2476 NEW ZEALAND GAZETTE, No. 92 4 JUNE 2008

Electricity efficiency

33. Maximising the contribution of cost-effective energy efficiency and conservation is
    a key means to achieving the vision set out in the NZES for a reliable, resilient
    system delivering New Zealand sustainable, low emissions energy services. A
    principle of the NZES is that investment in energy efficiency measures should occur
    where this is cheaper than the long-term costs of building extra generation and
    network capacity, including environmental costs. Energy efficiency measures are
    described in more detail in the NZEECS which identifies the main measures, policy
    instruments and responsibility for implementation.

34. Electricity efficiency and demand side management help reduce demand for
    electricity, thereby reducing pressure on prices, scarce resources and the
    environment. The Commission should ensure that it gives full consideration to
    the contribution of the demand side as well as the supply side in meeting the
    Government’s electricity objectives.

35. As part of its research and information activities, the Commission, in conjunction
    with EECA, has undertaken a comprehensive review of the potential of electricity
    efficiency to contribute cost-effectively to achievement of the Government’s
    electricity objectives, including estimating the level of investment required to realise
    this potential. This work should continue.

36. A number of Government agencies have responsibilities that support improved
    energy efficiency in the stationary energy demand sector. These include EECA,
    the Commission, MED, MfE, MAF, DBH and Housing New Zealand Corporation. It
    is the government’s intention that EECA be the primary service delivery agency for
    energy efficiency programmes in this sector.

37. EECA and the Commission have a common objective: to promote the use of
    electricity in an efficient and environmentally sustainable manner. In undertaking
    its electricity efficiency activities, the Commission should work closely with EECA.
    It is important that the Commission’s activities complement the work of EECA and
    that duplication of effort is avoided. Through its membership of the Senior Energy
    Officials Group, the Commission will work with the group to develop priority
    energy efficiency programmes and will reflect this in its work programme to
    promote the efficient use of electricity.

38. EECA has expertise in the management of energy efficiency programmes. The
    Commission should draw on this expertise in designing, administering and
    delivering its programmes, consistent with the principles of paragraph 33,
    and good procurement practice. This will promote concentration of expertise and
    coordination of effort. As EECA builds its capability in a wider range of areas,
    EECA will work as the delivery agent for more actions developed and funded by
    the Commission.

39. All purchases by the Commission of services from EECA should be formalised in
    contracts which should be made available on the Commission’s website.

40. The Government notes that the two agencies have developed a Memorandum of
    Understanding outlining how they will work together. The Government requests
    that this memorandum be reviewed to clarify the respective roles of each agency
    and to reflect the arrangements above.