Power cuts loom as lake levels slump

By KEVIN TAYLOR and AUDREY YOUNG

Power supplies are likely to be disrupted this winter because of low flows into hydro lakes.

The Government warned yesterday that the disruptions could be serious.

And electricity users are being urged to double their savings to 10 per cent. In Government buildings, the target will be 15 per cent.

The measures are a response to the lowest water flows into hydro storage lakes in the 71 years records have been kept.

The Winter Power Taskforce, a group of power suppliers and users formed to respond to the crisis, yesterday set the 10 per cent target.

The Government has set a 15 per cent savings target for the state sector, apart from schools and hospitals.

Businesses use half the country's electricity. Homes take 35 per cent and the Government sector the rest.

Other developments in the looming power crisis:

* The power "riskmeter", which measures the risk of shortfall in electricity supplies, was raised one notch to red.

* A nationwide power saving campaign will start at the weekend.

* Power companies have agreed to make maximum use of thermal power stations, which use gas, coal and oil.

Hydro storage levels are not as low as they were during the last major crisis, in 1992, but are falling more quickly than they were then.

The Winter Power Taskforce will publish daily power consumption figures from today.

The taskforce this month asked users to reduce their electricity consumption by 5 per cent or risk power cuts.

Over the past two weeks savings have reached 3 per cent.

Taskforce co-ordinator Dr Patrick Strange said if no further action was taken the risk of electricity shortages would be unacceptably high.

Energy Minister Pete Hodgson said the 15 per cent state sector target showed that the Government was becoming increasingly concerned.

"Instead of saying we have the distinct possibility of serious disruption, I think we can now say there is every likelihood," he said.

"It is not yet grave and it is not yet certain that it will become grave, but it is four months into a year which is the driest on record so far."

The savings might have to be maintained for six to seven months.

He expected heating and air conditioning to be restricted and worksites that had diesel generation capacity to use it.

The state sector - excluding schools and hospitals - used only 2 per cent of power, but it was important to show leadership.

Asked about the economic impact, Finance Minister and Acting Prime Minister Michael Cullen said the main danger was that some businesses could have difficulty continuing operations at their present level.

"That could lead to cuts in production and potentially to cuts in employment over the short term, and they would clearly have an impact."

But reaching the savings target could avoid power cuts.

"If we are prepared to make voluntary savings, if people are prepared to look at turning off lights, turning off the TV instead of just using the remote control, perhaps being a bit colder than we otherwise would be, 20 [degrees] rather than 22 or 23 ... then we would hopefully be able to avoid the situation in which people's livelihoods are affected."

The Energy Efficiency and Conservation Authority chief executive, Heather Staley, said it was still possible to live comfortably and save 10 per cent of household power use.

"We don't want little old ladies dying of cold," Ms Staley said.

Dr Strange said the faster the 10 per cent target was reached the better.

"Every day that we don't have savings, they are lost forever."

He said the first wave of television advertising to support the savings target would start at the weekend.