As winter approaches, many households are bracing for rising heating bills. The cost of heating can account for approximately one-third of an average power bill each month. Understanding the most economical ways to heat your home can lead to significant savings. This article explores various heating options and their associated costs.

Heat Pumps: The Efficient Choice

Heat pumps are emerging as a leading option for efficient home heating. Though they may require a high initial investment, they offer remarkable energy efficiency. According to Gareth Gretton, lead adviser on energy-efficient appliances at the Energy Efficiency & Conservation Authority, heat pumps are “by far and away” the most effective form of heating. The running cost for a heat pump varies between 25 cents to 35 cents per hour for every kilowatt hour (kWh) of heat produced. For example, a 6 kW heat pump would cost around $1.50 per day if charged at 25 cents per kWh.

Gretton highlighted that heat pumps can generate three to four units of heat for every unit of electricity consumed. This efficiency is unmatched by any other heating method. Although New Zealand homes are often poorly insulated, heat pumps still operate effectively at lower outdoor temperatures, typically between 5°C to 10°C.

To maximize efficiency, Consumer recommends setting the heat pump temperature no higher than 21°C and to increase the fan speed instead for quicker heating. While Healthy Homes standards do not mandate landlords to install heat pumps in rental properties, many opt to do so, providing at least one safe and efficient heating source for the main living area.

Debate continues over whether it is more cost-effective to keep a heat pump running continuously or to turn it off when not in use. James le Page from Consumer suggests that turning it off may be more beneficial for most homes, given that many dwellings in New Zealand lose heat due to inadequate insulation.

Electric Heaters and Their Costs

Electric heaters provide a straightforward method for heating spaces but come with their own set of considerations. All forms of resistance electric heating convert electricity to heat at a ratio of one to one. Gretton notes that there is no difference in efficiency among electric resistance heaters; however, their effectiveness can vary based on the type.

For instance, radiant heaters may work well in large areas or rooms with high ceilings. Portable fan heaters serve well in smaller spaces, such as bedrooms or offices, despite being relatively expensive to operate. A 2 kW heater running for five hours daily typically costs about $2.50, while a 1,200 kW radiant heater could amount to around $1.50 per day.

Other Heating Options: Dehumidifiers, Gas, and Wood Burners

Surprisingly, dehumidifiers can also help to raise room temperatures slightly while removing moisture. Gretton points out that these devices can serve a dual purpose—acting as a plug-in heater while improving indoor air quality. A common compressor dehumidifier in New Zealand costs about 5 cents per hour to operate.

Gas heaters, while popular, are not recommended as an effective heating solution. Gretton advises against unflued gas heaters due to their potential health risks and inefficiencies. Flued gas heaters also lose some efficiency, generating less heat than the gas consumed.

Wood burners are often perceived as cost-effective but can be less efficient compared to heat pumps. Gretton explains that burning wood cleanly and efficiently poses challenges. While those with free firewood may find it economical, purchasing firewood usually makes wood burners more expensive than heat pumps.

As homeowners consider their heating options this winter, understanding the differences in efficiency and costs can lead to more informed decisions. Prioritizing energy-efficient solutions like heat pumps may not only reduce bills but also contribute positively to the environment.

New Zealand’s sharemarket experienced a downturn on October 2, 2023, closing lower despite robust performances from markets in the United States and Australia. The S&P/NZX 50 Index finished the day down by 25 points, or 0.19%, settling at 12,880.40. Trading on the exchange saw approximately 39.8 million shares change hands, valued at around $160.99 million. The broader market reflected mixed results, with 81 stocks advancing and 58 declining on the main board.

While New Zealand’s market faltered, US stocks continued their upward trajectory. The Nasdaq composite surged by 153.78 points, or 0.7%, reaching a new record high of 20,884.27. Similarly, the S&P 500 climbed 33.66 points, or 0.5%, to close at 6,297.36. These gains were driven by positive economic indicators and increased investor confidence, which contrasted sharply with the performance in New Zealand.

The lackluster day for New Zealand equities may be attributed to several factors, including a relatively quiet trading environment and investor sentiment that diverged from international trends. Analysts observed that local investors appeared cautious, particularly in the face of strong performances in larger markets.

