Frequently Asked questions

1. Why have you updated the Clean Energy Guide?
2. Do people care about where their power comes from?
3. What difference can I make by switching to a cleaner electricity supplier?
4. But don't some people say climate change isn't happening?
5. How does the ranking system work?
6. Why a thermometer?
7. What is distributed generation and why should people generate their own electricity?
8. What about energy efficiency and conservation?
9. Why do you only rate electricity suppliers that feed into the national grid?
10. Why don't you include parent or subsidiary companies?
11. Why is Genesis ranked worst?
12. Isn't this just an endorsement of Meridian Energy?
13. Couldn't Meridian renege on their policy commitments? Aren't other companies being penalised for being honest?
14. Isn't coal clean these days?
15. Isn't there a way to remove the carbon dioxide emissions from coal plants?
16. Aren't wind farms noisy and don't they spoil the landscape?
17. What about hydro - isn't it bad for the environment?
18. Nuclear power doesn't produce greenhouse gases - why don't we invest in that?
19. Don't we need fossil fuels as a back-up source of energy for when the wind doesn't blow or rain doesn't fall?
20. Can I tell if the electricity I use at home comes from a fossil fuel or renewable source?
21. The companies inherited some of their generation portfolios. Why do you reprimand them for something they had no say over?
22. What about companies that have tried to move forward with renewable development like wind and hydro but have faced opposition from local communities?
23. Will it cost more to switch to a clean, renewable energy supplier?
24. Will I loose my Vector dividend if I change power companies?
25. I can't change companies, or I've changed already - what else can I do?
26. Where can I get a printed guide from?

Concern about climate change is at an all time high. A Colmar Brunton poll in May 2007 found that 77 per cent of New Zealanders believe climate change is happening, and nine out of ten people believe it's our actions that are causing it. The latest Colmar Brunton Market Mood Monitor in March 2007 showed that a quarter (25%) have taken into consideration a company's contribution to global warming when deciding to do business with them. One in ten New Zealanders (12%) have actually stopped buying a company's products or service because it is contributing too much to global warming.

The 2005 Clean Energy Guide was hugely popular, with over 130,000 distributed around the country and thousands more using the website.

There have been a number of changes since the first Clean Energy Guide, including Mighty River Power's decision, under consumer pressure, to drop their proposal for Marsden B coal-fired power station.

We also decided to expand the guide in order to urge the electricity generators to improve their energy efficiency programmes and encourage them to offer options for consumers who generate their own renewable electricity on site to connect to the lines network and sell excess generation.

Yes!

Consumers around the world are more aware than ever that the choices we make have lasting effects on our environment.

And here in New Zealand, most people would prefer to have a clean, renewable electricity supplier. An independent TNS survey conducted in 2005 found 70% of people would prefer to purchase electricity that comes from clean, renewable generation sources such as wind or hydro.

In March 2007, Colmar Brunton released a Market Mood Monitor which revealed that 25% of New Zealanders have taken a company's contribution to global warming into consideration when deciding whether to do business with them. 12% of New Zealanders have actually stopped purchasing a company's products or services because of these companies' contributions to global warming.

This fits with early studies, such as one by the Energy Efficiency and Conservation Authority, which showed that the majority of New Zealanders prefer renewable energy.

A big difference - consumer pressure - the companies rely on you to keep going. This is why it's so important to express why you have made the switch. There was a big national public campaign against Mighty River Power’s plans to refire Marsden B power station on coal. This consumer pressure, along with submission writing, direct action and legal battles led to to Mighty River Power dropping their plans for Marsden B.

Also many companies have begun to change and focus more on renewable energy. For example, Contact cited feedback from their customers as one reason for now developing more renewable energy in the future.

So consumer pressure really works.

Remember, once you've made the switch your electricity company will probably contact you to ask you why. Make sure you take the most of this opportunity to push for renewable energy and action on climate change.

If you switch to a company that uses only renewable energy sources now and into the future, you know you are investing your money in clean energy. You can be part of the transition to a 100% renewable, clean energy future which protects the climate.

Climate change is happening and the evidence is clear.

The 2,500 top climate scientists who comprise the leading authority on climate change (The Intergovernmental Panel on Climate Change) have concluded with more than 90% certainty that climate change is real and caused by human activity. Keep in mind that the IPCC is inherently a very conservative and cautious body because it runs on consensus. Some have gone so far as to call its predictions and conclusions "understated".

There are a very small number of vocal fringe "climate skeptics", but the scientific majority agrees that climate change is happening and that humans are causing it, mainly through how we meet our energy needs. Scratch the surface of many of the "climate skeptics" and you'll find links and funding tracing back to the fossil fuel industry - the very cause of the climate change threat. Would you believe tobacco industry funded scientists telling you that there's no evidence that cigarettes are bad for your health?

