Photo Source: Riki Risnandar
A November 2024 report from the University of Otago’s Public Health Communication Centre (PHCC) reveals that many low-income households in New Zealand are grappling with the effects of rising electricity prices.
The study explores the issue of energy poverty, showing how increasing costs are forcing families to prioritise between energy bills and other essential needs.
Understanding Energy Poverty in New Zealand
Energy poverty is affecting a growing number of low-income households in New Zealand, as families are forced to allocate more of their income to energy expenses.
The latest round of price increases, driven by both international energy trends and local production costs, has worsened the situation. While government subsidies and financial aid offer a degree of support, many households are still struggling to cope with the escalating costs of basic energy services.
PHCC Findings Reveal the Impact of Rising Energy Costs
The Public Health Communication Centre (PHCC) has released a report outlining the significant burden that rising electricity prices are placing on low-income households in New Zealand.
Many families are now spending a considerable portion of their income—sometimes more than 10%—on energy costs, leaving them with less to spend on basic needs. Vulnerable populations, including the elderly and families with young children, are among those most affected by the growing energy shortfall.
Dr. Kimberley O’Sullivan and her colleagues from the University of Otago present the findings in the latest Briefing from the Public Health Communication Centre.
“Our research reveals that the most vulnerable households have already reduced their electricity use to the bare minimum. With ongoing price increases, these families have no room to adjust further. Many report only keeping essential appliances like lights and fridges on, while cutting back on washing, cooking, and rarely using heating,” says Dr. O’Sullivan.
The Toll on Health and Well-Being
The effects of energy poverty are increasingly visible, with health experts warning that insufficient heating is contributing to a rise in respiratory issues, particularly among young children and the elderly.
Research published in the European Journal of Public Health found that children residing in homes with poor energy access were 1.5 times more likely to experience asthma and respiratory problems than their peers in well-heated households.
The UCL Institute of Health Equity also reported that energy poverty accounts for 10% of excess winter deaths among the elderly.
Many families are facing mounting stress from high energy costs, often cutting back on social activities and travel. In many cases, the financial strain extends to other essentials, such as food and healthcare, further undermining the well-being of affected households.
Government Initiatives and Potential Solutions
The government has introduced programmes, including energy subsidies, to help alleviate the financial strain on low-income households. However, experts suggest that these efforts need to be expanded and adjusted to address the growing scale of energy poverty.
Long-term solutions proposed include stronger regulation of energy prices, increased funding for energy-efficient home upgrades, and incentives for adopting renewable energy technologies.