Metservice was forecasting another 5cm to 8cm of snow above 500m on the central plateau last night.
But the weather is improving with a few light snow showers still likely above 500 to 600 metres until this afternoon.
Metservice said snow showers on the Desert Road would continue today, fuelled by an aggressive sub-Antarctic southerly wind.
At the peak of the snow storm, 900 homes and businesses were without power in the Napier to Taupo Rd region and on the Taupo plains.
Spokesman for lines company Unison, Danny Gough, said trees had come down onto power lines and others were looking dangerous.
He said the trees would need to be felled before power could be restored.
Mr Gough said there were still 400 homes and businesses without power and some could be in the dark until later this week.
"Please bear with us. We do understand this is a huge issue for affected customers and we're doing all we can," Mr Gough said.
Police closed the Desert Road, State Highway 49 from Waiouru to Ohakune and State Highway One between Waiouru and Taihape last night. The roads remained closed this morning.
Two lows, one east of Gisborne and the other north of Bay of Plenty, were directing a cold, moist southeast flow on to the North Island.
The unseasonal snow caught sheep farmers in the middle of late lambing.
Snow was reported as far north as Te Aroha and Katikati. Much of Waikato shivered in 6C temperatures and in Auckland the temperature peaked at 10C.
WeatherWatch head analyst Philip Duncan said yesterday's snowfalls were a rare event.
"I've had people say to me this is far worse than the middle of winter and I have to agree.
"Even if this was the middle of winter this is extreme."
The Taupo-Napier highway looked like a car graveyard yesterday, as freezing, blustery weather prevented motorists retrieving vehicles trapped in heavy snow.
Further snowfall meant motorists at the Taupo end of the road were unlikely to be able to return to their cars until this morning, and travellers from the Desert Road were also expected to remain stranded last night.
Up to 900 people evacuated from the Napier-Taupo road were yesterday in temporary accommodation.
Marae in Napier and Taupo took some travellers, and capacity in hotels and motels already crowded for school holidays was further stretched.
TV One news reported that 56 people were taken to accommodation in Taupo and Waiouru after becoming stuck on the Desert Road.
Travellers described a harrowing night spent in sub-zero conditions.
"I thought about the worst a couple of times," said Melissa Barry, who became stranded north of Tarawera on Sunday afternoon.
"At about 3am the snow was a foot (30cm) high, piling on to the car. I started to wonder whether anyone would ever rescue us."
Ms Barry and two friends huddled in blankets at the Taupo Events Centre, a registration point for owners of more than 300 abandoned cars.
"When the snow began to fall, it was exciting," said her friend Areta Winikerei, who was returning home to Putaruru from Napier.
"But soon we couldn't drive. Cars were skidding in front of us, and we could hear trees cracking."
After 14 hours in their car, they were rescued by Civil Defence workers at 5am.
Civil Defence emergency manager Phil Parker said his staff of 40 found almost everyone in good spirits, and uninjured.
"It was a total mix - young people, elderly, babies, dogs, people needing medicine. They all needed to be rescued, and with such limited access, it took a while to find them."
Police and members of the Taupo four-wheel-drive club took more than 200 people to the Rangitaiki Tavern for warmth and hot soup.
Tavern owners Duncan and Marion Klaus said they had been up for 30 hours feeding and housing people.
"Busloads of families - one with a 7-week-old baby - just poured in and flopped on the floor," said Mrs Klaus.
"We gave them all we had. The [Taupo] mayor rang and said 'send me the bill' so we're happy about that."
Others were taken by Army Unimogs to buses at safe points on the road and then driven to Napier.
- ADDITIONAL REPORTING: Eloise Gibson, NZHERALD STAFF
