If you cook on gas - and almost every New Zealand kitchen does - two things are happening at once. Gas is getting harder to buy and more expensive, and the Government has just opened a $1.2 billion scheme to help businesses get off it. On top of that, your power bill went up this year even if you used less electricity.
None of this is your fault, and none of it is going away. This is a plain-English look at what is actually happening to gas and power in New Zealand, whether the new loan scheme is any use to a single-site cafe or takeaway (spoiler: for most of you, not directly), and the handful of practical moves worth making before the next contract renewal lands on your desk.
Key takeaways
- NZ gas reserves hit a record low. Proven-plus-probable (2P) reserves fell 23% to 731 petajoules as at 1 January 2026 - the lowest since records began 20 years ago (MBIE via Scoop, 2026).
- Contracted gas prices are up 50-200% in a year for medium-to-large users, more sharply than electricity (Commerce Commission gas DPP4 summary, 2025).
- Power bills rose 6.8% on average in the first half of 2026 (7.2% for small businesses that saw a change), and higher lines charges drove 54% of the rise (Electricity Authority, 2026).
- A $1.2bn Gas Transition Loan Guarantee Scheme opened on 31 July 2026 - but you must use at least 1,000 gigajoules of reticulated gas a year to qualify, which rules out most small independents (1News, 2026).
- If you are below the threshold, the practical path is EECA co-funding, efficiency, and phased switching - not a big loan.
What is actually happening to New Zealand gas?
Two separate problems are stacking up: there is less gas, and it costs more.
On supply, the numbers are stark. New Zealand's 2P gas reserves "declined 23% from last year to 731 petajoules (PJ)" as at 1 January 2026 - "the lowest level since recording began 20 years ago" (MBIE via Scoop, 2026). The biggest single drop was the Pohokura field, down 129 PJ, "partly linked to the underperformance of a well." Expected production for 2026 is just 85 PJ, 15% lower than forecast a year earlier.
That decline is showing up in what large users pay. The Commerce Commission's engagement with big gas customers found "their contracted gas prices have increased dramatically - ranging from 50-200% increases in the past year - more sharply than electricity" (Commerce Commission, 2025). Even the network side is creeping up: typical gas bills are expected to rise 1-3% from 1 October 2026 from pipeline charges alone (Commerce Commission, 2026).
For a kitchen running six wok burners, a chargrill, and hot water off gas, this is not an abstraction. It is the difference between a supply contract you barely noticed and one that suddenly reshapes your fixed costs - the same squeeze you already feel on staff wages and food costs.
Why did my power bill go up when I used less?
Because most of the increase is not about the electricity you burn - it is about the poles and wires that deliver it.
The Electricity Authority found power prices "increased on average by 6.8% in the first half of 2026." For businesses, "small business bills rose by 7.2%" (households were worse, up 8.7%), while "about 22% of households and 34% of small businesses experienced no change" (Electricity Authority, 2026). Crucially, "higher lines charges were the biggest driver of these increases, making up 54% of this year's increase."
Those lines charges are set to keep rising. The Commerce Commission's DPP4 path for electricity lines companies runs from 2025 to 2030, funding a long programme of network investment - which means this is a multi-year trend, not a one-off. You can shop your retailer, but you cannot shop the lines charge, so efficiency is the only lever fully in your control.
What is the Gas Transition Loan Guarantee Scheme?
It is a Government-backed lending scheme, opened on 31 July 2026, designed to help businesses fund the capital cost of moving off gas. The Crown does not lend the money - your bank does, with the Government guaranteeing most of the risk so the rate is lower.
Here is the scheme at a glance, from the announcement figures (1News, 2026; EECA, 2026):
| Feature | Detail |
|---|---|
| Total lending supported | Up to $1.2 billion |
| Crown guarantee | 80% of each supported loan |
| Eligibility threshold | At least 1,000 GJ/yr of reticulated gas |
| Maximum per borrower | $50 million |
| Required gas savings | At least 15%, while maintaining or growing output |
| Crown loss provision | $48 million set aside in Budget 2026 |
| Window / repayment | New loans until 30 June 2029; up to 10 years to repay |
| Participating banks | ANZ, ASB, BNZ, Kiwibank, Westpac |
If your business clears the threshold, the process is straightforward: you register interest directly with one of the participating banks and put together a project that delivers the required gas savings.
Do you actually qualify? (Most small kitchens do not)
Here is the honest part the headlines skip. The eligibility bar is that a business "must use reticulated natural gas and consume at least 1000 gigajoules a year" (1News, 2026).
One thousand gigajoules is a lot of gas. It is the sort of load a large-scale food manufacturer, a hotel, or a multi-site operation racks up - not a single cafe or suburban takeaway. A typical independent kitchen uses a fraction of that. So while the scheme is real money, for most owners reading this the practical answer is: you probably will not qualify directly, and that is fine. Do not build a plan around a loan you cannot get.
The one job worth doing here is finding out where you actually sit. Your annual gas consumption in gigajoules is on your supplier statements or available from your retailer. If you are anywhere near 1,000 GJ/yr - say you run several sites or a high-volume production kitchen - it is worth a conversation with your bank. If you are well below it, move straight to the section below.
What to do if you are below the threshold
You have three levers, and none of them require a $50 million loan.
