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The author’s son ready to charge the electric vehicle. Photo: Gareth Shute
The author’s son ready to charge the electric vehicle. Photo: Gareth Shute

BusinessFebruary 20, 2018

What it’s really like to own an electric car

The author’s son ready to charge the electric vehicle. Photo: Gareth Shute
The author’s son ready to charge the electric vehicle. Photo: Gareth Shute

You plug in your phone at night, why not the car as well? Gareth Shute describes the joys (and dramas) of being an EV owner.

We were just coming down the hill to Piha when I realised our car wouldn’t have enough power to get back to the city. There’d been 100-kilometres on the clock when we started, but I hadn’t taken into account the hills and the weather.

It was a cold, foggy night and as soon as I’d turned on the AC to clear the windscreen, the car’s estimated range dropped by 15km. I’d rolled down my window instead and had driven along the twisting Waitakere roads with frosty wafts of air curling around my neck. But the gradient of the road had risen steadily upward, sucking away our precious range at an alarming rate.

By the time we got to the party we were attending at the Piha Bowling Club, there was 45km on the clock and the distance back to Auckland was 40km. I felt a nervous twinge in my chest – I didn’t think we could make it. This is what they call “range anxiety” and has been the bugbear of the early models of electric vehicles (EVs). Current technology means it’s still difficult to cram enough power into the batteries for long distance driving. Manufacturers have tried to address the issue with long arrays of batteries held under the chassis – if you look at most EVs, you’ll notice they’re longer than regular cars – but to little avail.

In the end, I solved my problem in Piha by begging a local campsite owner to let me plug the car in for a couple of hours. In retrospect, I shouldn’t have bothered. Another quirk of electric cars is that they recharge when braking or drifting downhill (“regenerative braking”). The gradual rise of the Waitakeres toward the west now counted in our favour on the way back; as we cruised back down toward Auckland, the range on the counter began to rise.

Charging in Te Kauwhata. Photo: Gareth Shute

This episode took place back in late-2016 when we first purchased a Nissan Leaf 2011 (cost: NZ$17k; maximum range: 130km). Back then, there were only around 1000 pure electric vehicles on the road and I found myself waving whenever I passed another on the street. For a few months, we kept our old petrol car as backup, but the only time we used it was to check the engine was still running, so we finally sold it.

The first shock of owning an electric car is finding that when you turn the car on, it makes no sound whatsoever. Even when driving, electric cars only emit the softest hum. At one point, I drove up behind a group of teenage boys walking down the centre of a quiet suburban street and had to roll down the window to call out for them to move aside.

After the Piha experience I became more bold. I did the round trip to Splore last summer (topping up at Takanini) and, a month later, we holidayed in Maraetai where we charged up by running the cord out the kitchen window (we have a power lead that plugs directly into a regular wall socket, though charging takes much longer).

The furthest we’ve made it is Hamilton, which required stopping at WEL Networks’  Te Kauwhata fast charger on the way. It’s great that lines companies are now providing free charging points, though they often put them wherever their nearest substation happens to be. In the case of Te Kauwhata, that means being stuck in the midst of the rural countryside for 20 minutes without much to do.

The company setting up charging stations outside of the main centres is Chargenet, who want to create an electric highway across the country. There is also an opportunity for small businesses like B&Bs and cafes to appeal to EV owners by offering onsite charging then listing themselves on the Plugshare app.

In Newmarket. Photo: Supplied

Range anxiety will soon be a thing of the past. The 2018 model of the Nissan Leaf can go 240km on a full battery, and Tesla’s newly released mid-priced model (US$30k) will have 350km of range and the option to expand this to 500km. Once cars with this capacity become available as secondhand imports in three to five years’ time the appeal of electric cars will become overwhelming. Last year a million EVs sold worldwide, but this is estimated to double in 2018 and China has announced the goal of having a million EVs on its roads by 2020.

Government energy efficiency agency EECA have calculated that driving an electric car is equivalent to paying 30c per litre for petrol (i.e., 15% the cost of running a similar sized petrol car at current petrol prices). Why would you spend $60 at a petrol station, when you can charge at home for $9? This is especially true if you sign up to an electricity company with cheaper night rates or one which charges less outside peak times (the burst of power usage between 6pm and 9pm is one of the main reasons power companies still need their coal plants, so any good greenie would be limiting use during that time anyway). Plus electric vehicles have fewer moving parts so the cost of repair and servicing is much lower (for example, there is no oil to replace).

