'Cold, inefficient' homes to blame for power outage fears, says Green Building Council

New Zealand has avoided an energy crisis thanks to demand reduction after a freezing start to Friday, but green building advocates say the situation could have been dodged altogether.  

The boss of one energy firm says the electricity industry should be forced to compensate Kiwi families for reducing their usage after Transpower warned of possible power outages.  

On Thursday, the state-owned electricity transmission firm warned of the possible forced cuts between 7am and 9am on Friday due to an unseasonable cold snap, combined with low wind generation.  

Parts of the South Island struggled to get out of the negatives, with the south Canterbury town of Twizel still sitting at 1.2C as of 10:45am.  

The heat was now on politicians, with the blame game being played.  

"For years we've been calling for the Government to deal with the terrible state of New Zealand homes. Millions of New Zealanders live in poorly insulated and draughty housing - there's no wonder when the weather gets cold, they need to blast the heater," Green Building Council chief executive Andrew Eagles said on Friday  

"It's like watering a garden with a leaky hose filled with holes.  We can turn on more water but what's the point if we don't stop the leaks?  

"After today's experience there'll be a lot of talk about new electricity generation. It's vital that... we look at one of the major causes of today - cold, inefficient housing."  

Octopus Energy, a UK renewable power company that launched in New Zealand in 2022, urged MPs on Thursday to update regulation so Kiwis are compensated during electricity shortfalls.  

"The retail market has a crucial role to play in managing demand to keep the lights on, but the tools have to be more sophisticated than emails to families asking them to turn down their heaters because it's too cold," chief operating officer Margaret Cooney said.  

"The current regulations favour the big four gentailers, deterring investment from new players in both retail and generation. This keeps the market on the brink, shuts out technological innovation and keeps prices high.  

"Rather than just paying that money to polluting fossil fuel generation, we could pay the same to customers for sacrificing their hot showers and toast and reducing demand. It works for the Brits and I'm sure Kiwi customers would appreciate it too."  

In an update at 10am on Friday, Transpower thanked New Zealanders for reducing demand.  

"It was colder than expected, so the response from Kiwis at home and our major industrial electricity users was essential to ensure that all New Zealanders had continuous access to power this morning," chief executive Alison Andrew said.  

Alison Andrew.
Alison Andrew. Photo credit: Newshub.

"We are grateful for your support through this challenging time.  

"The response is now over and there is no reason to expect any further need to conserve electricity today, or this weekend."