Risk of blackouts eases as lake levels increase

By VERNON SMALL and NZPA

The chance of power blackouts has been reduced with good inflows into hydro lakes.

"It's not over [the looming power crisis]. We don't sense victory yet but we can say that it's been a good week," said Energy Minister Pete Hodgson yesterday.

Inflows for hydro lakes have been above average for the first time since June, but levels were up by less than one day's energy supply.

Last month, Mr Hodgson called for a 10 per cent energy saving for 10 weeks from New Zealanders and a 15 per cent saving from the public sector to stave off the looming crisis.

Mr Hodgson said warmer temperatures and heavy rain had combined with the savings to ease the risk of power blackouts unless there was a big generator failure.

So far the country had conserved 363 gigawatt hours - equivalent to 10 per cent of lake levels.

After meeting industry and consumer representatives yesterday, Mr Hodgson said: "Everyone is feeling pleased that we've had a good week and everyone says that we are not out of the woods yet. We don't know when we will be out of the woods."

The forecast for the next few days is for little rain and the longer-term forecast is for a continuation of the pattern of the past seven or eight months.

The secondary energy market for unwanted power opened for business yesterday but it would be a week before it was known whether it would work.

"The hope is to quietly educate people of its availability over the next month with a view to getting 100 [medium or larger consumers] either buying or selling," Mr Hodgson said.

He expressed concern that some consumers had been moved onto the spot market price without their knowledge.

"It is clear that in some cases the level of notice was insufficient."

The industry agreed that from Saturday anyone whose fixed-term contracts had ended would be given a month's notice that they were going onto the spot market.

Some schools and businesses were forced to buy electricity at a higher price on the spot market after power firms refused to give them fixed-price contracts when previous contracts expired.

About 10,000 TrustPower customers in mid-Northland can expect more than a 10 per cent increase in their power bills in about a month.

TrustPower spokesman Graeme Purches said the increase reflected the long term rise of wholesale electricity prices and the difficulties of supplying power to the region.

"The bottom line is we can't continue to sell something for less than it costs."You don't need to be a rocket scientist to work out that if the wholesale electricity prices are ramping upward then it's going to be passed on to consumers."

Feature: Electricity

Energy Efficiency and Conservation Authority