More info at Exxon Secrets www.exxonsecrets.org

The question is no longer if climate change is happening, but what we can do to stop it. A recent poll suggests New Zealanders agree - 77% said they believe global warming is happening and that something must be done about it urgently.

Electricity companies were put into the following three categories:

Red Companies:
Currently burn coal, oil or gas for electricity - or plan to do so in the future.

Orange Companies:
Only use renewable energy sources for electricity, but have no policy to only invest in renewable sources in the future

Green Companies:
Only use renewable energy sources for electricity and have a policy to only invest in renewable sources in the future.

Companies are allocated scores on the basis of existing generation, proposed generation, their policy on future energy development, their energy efficiency programmes and whether they encourage households to generate their own renewable electricity through a distributed generation system.

A stronger weighting is placed on planned generation as these developments will determine our energy future. A greater penalty has been given to coal as this produces the most carbon dioxide of all the fossil fuels, therefore contributing the most to climate change. Positive emphasis is also placed on companies that have committed to only using renewable energy sources in the future.

The end result is a scale of ranking where a company that is higher up the thermometer is worse in terms of its contribution to climate change than the company listed below it.

Because the more carbon dioxide we produce from the burning of oil, coal and gas, the hotter the planet gets and the more the climate changes.

Click here for a more detailed explanation of the ranking system.

Distributed generation is small scale electricity generation (like solar photovoltaic panels on your house or office). Distributed generation usually uses renewable energy so it helps to lower our greenhouse gas emissions and tackle climate change.

Also an electricity system with more, smaller generation, distributed close to where the electricity is needed, is more stable and efficient. Energy losses in transmission - from transporting the electricity from one part of the country to another - are avoided. Currently, about 15%.of the electricity generated can be lost through transmission. There are also benefits in avoiding upgrades to transmission or lines networks.

In ranking the companies in the 2nd edition of the Clean Energy Guide, we have assessed whether they encourage households to generate their own renewable electricity by enabling those customers to connect to the local lines network and sell back any excess electricity they generate.

Energy efficiency and conservation (i.e. not using as much energy as we do now) is absolutely vital in developing a sustainable electricity system for New Zealand. Energy consumption is growing every year, which means we need to build more and more power plants to meet our insatiable appetite for electricity. New Zealand is simply going to run out of space and resources if this continues unchecked.

We not only have to make sure our electricity comes from clean renewable sources, but we also need to make sure we use electricity more smartly.
Kiwis are some of the most wasteful energy users on the planet. We have one of the lowest energy efficiency ratings of any country in the OECD. We've got a lot of catching up to do.

Energy efficiency and conservation isn't about lowering our standards of living. It's about getting more out of the electricity we use. It includes turning things off at the power point to shut off power-guzzling standby appliances, and many other simple steps and technologies such as home insulation that not only save electricity and our environment, but also save us money.

New Zealand urgently needs a long term, sustainable energy strategy that will see us phase out of fossil fuels and transition to a 100% renewable electricity system. Energy efficiency and conservation is a vital component of a sustainable energy future.

In this edition of our guide we have scored each company on the energy efficiency programmes they have in place to encourage customers to reduce their energy consumption. Click here for a break-down on how we rated each company on their energy efficiency programmes.

The Clean Energy Guide is designed to provide consumers with the information necessary to make decisions about how their electricity is generated. The Guide therefore only rates companies that supply electricity to the consumer electricity pool that reaches consumers' homes and businesses.

We have not been able to rate industrial on-site generators.

The Clean Energy Guide is a tool for consumers to help them chose a cleaner electricity company. So we are only concerned about looking at the activities of those companies that feed electricity into the national grid and from whom consumers can buy their electricity. The only exception is for retail companies that do not own any of their own generation. In those instances, the retailer was given the same ranking as the parent generator company.

Genesis owns and operates New Zealand's only coal fired power station at Huntly. This facility belches out millions of tonnes of carbon dioxide each year and other nasties like mercury, dioxin and arsenic. Huntly Power Station is the largest single source of carbon dioxide emissions in New Zealand.

Little more than a quarter of Genesis Energy's current generation capacity is from renewable energy. Most of its future generation plans are for gas. Gas is not as polluting as coal and oil, but still emits carbon dioxide - the main greenhouse gas that causes climate change.

Genesis has a range of energy efficiency projects in place, which we applaud, but could do more in this area.

Genesis offers payment for excess electricity that their customers generate, but they pay less than the retail price for this. They should pay at least the retail price.

