Gas prices are predicted to rise significantly – reports suggest now is the time to go electric.

Homeowners, landlords and developers may be locking future inhabitants into an expensive choice if they continue to opt for choices which require gas for heating, hot water and cooking. Several new reports released in 2023 suggest that the decreasing demand for gas due to decarbonisation will eventually lead to increasingly higher gas prices for residential users. Electric heating and cooking are already cheaper and better solutions for most households and should be the preferred choice.

Ernst & Young were commissioned by the Gas Industry Company Limited (GIC) to investigate the current and future supply and demand in the gas industry in New Zealand, releasing this report in December 2023 Gas Supply and Demand Study. The report outlined that a decrease in demand is projected to continue across all scenarios as the economy decarbonises and consumers switch to low- or zero-emissions fuels. This forecasted declining demand, creates a challenging environment for any investment in new natural gas supply. Results suggest that the estimated cost of gas will increase, due to a forecast increase in natural gas per-unit production costs as volumes decline.

Based on reporting by natural gas producers, New Zealand’s annual production from 2P Reserves is expected to peak at 170 PJ in 2024. It is then expected to start a sustained decline, falling below our total use in 2022 of 145 PJ by 2027, and decreasing to 77 PJ by 2032. The drop in natural gas reserves is not only because producers are less sure that they can economically extract the natural gas in their fields, but also because they believe there is less natural gas available in those fields. According to this report from the Ministry of Business, Innovation & Employment Energy in New Zealand 2023.

Rising gas prices are becoming a growing concern for many homeowners, prompting them to search for alternative options that are both cost-effective and environmentally friendly. While induction cooktops have emerged as the best alternative to traditional gas cooktops in the kitchen, another excellent option for reducing reliance on fossil fuels and decreasing power bills is the installation of an air source heat pump for hot water heating.

As more people recognise the environmental benefits and long-term cost savings of electrifying their homes, hot water heat pumps are gaining in popularity.  We know they’re better for the environment and can save you money in the longer term.

Find out more . . .