KEY POINTS:
A request for people to save power at home and at work will hit television screens in days but a highly sensitive Government is adamant there is no electricity crisis and no chance of blackouts.
Unless a significant amount of rain falls into hydro storage lakes this week, advertising will begin on Sunday asking people to do things like turn off lights, heated towel rails and computers when they're not needed.
The campaign - discussed by Cabinet yesterday but paid for by the electricity industry - follows months of building concern over low hydro lake levels due to a prolonged drought.
Unlike previous power conservation campaigns, this one will not have a target for savings and there appears to be little outward urgency within the Beehive to achieve big reductions.
Nobody was even willing to say yesterday how much power they hoped the campaign would save.
Energy Minister David Parker said the situation was being managed well and there was no need for a target yet.
"Power cuts are not even an unlikely prospect," Mr Parker said. "We're not setting a target at this stage, we're actually managing things a lot better this time than we've previously managed."
He said the campaign was a case of "ramping up a little" the efforts made so far. "It's not a crisis - it's just another step along the way when you have a dry winter."
He did, however, say it was a "serious" situation.
Power conservation campaigns were held in 2001 and 2003 when hydro lake levels were also low, and in both cases blackouts were not experienced.
Negotiations are continuing with major industrial users of electricity to buy back - and therefore free up - more power. Mr Parker said if normal rainfall dropped into the hydro catchments from now on, as forecast, then extra measures like legislation to allow more water to be taken from lakes would not be needed.
In 1992's power crisis legislation was drawn up to allow the water levels of hydro lakes to drop below agreed levels for emergency reasons.
Mr Parker flagged that as an option over the weekend, but yesterday said legislation was not being drawn up "at this point".
The low-key nature of the campaign announcement drew fire from National's energy spokesman Gerry Brownlee, who claimed the Government was sending mixed messages and hoping for torrential rain.
People were being asked to save power but being told there was nothing to worry about.
"They're in total denial," Mr Brownlee said. "It's the crisis you have when you're not admitting there's a crisis."
Labour is clearly sensitive about how an electricity shortage could affect it politically in election year.
The party is acutely aware voters' patience with electricity conservation campaigns might be wearing thin and there could be a backlash against the Government.
The chief executive of national grid operator Transpower, Patrick Strange, said the industry was "very concerned" with the situation and he saw it as serious.
He was hopeful the public would embrace the saving campaign because people appreciated honesty, and feedback suggested they were willing to do prudent things.
"The fact that power bills are through the roof this winter probably encourages them too," Dr Strange said.
Contact energy spokesman Jonathan Hill said the measures were appropriate for the current situation.
The company owns the Clutha hydro scheme, fed by a half-empty Lake Hawea.
"It sounds pretty reasonable to me. It feels about right. We've been calling for something similar from our customers for about a month."
Meridian, which operates the Waitaki and Manapouri hydro schemes, had also been encouraging its customers to conserve electricity where they could, spokesman Alan Seay said.
MetService weather ambassador Bob McDavitt said a front bringing brief heavy rain to the Southern Lakes was expected on Thursday or Friday.
- additional reporting, Craig Borley