Policy on energy development was an important factor in how we ranked each company. Unfortunately Genesis has not committed to only developing renewable energy in the future. This together with their existing fossil fuel generation, particularly coal use at Huntly and future fossil fuel plans, has put them at the top of the list of climate offenders.

We need to be embracing clean energy, which will lead us down a clean, renewable energy future where we are tackling climate change.

The Clean Energy Guide assesses companies on their relative impact on climate change only. It does not assess companies on other environmental issues, nor is it an endorsement of any company.

Meridian is the only company in New Zealand that currently uses only renewable sources like hydro and wind to generate electricity and is committed to using only renewable sources in the future. Meridian Energy is ranked as the cleanest energy company in terms of climate change. We did not assess the electricity companies on any other environmental issues.

Most companies take their policy commitments very seriously and they will be held accountable for them by the public - and Greenpeace - if they breach them.

A policy commitment to develop only renewable energy sends a very powerful message to the Government that Kiwis want clean energy and that industry wants to head in that direction too.

The Government listens a lot to industry. These types of policy commitments will help to push the Government into developing a long term sustainable energy strategy for New Zealand which will phase out fossil fuels and lead to a 100% clean renewable electricity system.

14. Isn't coal clean these days?

Yeah right. The coal industry misleadingly claims that it can now burn coal "cleanly". In fact, so-called "clean coal" methods just shift pollutants from one form of waste to another. Furthermore, methods of dealing with climate-changing carbon dioxide pollution won't be viable for 50 years, according to leading world experts (see below).

Coal is the dirtiest of all fossil fuels and one of the most polluting sources of energy. When burned, it emits 72% more carbon dioxide (the main cause of climate change) than gas.

Coal is a toxic cocktail and burning it releases a wide range of heavy metals like mercury, cadmium and lead, cancer-causing chemicals like dioxin, smog-forming nitrogen oxides, acid-forming sulphur pollution and fine particulates which pose a threat to human health.

It also leaves a trail of environmental destruction right back to the source. Coal mining damages forests and impacts river ecosystems through acid mine drainage and heavy metal contamination.

15. Isn't there a way to remove the carbon dioxide emissions from coal plants?

Again, this is one part research, ten parts wishful thinking and PR spin from the fossil fuel industry. Methods to capture and store carbon dioxide emissions (the main cause of climate change) have been under development for several years but are many decades away.

A recent report from the UN's scientific advisory body on climate change, the Intergovernmental Panel on Climate Change (IPCC), showed just how limited this approach is in combating climate change.

The report showed there are still far too many questions about environmental risk, safety and costs for it to be deployed on a scale that would make it economically viable.

It found that ways to capture and store carbon from the electricity sector would likely only be deployed at a large scale in the second half of this century, i.e. 50 years from now.

These methods will simply not be ready in time to provide us with the huge short term emissions cuts that we need in order to avoid catastrophic climate change.
Scientists have warned that we have approximately ten years to act on climate change to avoid disaster. Every dollar invested in carbon capture and storage research is a wasted dollar if it diverts money away from renewable energy and energy efficiency.

16. Aren't wind farms noisy and don't they spoil the landscape?

Modern turbines are actually very quiet. Thanks to advances in wind turbine technology, well-designed, well-sited turbines can be acceptable for people living just a few hundred metres away.

At these distances, any noise they do make is usually drowned out by the natural noise of the wind itself in the trees and vegetation. To protect nearby residents from any undue disturbance, proposals to install wind turbines are required to meet strict noise standards.

The question of appearance is highly subjective. Being visible is not necessarily the same as being intrusive. While some people express concern about the effect wind turbines have on the beauty of our landscape, others see them as elegant and beautiful, or symbols of a better, less polluted future.

The landscape we inhabit is largely human-made and it evolves over time. In comparison to other energy developments like nuclear, coal and gas power stations, or open cast mining, wind farms have relatively little visual impact. Nevertheless, National Parks or areas of high conservation value are not appropriate spots for wind farms. And they don't need to be placed there. According to EECA's 2001 study on the wind energy potential in New Zealand, we could meet our energy needs three times over on just 1% of all our land.

Far from being a waste of land, only 3% of the land used in a wind farm is actually taken up by turbines and access roads. That leaves the remaining 97% of the land free for farming or grazing, as usual. Thus wind farms result in rural land being used more productively.

If we don't switch to cleaner forms of energy, climate change will severely and irrevocably alter much of our landscape as well as the animal and plant life it contains.

