Mallard aims to deliver secure power supplies

Political considerations do not count for much where hydro lake levels are concerned, says Energy Minister Trevor Mallard.

The minister, who took over the portfolio in December's Cabinet reshuffle, said he was trying to keep politics out of an issue which everyone agreed needed work.

"The unfortunate thing is that rainfall doesn't take too much notice of elections - so really we've got to continue to develop the policy," he said.

That policy is to make sure that the country can cope with a one-in-60 dry year without shortages or restrictions on use.

"Clearly we are slightly above average for this time of the year now. Some of the dry years can start at this level, but over a six- to eight-week period things can drop away very quickly."

Additions to the baseload generation - including new wind turbines and a new gas turbine at Huntly - had been useful.

"We're not going to be caught this time by fuel stocks for gas- and coal-fired generators. Lack of preparation has been an issue in the past and I think that there is some security around that now."

On top of this was the Government's reserve power station at Whirinaki in the Hawkes Bay, which was ready to be used if needed.

"I think all of us from a pricing point of view would prefer it's not, because it's an expensive thing to run as well as an expensive thing to have there."

Mallard said the Electricity Commission - established by his predecessor as energy minister, Peter Hodgson - had done its job well, organising the reserve generation needed for this winter.

Now the job is to look at 2006 - is the reserve generation enough to cope with the annual growth in electricity demand?

"And then there's stuff which I'm still working quite hard to get my head around - what is the capacity on the demand side?

"I wouldn't expect demand reduction, but efficiency to the point where demand growth is not as fast as it might have been.

"I think there is room for people to keep much closer monitoring of the situation than has been there in the past. Six to eight weeks can make a big difference.

"The information systems are there now, so there can be discussions around what the commission needs to do and when."