Latest news with #EnergyActionPlan
Scoop
28-05-2025
- Business
- Scoop
Businesses Struggling To Keep Doors Open As Energy Costs Surge
Press Release – Auckland Business Chamber New Zealand businesses are suffering under the yoke of rising energy costs, with many reluctant to speak out for fear of commercial retaliation from major energy suppliers. That's the main take-out from a new survey carried out by the Auckland Business Chamber, together with policy and advocacy organisation the Northern Infrastructure Forum (NIF). Survey responses were garnered mainly from SMEs in the Upper North Island, with manufacturing the most heavily represented sector. Chamber CEO Simon Bridges says the survey findings show that energy costs are right at the top of the list of concerns for businesses, in what is a very challenging operating environment. 'Nearly 90% of respondents say that energy costs have increased in the past year, and just under 50% describe those costs as highly concerning. When energy costs combine with the pressure from weak market demand, inflation and increased compliance costs, the result is that many businesses are struggling to keep their doors open.' Mr Bridges says one unexpected, and troubling, insight from the survey was the reluctance on the part of businesses to be identified when sharing their struggles with energy costs, for fear of commercial repercussions. 'Many of the businesses we spoke to – especially those dependent on gas supply – were really uneasy about speaking publicly, for fear that it could jeorpardise their ability to secure future energy contracts with the gentailers, who control close to 85% of the retail market. Whether this fear reflects an actual or perceived risk, it points to serious issues with the way market power is being exercised, and is really worrying. 'It's high time the Government had a good, hard look at the vertically integrated gentailer model, and the impact it's having on the performance of the sector.' NIF Executive Director Barney Irvine says the survey results also underline the drag that energy costs are placing on New Zealand's growth and productivity, and on people's livelihoods. 'As a response to rising energy costs, 52% of business surveyed say they have increased the prices they charge to customers; a quarter say they cut back production; the same proportion say they have laid off staff; and just under 20% have cancelled or deferred investment. Unnecessarily high energy costs impact on everyone.' Businesses are looking to the Government for leadership, he adds. 'Over three-quarters of survey respondents believe that the Government should treat addressing energy costs as a high or very high priority, and they're absolutely right. 'The Government has a good sense of what needs to be done to turn the performance of the sector around for the long-term; what's needed now is swift, decisive action.' In particular, the Chamber and NIF want to see the ten-point Energy Action Plan they launched in February this year – which focused on strengthening sector stewardship, improving resilience, and increasing generation and competition – incorporated into government policy. Key findings from the survey include: Nearly 90% of respondents say that energy costs have increased over the past year, with over 40% reporting that the increase has been large or very large Just under 50% of respondents describe energy costs as highly concerning (i.e., a rating of 8-10 out of 10), similar to the level in concern in relation to market demand, inflationary pressure and compliance costs Over 60%% report an impact on their business as a result of rising costs, with 34% describing the impact has as large or very large As a response to rising costs, 52% of respondents say they have increased their own prices, while 25% report having cut back production, and the same proportion report having laid off staff. Just under 20% have cancelled or deferred investment Over 80% expect prices to increase again in the year ahead
Scoop
28-05-2025
- Business
- Scoop
Businesses Struggling To Keep Doors Open As Energy Costs Surge
New Zealand businesses are suffering under the yoke of rising energy costs, with many reluctant to speak out for fear of commercial retaliation from major energy suppliers. That's the main take-out from a new survey carried out by the Auckland Business Chamber, together with policy and advocacy organisation the Northern Infrastructure Forum (NIF). Survey responses were garnered mainly from SMEs in the Upper North Island, with manufacturing the most heavily represented sector. Chamber CEO Simon Bridges says the survey findings show that energy costs are right at the top of the list of concerns for businesses, in what is a very challenging operating environment. 'Nearly 90% of respondents say that energy costs have increased in the past year, and just under 50% describe those costs as highly concerning. When energy costs combine with the pressure from weak market demand, inflation and increased compliance costs, the result is that many businesses are struggling to keep their doors open.' Mr Bridges says one unexpected, and troubling, insight from the survey was the reluctance on the part of businesses to be identified when sharing their struggles with energy costs, for fear of commercial repercussions. 'Many of the businesses we spoke to – especially those dependent on gas supply – were really uneasy about speaking publicly, for fear that it could jeorpardise their ability to secure future energy contracts with the gentailers, who control close to 85% of the retail market. Whether this fear reflects an actual or perceived risk, it points to serious issues with the way market power is being exercised, and is really worrying. 