1. Efficiency first. The cheapest gas is the gas you do not burn. Service your equipment, fix leaking seals and worn burners, and turn things off when they are not in service - a chargrill idling through a quiet afternoon is pure cost. This is the same discipline that protects your other overheads, from your lease and premises costs to food.
2. EECA co-funding. The Energy Efficiency and Conservation Authority runs a food and beverage sector pathway that offers co-funding and support for businesses looking to cut energy use and electrify (EECA, 2026). This is the channel most independents should actually explore - it is built for smaller operators, not just the big loan applicants.
3. Phase, do not flip. If you decide to move some cooking to electric, do it one piece at a time as gear reaches end of life, rather than ripping out a working kitchen. Get a switchboard capacity check early - the electrical upgrade is often the hidden cost, not the appliance.
Gas versus induction: the honest trade-off
This is where a lot of advice oversells. Induction is genuinely efficient - it transfers around 90% of its energy into the pan, against roughly 40-60% for gas (a general engineering benchmark, not an NZ-specific figure). But efficient is not the same as cheap to switch to.
The Commerce Commission's own engagement with gas users found that "electrification did not offer favourable economics for many businesses," and that "grid capacity limits require upgrades, often costly - this was a key barrier" (Commerce Commission, 2025). In plain terms: the appliance is only part of the bill, and your building's electrical capacity may need an expensive upgrade before an induction suite will even run.
There is a real chef's objection too. Wellington chef Martin Bosley has put the scale of it bluntly: "Ninety-five percent of restaurants are on gas. That's everything from its hot water through to cooking equipment" (NZ Herald, 2024). Switching is not a like-for-like swap; for a wok section especially, it changes how you cook.
The industry view is that operators are stuck in the middle. As one trade account put it, many "have been caught in an energy trap, facing erratic supply and surging bills before viable, cost-effective alternatives are in place" (Restaurant & Café, 2026). That is the honest position for most kitchens right now: watch it, plan for it, but do not panic-convert.
Your action list before the next renewal
- Find your annual gas use in gigajoules (on your supplier statement) and check it against the 1,000 GJ/yr threshold. Now you know if the loan scheme is even relevant.
- If you are near the threshold, register interest with your bank (ANZ, ASB, BNZ, Kiwibank or Westpac) before the 30 June 2029 window closes.
- If you are below it, contact EECA about the food and beverage pathway and its co-funding.
- Review your energy contracts - both gas and electricity - and diarise the renewal dates so a 50-200% quote never blindsides you.
- Get a switchboard capacity check if electrification is even a maybe, so you know the real cost before you commit.
- Tighten the fixed costs you can control now. Energy is largely outside your hands; the margin you lose to delivery-app commissions is not. Moving even a slice of orders onto your own online ordering channel keeps money that would otherwise vanish, which matters more when your power bill is climbing. A simple owned website and ordering page - the kind DineHere builds from a menu photo - is one of the few overhead levers you can pull this week.
Energy is going to stay expensive and a bit uncertain for a while. You cannot fix the gas market, but you can know your numbers, take the support that fits your size, and stop the leaks you can actually reach.
Frequently asked questions
Is New Zealand banning gas in restaurants?
No. There is no ban on gas cooking in restaurants. The pressure is coming from falling supply and rising prices, plus Government incentives to switch, rather than a legal prohibition.
How much has gas gone up for businesses?
Contracted gas prices rose 50-200% in the past year for medium-to-large users, according to the Commerce Commission - more sharply than electricity (Commerce Commission, 2025).
What is the Gas Transition Loan Guarantee Scheme?
A scheme, opened 31 July 2026, where banks lend money to help businesses move off gas, with the Crown guaranteeing 80% of each loan. It supports up to $1.2 billion in total lending (EECA, 2026).
Can my cafe get a gas transition loan?
Probably not directly. You must use at least 1,000 gigajoules of reticulated gas a year to qualify, which is far more than a typical single-site cafe or takeaway uses (1News, 2026).
What can small operators use instead of the loan?
EECA runs a food and beverage sector pathway with co-funding and support aimed at smaller businesses cutting energy use and electrifying (EECA, 2026).
Why did my power bill rise even though I used less electricity?
Because 54% of the first-half 2026 increase came from higher lines (network) charges, not the electricity itself, and lines charges are set to keep rising to 2030 (Electricity Authority, 2026).
Is induction actually cheaper to run than gas?
It is more efficient - around 90% of energy reaches the pan versus roughly 40-60% for gas - but the switching cost (appliances plus electrical upgrades) often outweighs the running saving, which is why many businesses found electrification did not stack up economically (Commerce Commission, 2025).
What is the hidden cost of switching to induction?
Usually the electrical upgrade. Your switchboard may not have the capacity to run an induction suite, and grid-capacity upgrades were flagged as a key, often costly barrier (Commerce Commission, 2025).
How long is the loan scheme open?
New scheme-supported loans are available until 30 June 2029, with up to 10 years to repay from the date the loan is issued (1News, 2026).
Should I switch off gas now?
For most kitchens, no rush. Watch your contracts, take efficiency and EECA support that fits your size, and phase any change as equipment reaches end of life rather than converting a working kitchen in one go.
