Review to probe power failings

By PAULA OLIVER

The likelihood of power blackouts across the country has vanished, but a review into why they threatened is under way.

Energy Minister Pete Hodgson called off the "10 per cent for 10 weeks" power saving campaign yesterday - after just six and a half weeks.

Hydro lake levels are below what they were last week, but Mr Hodgson said that it was prudent to call off the campaign because the spring melt was edging closer and generators had more confidence.

But he warned that New Zealanders should not think the same thing could not happen again next year.

"The electricity concerns we have had are over, for now. But I've said that carefully.

"If the spring rains don't come, we go into, and prospectively come out of summer with low lake levels. Whereas we began this year with high lake levels."

A wide-ranging review into how the electricity system performed over winter will be open for submissions until October 5.

Mr Hodgson said he expected the review, which should be completed by Christmas, would bring a lot of minor changes to the market.

He would not comment on what those changes might be.

The Government's handling of the electricity sector came under fire from National finance spokesman Bill English yesterday. He suggested that state-owned power companies raked in as much as $2 million a day in profit during the crisis.

But Mr Hodgson described the attack as "economically illiterate". He said the profit figures did not matter, but he would happily share them when they became available.

The big winner out of the power fiasco had been Contact Energy, Mr Hodgson said, deflecting the heat from the state-owned enterprises.

In contrast, the big loser had been Natural Gas Corporation, which eventually sold out of power retailing after taking big hits on the spot market.

Electricity industry leaders who attended their final meeting with Mr Hodgson at Parliament yesterday emerged with broad smiles.

They said that they supported his call for electricity users to make some of their savings permanent.

Mr Hodgson said he received a power-saving suggestion from about one in 10 New Zealanders during the crisis, and he applauded their efforts.

Among the more obscure tips sent to the Government was one that involved using helicopters to move water from full lakes to empty hydro lakes.

Some supported nuclear power.

"I hope that the inconvenience was not too much. I do hope that people never did take it too hard, get too cold, or take it out on themselves," he said.

"I think there have been some pretty useful lessons learned."

The review will be accessible on www.winterreview.govt.nz from September 13.

Power to the People Supplement

Energy Efficiency and Conservation Authority