Toast Electric, Aotearoa-New Zealand’s first not-for-profit power company, opened its doors in Wellington on Thursday.
It is an initiative of a registered charity, the Sustainability Trust.
Toast’s aim is to reduce energy hardship.
Its fair energy manager, Phil Squire, says Toast is addressing a desperate need within the community.
“Energy hardship is a real big issue of our times, with lower incomes and high cost of energy, and poor housing quality.
“We at least think we’ve got a shot at making a difference.”
He is urging socially-minded people to switch and get their electricity from them.
They can do good with their energy spend and help support households struggling with the costs of energy and cold, damp homes, he says.
So can small commercial clients, churches and schools.
With profits from ‘regular’ customers being used to subsidise the electricity bills of those who struggle to pay, “People can make a difference,” Squire told CathNews.
He says initially, those in energy hardship will be referred to Toast by budgeting support agencies.
The not-for-profit power company guarantees they’ll pay less than they did. But the solution is more comprehensive than that, Squire says.
They will also get a home energy assessment to understand how much energy they need.
Squire told CathNews that Toast Electric emits lower carbon, creates local jobs, and keeps electricity profits in the New Zealand community rather than offshore.
It also provides energy-efficient assessments to all clients, he says. Over winter, prices will be capped to give customers in hardship certainty over their power bill.
Power will be priced “competitively” for regular customers who will also get a free home energy assessment.
The extra drawcard was the social benefit, Squire says.
“When folks sign up to Toast, any surpluses we make go back to our mission, instead of private owners, shareholders and highly paid execs.
“Our mission is to support households struggling with the costs of energy and cold damp homes.
“This includes providing lower power costs for households referred through partner budget advice agencies, in-depth home assessments and support, and lower fixed electricity costs in winter so whanau can heat more without blowing the budget.
“The electricity payments folks make for their power is not a donation. We just use any profits to help those in need via our Energy Wellbeing programme – the classic social enterprise model.”
Squire thinks five to ten per cent of a bill gets transferred to lower-income households for the benefits in Toast’s Energy Wellbeing programme.
A Toast pilot programme customer is positive about the new company.
“It’s actually really nice to think the profits are going to support other Kiwis that are going through financial hardship,” she says.
“There’s a lot of them out there at the moment.
“It’s not costing me any more to do that, and somebody else is benefiting that needs to be benefiting.”
Source
- CathNews interview
- RNZ
- Toast Electric