The Costs of Extreme Weather on Businesses

The Costs of Extreme Weather on Businesses

New Zealand has experienced its fair share of extreme. However, as we continue to slide into a time of uncertainty, understanding the impacts of severe weather on businesses’ financials is critical if there is hope for continuity.

We know the impacts of harsh weather conditions on our personal, daily lives, but what effect does it have on the commercial sector?

Climate change

The main culprit of extreme weather is none other than climate change itself. We’ve all learned how devastating the effects will be for future generations if we don’t act quickly. However, if all the David Attenborough documentaries have taught us anything, it’s that everything is connected. One small change, one extra hot day or extra cold, can have a domino effect on our lives.

From freezing weather in Texas to mass fires in Australia, extreme weather brought on by climate change is felt around the globe. While we have all recognised the strain it puts on the Earth; it’s also important to understand the pressures it puts on energy infrastructures and what that means for everyday businesses.

Environmental issues people in New Zealand believe are a concern
Figure 1: Environmental issues people in New Zealand believe are a concern (, 2018).

What happens when there’s severe weather?

The bottom line is power grids aren’t built to withstand climate change effects. When extreme weather hits, whether it be hot or cold, it puts increased demand on our electricity. Air conditioners get cranked up, and heat pumps are left on for longer.

While power grids are trying to meet higher demands, generation facilities also struggle in severe weather conditions. Low lake levels and gas constraints can impact supply. Heatwaves, heavy rain, and lightning strikes can lead to power outages and cause spikes in wholesale spot pricing resulting in significant cost increases to businesses.

Severe weather having devastating effects on communities is a frequent topic on the news, even for New Zealand. Most recently, we’ve seen extreme flooding on the West Coast and mid-Canterbury, then tornados in Auckland, forcing thousands out of their homes and offices.

Extreme events such as these can cause widespread power outages, tree branches crashing down onto wires or flooded substations can lead to emergency powercuts for entire business parks.

What does this mean for businesses?

The impacts of these weather conditions on businesses range from unprecedently high energy bills to severe disruptions of day-to-day operations. With the added pressures of a worldwide pandemic and more people moving to work from home, there is even more need for energy providers to deliver.

Floods and dry weather have the ability to take out critical electricity networks in New Zealand. Currently, plan b is to burn coal to meet energy demands, which only pumps out more greenhouse gases. New Zealand is burning more coal than ever and it’s costing businesses a fortune.

Move towards sustainability

As extreme weather conditions jeopardise the financial positions of businesses across New Zealand, there is a pressing need to find more sustainable avenues that don’t compromise businesses’ energy costs.

Clean energy resources, like solar panels, which rely on natural light to produce sustainable energy to power commercial and residential properties, are one solution. Solar panels don’t deplete the Earth’s resources, and with the addition of batteries can even store any extra generated energy, so nothing gets wasted.

In addition, having an experienced and knowledgeable energy broker on your side will help you navigate through the variable landscape of the energy sector.


Extreme weather conditions triggered by climate change mean more significant financial impacts for businesses, something which is likely to become more of an issue.

However, the experts at Saveawatt have designed a model that leverages the lowest possible prices for electricity and gas, in which a free rooftop solar solution can also be integrated. We have a thorough understanding of the energy market and how to negotiate the lowest possible prices for our clients even in the face of harsh weather conditions.

We also proudly value the health of our environment. We are dedicated to utilising sources that produce clean energy without compromising cost for our clients.

Get in touch to book your free 15 minute stragetgy session – Discover how to reduce your carbon footprint and save on energy costs today!

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