What the ETS means for householders and individuals

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Householders brochure

How you can lower your energy costs and reduce greenhouse gas emissions.

Greenhouse gas emissions from households

The Emissions Trading Scheme (ETS) does not directly involve New Zealand households. However, households contribute to climate change through their use of electricity, gas and transport fuels, and their waste, all of which create greenhouse gas emissions. Everyone can make a difference in reducing greenhouse gas emissions by using energy more efficiently, reducing waste and using renewable energy alternatives, such as solar water heating.

The ETS does not require households to trade emission units. Households will feel some of the effects of the scheme as the sectors that are involved pass their costs on to customers.

Potential price rises

The main impact of emissions trading for households will be a rise in transport fuel and electricity prices.

Until 2012, the costs of the ETS for households have been halved through amendments to emissions trading legislation. From 1 July 2010, fuel prices are likely to rise by about 3c/L, which is less than recent price rises due to the increasing cost of oil. Electricity costs are likely to increase by about 1c/kWh. The price impact on the average household will be $165 a year.

There will also be a range of secondary effects, such as increases in the prices of some goods as a result of increased freight charges.

How can households save money on power and fuel costs?

Householders can make choices and take action to reduce the impact of increased electricity and fuel costs caused by the emissions trading scheme. These actions will reduce greenhouse gas emissions and also give health benefits. Some of these choices can be made now and take little effort or investment; others take more investment and effort but have larger potential benefits.

Simple ways to reduce energy use

  • Switch off appliances at the wall – New Zealanders waste over $100 million a year by leaving appliances on stand-by.
  • Use cold water instead of warm for laundry and save $50 to $75 a year.
  • Inflate your tyres correctly and you’ll use up to five per cent less fuel.
  • Walking and cycling are ideally suited to short trips. It is good exercise and can save you money on fuel.

Bigger steps

  • When buying appliances, chose ones with the blue ENERGY STAR mark, which is only awarded to the most energy efficient products.  You can also compare energy use with the energy rating label– the more stars on the energy label, the better the energy efficiency.
  • Get insulated.  A well-insulated home takes less energy to heat properly, and is warmer and healthier to live in.
  • Once your house is insulated, installing a clean, efficient heating system will keep your home warm using less energy.
  • When buying a new or late model car, compare the fuel performance at RightCar and look for the vehicle’s fuel economy label. The more stars it has the more you save on fuel, and the lower your emissions.

There are many more ways to save power and fuel at home and on the road — find out more at Energywise's Reduce your carbon footprint webpage.

What assistance will be available to householders?

Insulation and clean heating

Funding is available from the Energy Efficiency and Conservation Authority to help retrofit homes with insulation and clean, low emissions heating, under the government's Warm Up New Zealand: Heat Smart programme. The government has committed to spending $347 million over four years, during which 188,500 homes will be made warmer,  healthier, and and more energy efficient.

Solar water heating

A solar water heating system uses the sun to heat your water, and can reduce your hot water costs by 50-75%.  The Energy Efficiency and Conservation Authority provides funding for approved solar water heating systems. 

Vehicle use

Fuel$aver is a useful website that provides information to compare the fuel consumption of different vehicle models. The website enables drivers to calculate vehicle fuel costs by considering their vehicle model, the distance travelled, the kind of fuel that is used, and their driving habits.

The Right Car website offers advice on choosing cars that use less fuel, produce lower emissions and have improved safety features.

Other information about climate change

Find out more about the science behind climate change and physical impacts and adaptation.

Last updated: 18 June 2010

Tools and information

  • Energywise — Make choices to be more energy efficient.
  • Fuel$aver — Compare vehicle fuel consumption.
  • Right Car — Choose the right car for you.