Not everywhere is a good place for a wind farm - for example they shouldn't be placed in national parks or in migratory bird pathways. It is the role of the Resource Management Act to sort the good projects from the bad, by assessing and putting in place steps to mitigate any local impacts, and weighing those impacts up against the need to address climate change. Greenpeace supports local people getting engaged in the resource consent process to get their views heard.

Check out www.yes2wind.co.nz for more information on wind energy.

17. What about hydro - isn't it bad for the environment?

Large-scale hydro developments can be very damaging to the environment, causing severe impacts to river systems and flooding forests and other ecosystems. Greenpeace does not support these kinds of large scale, damaging hydro schemes. We opposed Project Aqua on this basis.

However, we believe there is potential for small to medium scale developments, provided they have a minimal impact and are well managed with tight environmental controls. These proposals have to be considered on a case by case basis.

The Clean Energy Guide ranks companies according to their impact and contribution to climate change through their existing generation, proposed generation, their policy on future energy development, their energy efficiency programmes and whether they whether they encourage households to generate their own renewable electricity. It is not an assessment of full environmental sustainability for each company and therefore does not include other environmental impacts of each company's activities, such as hydro development or their business practices.

The guide is specifically about climate change, the biggest environmental threat the world is facing.

18. Nuclear power doesn't produce greenhouse gases - why don't we invest in that?

Nuclear energy is often cited as a solution to climate change, but it would just result in swapping one environmental nightmare for another. Nuclear is never safe. The deadly legacy of nuclear energy will be left for future generations to deal with in the form of radioactive waste that remains dangerous for hundreds of thousands of years.

There is still no solution to the nuclear waste threat.

Every step of the nuclear cycle is dangerous and polluting. Everyone is all too familiar with the Chernobyl accident that affected thousands of people and continues to do so today. In 2005 there was an accident at the Sellafield nuclear reprocessing plant in the United Kingdom and the area that the waste leaked into became so highly radioactive that no human could enter. It is so dangerous that new robots and remotely activated technologies have to be developed just to repair the damage.

Nuclear power also provides the ability to produce nuclear weapons. It can lead to nuclear proliferation and increases the global security threat.

Do New Zealanders really want to be taking risks like this with their country when there are clean viable alternatives like wind and other renewable energy sources?
Asides from these shocking threats, the costs of nuclear power alone are enough to turn anyone off. New Zealand does not have the infrastructure or expertise to deal with nuclear energy and the smallest commercially viable nuclear reactor is just too big to fit into our electricity system.

No private investors are seriously considering investing in nuclear power without the guarantee from a public financial institution - that means taxpayers' money is needed to prop up the nuclear industry.

Of the world's 400 nuclear power plants and installations, only one or two have been decommissioned and the cost was four times what was projected. This is an extremely expensive process which, today, falls on Governments who are unlikely to pick up the tab.

Then there's the sticky question of liability. International treaties allow countries to limit company liability to as low as $10 million to $300 million in the case of a serious nuclear accident. But this would be a fraction of the $800 billion or more such an accident could cost. Would business in New Zealand expect the taxpayer to pick up the tab? The UK, France and Japan have spent years trying to get out of negotiating any liability regime for the South Pacific in the event of an accident with nuclear waste shipments.

Meanwhile, globally, the costs of renewable energy are falling while nuclear costs are rising. This difference would be even more marked if the global $1,400 billion spent on subsidising the nuclear industry had been spent on renewables research and development. Wind power is far cheaper than nukes - for the same investment, wind generates twice as much electricity and offers twice as many jobs.

New Zealand led the world in taking a nuclear free stand and we can lead the world again in embracing clean energy to tackle climate change.

19. Don't we need fossil fuels as a back-up source of energy for when the wind doesn't blow or rain doesn't fall?

At the moment New Zealanders get 60% of our electricity from renewable sources and fossil fuels make up the rest.

But what we need is a transition to a sustainable electricity system that uses localised generation close to where it's used. This is more efficient than transmitting electricity around the country. We need to employ a wide range of renewable sources including wind, biomass and geothermal. And we need increased energy efficiency and energy conservation so we don't need to generate so much electricity in the first place.

Greenpeace is calling on the Government to agree on a long term, sustainable energy strategy. This would map out the pathway to a clean energy future, putting in place the steps (like those above) to get us there.

New Zealand led the world in being nuclear free. We can lead the world again in being 100% renewable.

20. Can I tell if the electricity I use at home comes from a fossil fuel or renewable source?

All electricity generated by companies goes into a central pool or electricity market and customers then buy electricity from this general pool through electricity retailers.

It works a bit like a swimming pool. Generators are all pumping water (electricity) into one big pool, and consumers are drawing out water (electricity) all around the pool edge. So there is no way of "tagging electrons" to say that this unit of electricity was generated from this particular source. It is all mixed in together.

