Hon Gerry Brownlee
Minister of Energy and Resources

15 September 2010 Media Statement

Quake claims to cover new, efficient heating

Cantabrians whose chimneys have been significantly damaged by the recent earthquake will be able to replace their old log burners or open fires with a new, efficient heater and the cost will be covered under their claim to the Earthquake Commission, Minister of Energy and Resources Gerry Brownlee announced today.

“Our first priority is to help people get their houses back to normal and ensure they have the basics they need, including heating,” Mr Brownlee said.

“But we have an opportunity here to fix old, inefficient heaters that contribute to Christchurch’s air quality issues, so we are offering those affected families a new, efficient heater and covering the cost through the Earthquake Commission.

“It’s more cost effective in most cases to decommission or remove a damaged chimney and install an efficient heater than it is to repair or rebuild it. And it is a bonus for the people of Canterbury if we can actually improve houses in the clean up process.

“This is a voluntary programme – homeowners are entitled to have their chimneys fixed if they don’t wish to participate in the scheme – however I expect it will prove popular with many Cantabrians who’ve suffered chimney damage in the earthquake,” Mr Brownlee said.

ENDS

Questions and answers

When can people apply for a heater?

EECA will begin calling customers who have already lodged claims with EQC from Monday 27 September. Homeowners must lodge a claim with EQC first in order to take part in the scheme.

How will it work?

Anyone who has lodged a claim with EQC and has indicated they have a damaged chimney, but no other damage, will be contacted by EECA to see if they want to opt into the scheme.

For claimants with more than chimney damage alone, their EQC inspector can refer them to EECA to apply for a heater if they want to opt into the scheme.

A registered builder will then come and assess the property. If the chimney is damaged, then the homeowner has the choice to go ahead and get the chimney decommissioned and a new heater installed.

What is an efficient heater?

It’s a heating appliance that produces little or no air pollution, and is efficient to run. There are a variety of clean heating systems to choose from including:

• 4-Star AGA-rated flued gas heaters
• Approved solid fuel wood burners
• Approved wood pellet burners
• ENERGY STAR® qualified heat pumps

Where can people find out more?

Some details are still being finalised, but affected homeowners can visit www.eeca.govt.nz for more details and regular updates.

How many heaters are you expecting to put in?

About 15,000 of the approximately 53,000 claims to EQC claims to date involve damaged chimneys or open fires and we expect a high level of participation from this group.

Who will actually do the work?

Details are being finalised, but EECA is working with qualified tradespeople, including builders and qualified heating installers, who will be required to register to take part in the scheme.

EECA will manage the claim and will assign houses to pre-approved providers to make it easier for the homeowner.

If the chimney was not used, will the home still qualify for a new heater?

Yes, if it is in functional condition If it is not in use now, but could be used again in the future, there is still value in taking it out and replacing it with a better alternative.

How badly damaged does the chimney need to be to qualify?

Any damage that means the chimney would need to be replaced or significantly repaired.

How much will it cost per house?

Costs are covered under the EQC (with the usual excess payment rules). Costs will vary depending on the amount of damage, the heater chosen and the ease of installation. The estimated cost of repairing or replacing a chimney is around $8,000. We are working on an average cost of around $7,000 to replace with an efficient heater.

What if a house has more than one chimney – can they get more than one heater?

This would be determined in the assessment phase. If it is a bigger property and two heaters are used, then yes, you should qualify.

Do you need a building consent for a new efficient heater?

Some installations will require a building consent. The builder assessing the home can advise on this. All consents will follow the ‘fast-track’ process being developed by the government.

If people all choose heat pumps, will a big mass move to heat pumps put pressure on the electricity system?

We have talked to both of Christchurch’s lines companies – Orion and Mainpower – and they do not anticipate any problems.

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