KEY POINTS:
The chief of one of New Zealand's biggest electricity suppliers says the danger of power cuts this winter is greater than at any time he can remember.
Keith Turner, of Meridian Energy, told Parliament's commerce committee yesterday that a meeting of industry bosses on Wednesday had looked at pressures on the system.
He believed there would be enough generation and demand control to cover unexpected failures, but "it is a very fine margin - finer than I have seen it in my career".
Dr Turner is stepping down from his leadership role at the end of next month after 39 years in the industry.
He told the MPs that problems and worries were caused by lower-than-usual flows into lakes, the Cook Strait cable being down to one operational pole and the Huntly power station not operating at full capacity because of cooling issues.
He unplanned closure of a Contact Energy plant in Taranaki was also coinciding with planned maintenance at other plants.
Work was being done to reduce the risk, and the second pole of the Cook Strait cable was being partially re-opened.
New Vector chief executive Simon Mackenzie said security of supply was a major issue facing Vector and the industry.
A series of factors had combined to put the national system on the edge, and it would not take much before limited cuts, such as turning off home hot-water systems, became necessary.
Transpower chief executive Patrick Strange told Radio New Zealand yesterday that a decision on reactivating the Pole One power cable in Cook Strait would be made next month.
The cable was turned off last year because of its age and safety concerns.
Genesis Energy, New Zealand's largest energy retailer, said last night it was expected that this winter could be tight in terms of supply.
But there were a lot of variables to consider.
"The inflows of rain into the southern lakes in the South Island has been below average in the last month or so and if there is no rain in autumn, then things could be pretty tight," said spokesman Richard Gordon.
- NZPA