The disparity in market behavior raises questions about the underlying economic conditions in New Zealand compared to its international counterparts. With the US markets reaching new heights, the resilience of the local economy may be put to the test in the coming weeks as investors assess the potential impacts of global economic shifts.

As the trading week progresses, market participants will be closely monitoring both domestic and international developments. The ability of New Zealand’s market to regain momentum will depend heavily on upcoming economic data and corporate earnings reports, which could either bolster confidence or lead to further caution among investors.

New Zealand’s sharemarket experienced a decline on October 20, 2023, closing down despite robust performances in both the United States and Australia. The S&P/NZX 50 Index fell by 25 points, or 0.19%, finishing the day at 12,880.40. Trading volume reached 39.8 million shares, valued at approximately $160.99 million. On the main board, there were 81 stocks that rose while 58 fell.

The US markets, in contrast, continued to advance, setting new records. The Nasdaq surged by 153.78 points, or 0.7%, to close at 20,884.27, while the S&P 500 gained 33.66 points, or 0.5%, reaching 6,297.36. This divergence highlights a notable disconnect between New Zealand’s market and its larger counterparts in the US and Australia.

Investor sentiment in New Zealand appeared cautious, as the day was characterized by relatively low trading activity. The market’s overall performance did not align with the optimism seen in global markets. Analysts suggest that local factors may be influencing investor decisions, contributing to the weaker closing numbers.

In the US, the positive momentum was driven by strong earnings reports and encouraging economic data, which have bolstered confidence among investors. The Nasdaq’s record high reflects a growing interest in technology stocks, while the S&P 500’s performance indicates broad-based gains across various sectors.

New Zealand’s market dynamics may require closer examination as investors navigate the current climate. While the S&P/NZX 50 Index has faced challenges, the overall economic outlook remains a topic of discussion among financial analysts. The divergence between New Zealand’s performance and the stronger gains in the US and Australian markets raises questions about the local economy’s resilience and future trajectory.

As the week progresses, market participants will be keenly observing developments that may influence trading patterns. The next trading days will reveal whether New Zealand’s sharemarket can recover or if it will continue to lag behind its counterparts abroad.

The Electricity Authority has announced significant changes aimed at simplifying and expediting the process for connecting to New Zealand’s national electricity grid. This initiative is designed to reduce both costs and time for businesses seeking to connect infrastructure, including public electric vehicle (EV) charging stations, manufacturing facilities, and solar farms.

The authority’s general manager, Tim Sparks, emphasized that the new measures will standardize connection rules across the country’s 29 lines companies. “Inconsistencies and inefficiencies in the application processes and pricing methodologies can add unnecessary time and cost to projects, particularly for those who want to operate in multiple regions,” Sparks stated.

Under the revised guidelines, lines companies will be required to provide the least-cost, technically acceptable solutions for connections. This approach aims to ensure that businesses are not burdened with costs for network improvements they did not request. “Any extra costs, such as running a connection underground, will be the responsibility of the party requesting it,” Sparks explained, highlighting a commitment to fair pricing.

Key Changes to Connection Processes

The Electricity Authority’s changes also target larger users, including operators of EV charge points and public transport services. These adjustments include new timeframes for decision-making, which previously lacked baseline protections for significant energy users. “To date, large energy users haven’t had baseline protections because the rules have only applied to electricity generators directly connecting to the network,” Sparks noted.

The updated framework is expected to enhance transparency and certainty for all stakeholders involved in the connection process. Sparks is optimistic that providing a clear and consistent procedure will make it more efficient for everyone involved.

The majority of the requirements concerning new connection pricing are set to take effect on 1 April 2026. This timing aligns with other distribution pricing changes and processes established by the Commerce Commission. Meanwhile, the new connection application procedures will be implemented in the second half of 2026.

The Electricity Authority’s initiative represents a proactive step toward modernizing the electricity network, ensuring that New Zealand can meet the growing demand for reliable and efficient energy solutions. As businesses prepare for these changes, the focus remains on creating an environment that fosters innovation and sustainability in the energy sector.