'It's high time the Government had a good, hard look at the vertically integrated gentailer model, and the impact it's having on the performance of the sector.' NIF Executive Director Barney Irvine says the survey results also underline the drag that energy costs are placing on New Zealand's growth and productivity, and on people's livelihoods. 'As a response to rising energy costs, 52% of business surveyed say they have increased the prices they charge to customers; a quarter say they cut back production; the same proportion say they have laid off staff; and just under 20% have cancelled or deferred investment. Unnecessarily high energy costs impact on everyone.' Businesses are looking to the Government for leadership, he adds. 'Over three-quarters of survey respondents believe that the Government should treat addressing energy costs as a high or very high priority, and they're absolutely right. 'The Government has a good sense of what needs to be done to turn the performance of the sector around for the long-term; what's needed now is swift, decisive action.' In particular, the Chamber and NIF want to see the ten-point Energy Action Plan they launched in February this year – which focused on strengthening sector stewardship, improving resilience, and increasing generation and competition – incorporated into government policy. Key findings from the survey include: Nearly 90% of respondents say that energy costs have increased over the past year, with over 40% reporting that the increase has been large or very large Just under 50% of respondents describe energy costs as highly concerning (i.e., a rating of 8-10 out of 10), similar to the level in concern in relation to market demand, inflationary pressure and compliance costs Over 60%% report an impact on their business as a result of rising costs, with 34% describing the impact has as large or very large As a response to rising costs, 52% of respondents say they have increased their own prices, while 25% report having cut back production, and the same proportion report having laid off staff. Just under 20% have cancelled or deferred investment Over 80% expect prices to increase again in the year ahead
Zawya
07-02-2025
- Business
- Zawya
Ramaphosa's Electricity Reform Marks Turning Point for South Africa's Energy Future
South Africa's energy sector is entering a new phase of reform, with President Cyril Ramaphosa positioning the recently enacted Electricity Regulation Amendment Act as a transformative step toward ending load shedding and ensuring long-term energy security. In his 2025 State of the Nation Address, Ramaphosa underscored the Act's role in restructuring the country's electricity market, allowing greater private sector participation and competition in power generation. The Electricity Regulation Amendment Act, which came into effect on January 1, 2025, sets the foundation for an open electricity market, where multiple entities can generate and sell power. This marks a decisive shift away from Eskom's historic monopoly, enabling independent power producers to compete, drive efficiency and accelerate energy diversification. President Ramaphosa has emphasized that the Act will not only expand generation capacity, but also mobilize private sector investment in critical infrastructure such as transmission networks, which have long suffered from underinvestment and aging equipment. The government's broader Energy Action Plan, launched to address the electricity crisis, has already led to a notable reduction in load shedding over the past year. Investments in strengthening South Africa's transmission infrastructure are underway to ensure that additional renewable energy projects can be integrated into the grid. Efforts to improve the performance of Eskom's coal plants have been ramped up, with maintenance programs extending the lifespan of key power stations. Meanwhile, more than 5,000 MW of renewable capacity has been procured through the Renewable Energy Independent Power Producer Procurement Program, with new solar and wind projects expected to come online in the coming months. Moreover, JUWI recently announced $320 million to develop three solar projects totaling 340 MW in 2025, while Eskom reconnected the second unit of the Koeberg nuclear power plant to boost supply. Large-scale battery energy storage systems are also being rolled out to enhance grid stability – with AMEA Power developing the Gainfar and Boitekong projects of 300 MW each – while gas-to-power solutions are being explored to provide flexible backup capacity. As South Africa undergoes this market transformation, the upcoming Africa Energy Week (AEW): Invest in African Energies 2025 conference will serve as a crucial platform for engaging investors, policymakers and industry leaders on the country's energy future. AEW, scheduled for September 29-October 3 in Cape Town, will focus on attracting private capital for energy infrastructure, showcasing opportunities in renewables, natural gas and critical power transmission projects. With South Africa working to unlock $13 billion in climate finance for its Just Energy Transition, AEW will also provide a forum to discuss strategies for balancing decarbonization with energy security and economic growth. Beyond the domestic landscape, South Africa's energy transition will shape its role as a regional power supplier. With improved electricity infrastructure, the country could enhance its ability to export power to neighboring nations, further solidifying its position as a key energy player in Africa. As the country moves toward a more sustainable and investor-friendly energy framework, the upcoming months will be critical in determining whether South Africa can finally put the era of load shedding behind it. AEW: Invest in African Energy is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit for more information about this exciting event. Distributed by APO Group on behalf of African Energy Chamber.
