz, or write to us at EECA, 44 The Terrace, Wellington.

2022/23 Energy Levies Consultation
 

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