Fuel poverty, policy, and equity in New Zealand: The promise of prepayment metering

Abstract

Fuel poverty is a complex and pervasive policy problem, in part due to the difficulty of identifying households experiencing fuel poverty to target for remedial action. This paper explores the extent to which the use of prepayment metering for electricity can be used as a proxy for identifying fuel poor households. We hypothesised that as prepayment metering in New Zealand is typically used by low-income households, yet is a more expensive payment method; households using prepayment metering have constrained choices and are at higher risk of fuel poverty than the general population. To explore this question, we used information from multiphase mixed methods research on prepayment meter use, which included two postal surveys, complemented by data from an interview study, to explore three different methods of measuring fuel poverty. We conclude that as households using prepayment metering are experiencing greater levels of fuel poverty using all three measurements, prepayment metering can be used as a useful proxy for targeting remedial fuel poverty policy in New Zealand.