Last week's headlines regarding potential power cuts highlighted the growing concern around access to energy for households across the country.

While nationwide efforts prevented winter blackouts, anxieties linger as colder weather approaches.

Professor Gardner emphasises that access to heating is considered a basic human right by scholars, advocates, and even some at the United Nations. 

A recent UK survey found that nearly all respondents (97%) viewed it as essential for a decent quality of life.

Despite this, a significant number of New Zealand households struggle to afford electricity.

In 2023, an estimated 40,000 homes had their power cut due to unpaid bills, and one in five reported difficulty affording their monthly power costs.

Market Forces and the Rise of Fuel Poverty

Professor Gardner attributes this situation partly to New Zealand's market-driven approach to essential services like electricity. 

Major energy companies enjoyed substantial profits in 2023, with Meridian, Contact, Genesis, and Mercury collectively reporting a combined total of NZ$2.7 billion.

Fuel poverty, or difficulty affording adequate heating, is an ongoing challenge in New Zealand, particularly concerning home heating costs.

The UK government defines a fuel-poor household as one that spends more than 10% of their income on energy to maintain a minimum indoor temperature.

The situation has been exacerbated by recent events, including COVID-19, rising inequality, and the cost-of-living crisis.

According to the government, in 2022, 110,000 households couldn't afford to keep their homes adequately warm. 

Māori, Pacific, and low-income households were disproportionately affected.

The consequences of inadequate heating extend beyond discomfort.

Dampness, mould growth, compromised nutrition due to prioritising heating costs, worsened health issues, and spoiled food are all potential risks.

Limited Government Assistance Leaves Many Vulnerable

While Consumer NZ reported that 19% of households faced difficulty paying power bills in 2023 (not meeting the official "hardship" threshold), limited government assistance exists.

Work and Income grants function as loans, adding to the financial strain.

Professor Gardner criticises the current system, which largely places the responsibility on individual consumers.

Those who cannot afford to pay their electricity bills risk disconnection and additional fees.

This approach fails to consider the rising cost of living, with inflation outpacing minimum wage increases.

Social Tariffs: A Potential Solution

Nationalising energy companies may not be a practical solution, but implementing "social tariffs" is a viable alternative.

These government-funded discount plans would specifically target low-income households.

Social tariffs are used internationally to lessen the impact of profit-driven companies in essential sectors.

The UK provides an example, where some telecommunications companies offer subsidised internet and phone plans for those on specific benefits.

This reflects the growing recognition of internet access as a basic human right.

Professor Gardner concludes by calling for a serious review of the system in New Zealand, considering the substantial profits of energy companies and the ongoing cost-of-living pressures.

With winter approaching, ensuring access to affordable energy necessitates immediate action to ensure all New Zealand households can stay warm.