On the downside, electric cars remain expensive. A secondhand Leaf similar to our one will set you back up to about $15,000 (roughly two to three times the cost of a similar petrol car) – a high upfront cost that will take years to recoup, depending on how much you drive. Car batteries also degrade over time, losing range, so the resale value will most likely dive after around ten years of life. Nissan have plans to allow consumers to replace their car batteries and reuse the old ones as part of their xStorage home battery units, while the Australian firm Relectrify is creating a system that can work with a wider range of ex-car batteries. It remains to be seen whether these plans will work, or whether recycling of old batteries will become more economical.

These days, the novelty of seeing electric cars on the streets has begun to wear off. There are over 6000 on our roads at this point and I no longer feel such a strong compulsion to wave every time I see one go past. My son was very young when we first bought our electric car and he is fascinated when we pass a petrol station – he’s never been inside one, and now the chances are he never will.


The Spinoff’s business content is brought to you by our friends at Kiwibank. Kiwibank backs small to medium businesses, social enterprises and Kiwis who innovate to make good things happen.

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Social enterprises in New Zealand: Kowhai Connection, Pomegranate Kitchen, Kilmarnock, Fabriko (all photos from akina.org.nz)
Social enterprises in New Zealand: Kowhai Connection, Pomegranate Kitchen, Kilmarnock, Fabriko (all photos from akina.org.nz)

BusinessFebruary 17, 2018

Are all businesses social enterprises? It’s a question of definition

Social enterprises in New Zealand: Kowhai Connection, Pomegranate Kitchen, Kilmarnock, Fabriko (all photos from akina.org.nz)
Social enterprises in New Zealand: Kowhai Connection, Pomegranate Kitchen, Kilmarnock, Fabriko (all photos from akina.org.nz)

What does it mean to be a social enterprise today? Is it about profit, purpose, or both? Steven Moe takes us through the various definitions.

One of the comments I’ve heard about the social enterprise sector is that it’s unclear what the criteria is to be one. Ultimately, aren’t all businesses social enterprises? If nothing else, businesses employ people. This is a question that will be increasingly common as the term becomes more widely known, and it’s one I think is worth considering.

But first, let’s remind ourselves what a social enterprise’s core features are. To do that, we need to get straight what we even mean when we use the term.

“How are you defining a social enterprise then?”

The Ākina Foundation exists to grow social enterprise across New Zealand. It offers the following definition which sums up the key elements of a social enterprise philosophy:

“Social enterprises are purpose-driven organisations that trade to deliver social and environmental impact.”

So, according to this definition, there’s no mandate about the specific form of impact, what’s being traded, or exclusivity when it comes to the legal form chosen – charity vs. company vs. incorporated society etc (more on that here). “We see social enterprises of all shapes and sizes, but there’s one thing that they have in common — their drive to create a sustainable, positive impact in their communities and make the world a more inclusive and prosperous place for everyone,” says Ākina’s CEO Louise Aitken. Ākina’s definition is a pretty wide one, but the key word is ‘purpose’, of which more below.

Pomegranate Kitchen offers catering services and delivers meals prepared by former refugees living in Wellington (akina.org.nz)

Before getting to tied up in local definitions, let’s look overseas, where the social enterprise conversation has been going for longer. For example, Social Enterprise Scotland says: “Social enterprises are innovative, independent businesses that exist to deliver a specific social and/or environmental mission. All their profits go towards their mission. Social enterprise is a dynamic, ethical and more sustainable way of doing business.” While the organisation says it tries to be as inclusive as possible, it also sets out five essential characteristics of a social enterprise in its voluntary code of practice:

  1. They trade goods and services, but the primary objective is social/environmental impact.
  2. Profits are all reinvested in the business or in the purpose.
  3. If dissolved, assets go to another organisation with similar aims (this part and the last one make up ‘asset lock’)
  4. Is managed in an accountable way and reports back
  5. Not part of public sector

This shows the divergence of views on things like profit distribution and asset lock in social enterprise. For example, I think it’s possible to have some private return to individual shareholders if someone has a great business idea that’s social enterprise. Social enterprises aren’t a subset of charity, where there can be no private gain. Social enterprise is a whole new category unto itself that reinvents business, combining the best of both charitable intentions and profit-making aspirations.