The reason it is so important to change electricity companies is that this campaign is not about tagging individual electrons. It's a bigger picture campaign about where your money goes and what kind of energy future you want.

If you buy electricity from a company that currently uses or plans to use fossil fuels then your money is directly supporting dirty energy, leading to a dirty energy future that contributes to climate change. That company may also be sending messages to the Government that we need fossil fuels like coal in the future.

To use the swimming pool analogy again, some electricity companies are using the money you pay them to pump "dirty" water into the pool. By switching away from these companies, you are taking a step towards ensuring only clean water is pumped into the pool.

If you switch to a company that uses only renewable energy sources now and into the future, you know you are investing your money in clean energy. You can be part of the transition to a 100% renewable, clean energy future which protects the climate.

21. The companies inherited some of their generation portfolios. Why do you reprimand them for something they had no say over?

Companies inherited much of their generation from the break up of the Electricity Corporation of New Zealand (ECNZ) and therefore didn't have much control over what ended up in their original generation portfolio.

This is one reason why we placed a stronger weighting on future plans and policies than on current generation. Companies can more easily make and change decisions on future plans. Once facilities are built, it is a harder choice to shut them down.

However all companies have the same opportunity to make good choices now.

22. What about companies that have tried to move forward with renewable development like wind and hydro but have faced opposition from local communities?

It is important that communities support good local renewable energy projects like wind farms and get involved to help improve them. The Yes2Wind website provides lots of information for people to help them to do this.

However, not every renewable energy project is a good idea. For example, Greenpeace opposed Meridian's big hydro scheme, Project Aqua, on the Waitaki River in the South Island, because of the adverse impact that it would have on the environment. We encourage people to get involved in the Resource Consent process for any project they're concerned about in order to have their views heard. In this way, the Resource Management Act sorts the good projects from the bad.

It's also important that we reduce our own energy use, especially in our homes, to stop the rising demand for new energy generation. This will also save us money.

23. Will it cost more to switch to a clean, renewable energy supplier?

In some places you could save money by making the switch. In other areas it could cost as little as one cup of coffee a week to have a clean, renewable energy supplier. Check the pricing plan for the cleanest option in your area. Prices can differ depending on location. The cost per kilowatt also differs depending on how much electricity you use and when you use it, so make sure that you choose the best pricing plan for your household.

The cost is at the most small. Think of the contribution your household could make to cutting pollution and reducing the amount of climate change-causing gases which are released into our environment.

Remember too that you can reduce your bills by being more efficient with your energy use. Click here for tips on reducing energy usage in your home.

The TNS independent survey results showed clearly that people are willing to put their money where their principles are when it comes to choosing clean energy. 66% of people surveyed said they would be willing to pay more for clean, renewable electricity.

Consumer Magazine has a useful comparative index of the different pricing plans available at www.powerswitch.org.nz

24. Will I loose my Vector dividend if I change power companies?

No. According to the Auckland Energy Consumer Trust, if you currently receive a dividend through Vector you will continue to receive this whoever your energy company is. Eligibility for the dividend is determined by where you live. If you are in credit on your power bill when you change companies a last meter reading will be taken and your old power company will pay you any remaining credit by cheque or direct credit.

25. I can't change companies, or I've changed already - what else can I do?

There are many steps you can take to help the climate. Click here for a list of things you can do to help.

New Zealanders produce an average 8100kg of carbon dioxide emissions every year, over twice the global average. But by following some simple suggestions you can help save the climate and save yourself some money too.

• Switch off lights and appliances when you're not using them.
• Install energy efficient light globes and high energy efficiency rated appliances.
• Make sure your house is properly insulated - it will reduce your need for heaters and reduce your electricity consumption.
• Install a solar hot water system. Up to 45% of a household's electricity bill is spent on hot water. What a waste when it could be heated for free by the sun's rays.
• Ride your bike to work, walk or take public transport.
• Write to your local MP and ask them what they are doing to help tackle climate change, like putting a price on greenhouse pollution and policies to support renewable energy, energy efficiency and public transport.
• Tell five friends about climate change and the clean energy guide. Encourage them to take some of these simple steps too.

26. Where can I get a printed guide from?

It's Free! The Clean Energy Guide is available in libraries, cafes and other stores throughout New Zealand and from our fundraisers on the street and going door to door around the country. You can also contact Greenpeace at energyguide@greenpeace.org.nz or phone 0800 22 33 44 to order a hardcopy of the guide.

If you own a shop or a café and are interested in stocking the Clean Energy Guide we'll get some out to you along with a handy dispenser and posters advertising that you have the Guide available in-store.