Power cuts target hot water

Power is being cut to hot-water cylinders in thousands of homes around the country.

With electricity saving running at just 3 per cent - well short of the Government's 10 per cent target - Contact Energy moved last night to cut water heating power for up to five hours a day.

Contact says the cuts will not affect people: "You could still have a shower at the end of three hours and not notice the difference," said spokesman Pattrick Smellie.

The cuts were to reduce demand at peak times because industrial users were paying soaring prices.

The energy crunch has forced Carter Holt Harvey to hold back on new investment, delaying a decision on upgrading a mill in Whakatane.

In Parliament, the Government came under fire from Act MP Stephen Franks, who said Conservation Minister Chris Carter needed to think of New Zealanders "shivering in the dark" when considering a power scheme that might flood 200ha of regenerating gorse and broom.

But heavy rain forecast for the South Alps today could bring some relief to depleted hydro lakes.