Can you choose a ‘greener’ power company?

When we make buying decisions, there’s usually a more environmentally friendly option available. Consumer NZ senior investigative writer Chris Schulz recently set out to find out whether that’s possible when we’re choosing which company to get our power from. 

The short answer is no. All the power New Zealanders use comes from the National Grid. So no matter what company you choose – the product is the same.  

New Zealand is among the best in the world when it comes to renewable energy sources – about 90% of our power comes from self-sustaining sources such as wind, water, the sun and geothermal energy. The rest comes from non-renewable sources such as gas and coal. 

Power is more likely to come from gas and coal stations at peaks times when demand is high, for example in the morning when everyone gets going for the day and in the evening when they get home from work.  

“The power that you’re using in your house comes from the National Grid and is whatever is being generated at that time,” Chris says.  

“Even if a power company has a fleet of power stations that may be 100% renewable, at peak times it’s likely some of the power its customers consume has been generated by Huntly Power Station – a gas and coal-burning plant.” 

So while you might see power companies market themselves as greener than others, it’s impossible to choose one that will only supply from renewable sources. 

Chris says that to compensate for the emissions, power companies can buy carbon offset credits or Renewable Energy Certificates. “But debate rages over whether these reliably reduce global emissions.” 

With that knowledge, you can be more critical when of the green claims power companies make in their marketing.  

In 2019, the Advertising Standards Authority made Meridian change ads it was running on YouTube, Facebook and TV that said, “doing your bit for the environment just got easier” and “switch to Meridian for power that doesn’t cost the Earth”. 

How to change your power use to be greener 

While you can’t affect how green the power coming through the sockets is at your house, there is something you can do to use power in a greener way. 

“If you can reduce your demand for power at peak times, it’s less likely the power coming to your house will be generated at the Huntly plant,” Chris says.  

You could also be rewarded with a lower power bill for changing your habits if you sign up to a time-of-use power plan. Most power companies now offer these, and they usually give you cheaper or free power later at night. Some also offer cheaper or free power in the middle of the day or on the weekend.  

Check out our article on how to make the most of time-of-use power plans.