Go with gas and add up the savings

READY SUPPLY: Gas supplies are expected to be plentiful for the next 20-30 years.

Natural gas is quickly becoming a popular alternative to electricity for space heating, water heating and cooking in North Island homes.

The Gas Association of New Zealand says about three quarters of the new homes being built in the North Island are installing natural gas for heating, water heating and cooking, and there is a growing trend for gas to be installed in existing homes.

The Association's national manager, Stephen Parker, says home owners with access to the reticulated gas network can save money by using gas for as many services as possible.

"Using gas for water and home heating can cost less than using electricity alone, even though that means paying two fixed line charges," he says.

"The price advantage only occurs when using gas for both water and home heating. The more energy used in a home, the greater the potential savings are by using gas."

His comments are based on a report by the Consumers' Institute last year, which compared the costs of using gas and electricity. The report found that home owners in Auckland, Hamilton and Wellington will save money if they use gas for as many services as possible.

A later report by Consumer magazine also found that where reticulated natural gas is available, the running cost of flued gas heaters is less than plug-in electric heaters, including oil column heaters, fan heaters, convection and radiation heaters.

While gas is the heating fuel of choice for the majority of new home owners, it is also becoming increasingly popular for retro-fitting in existing homes.

Vector Limited's business manager for gas, Georg Neudecker, says it is virtually impossible to make a conclusive comparison between gas and electricity for home heating and cooking because of the wide range of options and features.

"There are no directly equivalent systems between gas and electricity," he says.

"An individual has to make the choice about how effectively and efficiently they want to heat their home and what benefits they want.

"Generally, gas appliances are more expensive, but purely from a health perspective and an efficiency perspective, there's no competition for gas."

He says the benefits of gas over other forms of heating are the, health benefits, efficiency, running costs and lifestyle. The decision is pretty much a lifestyle choice, based on the eco-friendliness and efficiency consciousness of the individual.

"All the studies and analysis show very clearly that it is more efficient to use gas as a direct source of energy," he says.

"There are some examples that show that it is 2.8 times more efficient to boil a kettle of water using gas, than it is to use electricity generated from gas."

Natural gas creates the least greenhouse gas emissions of any of the fossil fuels available, so it contributes greatly to New Zealand's energy efficiency.

Neudecker says natural gas is not only more efficient and effective as a source of energy for heating, but it's also healthier because the heaters are either flued or have been engineered to dehumidify as well as heat.

"The health advantage is a dry home, which gas central heating does very very well because the process it uses absorbs moisture out of all the material-type products - chairs, couches, carpets, curtains, and so on - and is processed to generate heat," he says. "That, in very simplified, layman's language, is how gas central heating works." 

Neudecker says an enormous amount of money has gone into research and development globally to produce appliances than run very effectively and safely on natural gas.

The modern gas-powered appliances such as heaters are technologically very advanced, and have a host of smart features such as remote control, a high degree of automation and are programmable.

But consumers need to be aware that they get the technology and efficiency they pay for.

"There are many things to consider in making a decision about gas appliances," Neudecker says, "so it's worthwhile and really important that consumers recognise the value of getting quality advice.

"That can be from our Pure Energy channel partners - these are stores that are accredited by us - or from other gas specialist outlets.

"Pure Energy channel partner stores are a one-stop shop where you can get your gas appliances and connection arranged all in the one spot, and because they are accredited by Vector the advice is good. We make sure they are skilled, trained, competent people and businesses - if they're not, then they don't get our accreditation."

Everyone in the gas industry is keen to put to rest one common misconception, and that is that we are running out of gas.

Stephen Parker of the Gas Association says reports of the depletion of the huge Maui field have led to the mistaken perception in the minds of consumers and the news media about the availability of natural gas in the future.

But he says there is plenty of gas for consumers - they currently use only three per cent of the total gas consumed in this country - from other wells such as Kapuni, and new wells are currently in development at Pohokura and Kupe. There is confident speculation about the result of other recent explorations with indications that some fields, such as the Kupe field, have significant long term potential.

The Energy Efficiency and Conservation Authority (EECA) has calculated that we have enough reserves to take care of home supply needs for the next 20 to 30 years. And it points out that new, undeveloped gas fields continue to be found and explored for future use.

But Neudecker says the biggest indication of Vector's faith in the future of gas is that the company, which already owns and manages the second largest gas network in New Zealand, has just boughta majority share in NGC, one of the largest gas suppliers in the country.