ASB Survey Finds Energy Costs Second-Largest Concern for NZ Businesses
ASB Bank reports that energy costs are the second-largest concern for New Zealand businesses, prompting the launch of a building efficiency program with Tether.
An ASB Bank survey of 406 business leaders reveals that energy costs and supply stability are now the second-largest concern for New Zealand businesses, trailing only general economic uncertainty. Approximately 73 percent of respondents expressed concern over energy costs, with fuel prices, electricity, and network charges cited as primary worries. About 70 percent of businesses reported higher energy costs than two years ago.
ASB Bank and its Executive General Manager of Corporate Banking, Jonathan Oram, warned of a significant vulnerability in energy resilience. While 64 percent of businesses believe they are well-equipped for power outages, only 37 percent expect to operate for more than three days during a primary energy source failure. Furthermore, 28 percent of those identifying energy as a risk lack a mitigation plan.
These pressures have forced businesses to take drastic measures: 54 percent are cutting costs, 42 percent are raising prices, and 19 percent are reducing staff, production, or working hours. Oram urged firms to treat energy as a strategic issue rather than an operational cost, noting that adopting solar power, battery storage, and electric vehicles could reduce costs by up to 20 percent.
To address these challenges, ASB Bank partnered with building performance company Tether to launch Better Buildings. The program aims to help tenants improve efficiency and sustainability while simplifying access to funding and advice. ASB is also encouraging the use of energy consultants and the government's gas transition loan guarantee scheme to help firms move away from declining domestic gas reserves.
