From 1 January 2019, the New Zealand Emissions Trading Scheme’s carbon unit surrender ratio will increase.
This is the last of three annual step-changes under the Climate Change Response (Removal of Transitional Measure) Amendment Act 2016 to remove the ‘one-for-two’ carbon unit subsidy that was introduced by the Government at the start of the Scheme. It means that the current 83% carbon unit surrender obligation will increase to a full (i.e. 100%) surrender obligation for all sectors, from 1 January 2019.
Nova Energy will increase the carbon charge component in our natural gas customers’ pricing associated with the new surrender ratio at the same time as this regulatory change.
Natural gas customer price changes*
Nova’s residential and business natural gas customers will see an increase of:
- 0.1024 cents per kilowatt hour (kWh), excluding GST and before any applicable prompt payment discount, for natural gas customers on Nova Energy’s prompt payment discount plans; and
- 0.0870 cents per kWh, excluding GST, for natural gas customers on Nova’s non-prompt payment discount plans.
For an average residential natural gas customer using 5,500 kWh of natural gas per year, this change will increase their annual bill by $4.79 or 0.7%.^
For an average commercial natural gas customer using 50,000 kWh of natural gas per year, this change will increase their annual bill by $43.50 or 1.4%.^
* The carbon charges applicable to Nova’s industrial natural gas customers are managed separately.
^ The effect of the change will vary depending on a customer’s natural gas use.
For more information on the New Zealand Emissions Trading Scheme please visit the Ministry for the Environment’s website. Information on the phase out of the one-for-two surrender ratio is available on the Ministry for the Environment’s website here.
Common questions and answers
When will I see these changes on my natural gas bill?
The changes take effect from 1 January 2019, so you will see your pricing change from your first bill after this date.
Why are these changes happening on 1 January 2019?
Nova has decided to increase the carbon charge component in our pricing on the same date the third and final phase of the changes in the Amendment Act come into effect.
We understand the impact price changes have on our customers and we do not make price change decisions lightly.
I am on a natural gas fixed term plan with Nova. Do these changes apply to me?
Yes. Nova’s fixed term plans allow certain pricing components (including carbon charges as a result of government or regulatory changes) to be adjusted in certain circumstances. In this instance Nova is increasing the carbon charge component of your natural gas bill on and from the date the third and final phase of the changes in the Climate Change Response (Removal of Transitional Measure) Amendment Act 2016 come into effect.