Here’s the Canadian Social Enterprise Foundation definition of social enterprise. “Social mission driven organisations which apply market-based strategies to achieve a social purpose. The movement includes both non-profits that use business models to pursue their mission and for-profits whose primary purposes are social. Their aim is to accomplish targets that are social and/or environmental as well as financial: is often referred to as the triple bottom line. Many commercial businesses would consider themselves to have social objectives, but social enterprises are distinctive because their social or environmental purpose remains central to their operation.”

Note that in the definition above there are no restrictions on return of profit.

The challenge for the local social enterprise community is to look at what’s been done around the world and then be clear about what a social enterprise is here in New Zealand.

“But wait – for real – isn’t every business a social enterprise?”

When I’m asked about why all businesses aren’t really social enterprises, I come back to two words: purpose and profit. A traditional business focuses primarily on profit. A social enterprise often takes profit into account as a major factor (it needs to because it’s trading), but it also has a purpose which likely surpasses the profit drive and brings it under the purpose umbrella – in other words, the profit is a means to achieve the purpose. It’s that single-minded focus on purpose which really sets a social enterprise apart from most businesses. I think it also means that most businesses could, if they chose to, take on more of the principles and characteristics of a social enterprise in the future.

For now, let’s look at what the difference means for a social enterprise. First, it often means that explaining the business case is a little more complicated than simply stating how much the return on investment will be. The traditional way of thinking about a business and its beneficiaries is limited to focusing mainly on shareholder returns. For a social enterprise, the purpose may be met by thinking about who’s being employed, what’s being made, how it’s being made and whom it’s being sold to.

Fabriko aims to develop immersive hands-on digital fabrication and technology learning experiences. (akina.org.nz)

In other words, a social enterprise can be a success without generating massive profits for its shareholders. By simply existing, it may employ people who would otherwise not have jobs – that’s positive. Equally, a successful social enterprise may generate profits and it may be that the investors receive dividends from their operations. That’s positive too. In either scenario, there’s some extra element – some special sauce – that makes a social enterprise different from a normal business. Defining what that special ingredient is will vary from situation to situation, but they generally boil down to this focus on purpose rather than profit.

“Sorry, I really need an example of how this would play out practically…”

No problem. Let’s look at two hypotheticals to flesh out how the approaches might differ between a traditional business and a social enterprise.

John has an idea: a business making widgets. It’ll employ ten staff. He’ll source materials from the cheapest source. He’ll make a profit of $100,000 per year.

Jane has an idea: a business to make biodegradable widgets. It’ll employ ten staff, most of whom come from a marginalised community and have had trouble finding jobs. She will source materials from fair trade sources and companies that are transparent about their CSR (corporate social responsibility) policies and procedures. She’ll make a profit of $50,000 per year, but in operating, the business itself will be generating a positive impact in several areas – particularly environmental and societal.

These are crash test dummies you can pick apart, but the point is that in both of these examples, John and Jane are operating businesses. Yet you can see how some extra purpose has seeped into Jane’s approach in really practical ways. This isn’t about discouraging John from what he’s doing or arguing it’s not worthwhile. It’s about laying a challenge for those setting up a business to start thinking more broadly about how they will operated and the impact their business will have, beyond the profits they’ll make.

Can we say that every business is a social enterprise? I don’t think so. But the discussion is important as we push the boundaries of what’s possible in this sector.

Steven Moe is a Christchurch lawyer who hosts a podcast interviewing social entrepreneurs called “Seeds: Talking Purpose”. He’s written a legal handbook for social enterprises, available free by email at stevenmoe@parryfield.com.


The Spinoff’s business content is brought to you by our friends at Kiwibank. Kiwibank backs small to medium businesses, social enterprises and Kiwis who innovate to make good things happen.

Check out how Kiwibank can help your business take the next step.